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Collective Bargaining in the Canadian Public Sector, 1978–2008: The Consequences of Restraint and Structural Change

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  • Michele Campolieti
  • Robert Hebdon
  • Benjamin Dachis

Abstract

We study public-sector bargaining and contract outcomes using Canadian data from 1978 to 2008. We have a number of interesting results, but our principal findings are from our analysis of wage settlements. We find that the essential services designation, which only allows non-essential members of a bargain unit to strike, is associated with decreases in wages. Our estimates also suggest that there is an arbitration wage premium and that making adjustments to the ability to pay criterion used by arbitrators to determine awards does not affect this premium. We also discuss the implications of our estimates.

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  • Michele Campolieti & Robert Hebdon & Benjamin Dachis, 2016. "Collective Bargaining in the Canadian Public Sector, 1978–2008: The Consequences of Restraint and Structural Change," British Journal of Industrial Relations, London School of Economics, vol. 54(1), pages 192-213, March.
    • Handle: RePEc:bla:brjirl:v:54:y:2016:i:1:p:192-213
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    File URL: http://hdl.handle.net/10.1111/bjir.12082
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    References listed on IDEAS

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    1. Peter Cramton & Morley Gunderson & Joseph Tracy, 1999. "The Effect Of Collective Bargaining Legislation On Strikes And Wages," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 475-487, August.
    2. Currie, Janet & McConnell, Sheena, 1991. "Collective Bargaining in the Public Sector: The Effect of Legal Structure on Dispute Costs and Wages," American Economic Review, American Economic Association, vol. 81(4), pages 693-718, September.
    3. Benjamin Dachis & Robert Hebdon, 2010. "The Laws of Unintended Consequence: The Effect of Labour Legislation on Wages and Strikes," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 304, June.
    4. Michele Campolieti & Robert Hebdon & Douglas Hyatt, 2005. "Strike Incidence and Strike Duration: Some New Evidence from Ontario," ILR Review, Cornell University, ILR School, vol. 58(4), pages 610-630, July.
    5. Currie, Janet & McConnell, Sheena, 1994. "The Impact of Collective-Bargaining Legislation on Disputes in the U.S. Public Sector: No Legislation May Be the Worst Legislation," Journal of Law and Economics, University of Chicago Press, vol. 37(2), pages 519-547, October.
    6. Patrice Jalette & Robert Hebdon, 2012. "Unions and Privatization: Opening the “Black Boxâ€," ILR Review, Cornell University, ILR School, vol. 65(1), pages 17-35, January.
    7. Gunderson, Morley & Hebdon, Robert & Hyatt, Douglas, 1996. "Collective Bargaining in the Public Sector: Comment," American Economic Review, American Economic Association, vol. 86(1), pages 315-326, March.
    8. Gunderson, Morley & Melino, Angelo, 1990. "The Effects of Public Policy on Strike Duration," Journal of Labor Economics, University of Chicago Press, vol. 8(3), pages 295-316, July.
    9. Siebert, W Stanley & Addison, John T, 1981. "Are Strikes Accidential?," Economic Journal, Royal Economic Society, vol. 91(362), pages 389-404, June.
    10. Harrison, Alan & Stewart, Mark, 1989. "Cyclical Fluctuations in Strike Durations," American Economic Review, American Economic Association, vol. 79(4), pages 827-841, September.
    11. Reder, Melvin W & Neumann, George R, 1980. "Conflict and Contract: The Case of Strikes," Journal of Political Economy, University of Chicago Press, vol. 88(5), pages 867-886, October.
    12. Michele Campolieti & Robert Hebdon & Benjamin Dachis, 2014. "The Impact of Collective Bargaining Legislation on Strike Activity and Wage Settlements," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(3), pages 394-429, July.
    13. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-338, May.
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    Cited by:

    1. Michele Campolieti & Chris Riddell, 2019. "Interest Arbitration and the Narcotic Effect: Evidence from Three Decades of Collective Bargaining in Ontario," British Journal of Industrial Relations, London School of Economics, vol. 57(3), pages 421-452, September.
    2. Michele Campolieti & Chris Riddell, 2020. "Does Mediation-Arbitration Reduce Arbitration Rates? Evidence from a Natural Experiment," ILR Review, Cornell University, ILR School, vol. 73(1), pages 211-235, January.
    3. Richard P. Chaykowski, 2019. "Time to Tweak or Re-boot? Assessing the Interest Arbitration Process in Canadian Industrial Relations," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 539, April.
    4. José L Zafra-Gómez & Ana María Plata-Díaz & Gemma Pérez-López & Antonio Manuel López-Hernández, 2016. "Privatisation of waste collection services in response to fiscal stress in times of crisis," Urban Studies, Urban Studies Journal Limited, vol. 53(10), pages 2134-2153, August.

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