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From Exit to Voice in Shopfloor Governance: The Case of Company Unions

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  • Fairris, David

Abstract

The company union movement in the United States during the 1920s cannot be understood entirely in terms of employers' efforts either to block independent unionization or to foster greater worker loyalty through the paternalistic provisions of “welfare capitalism.” Company unions were institutional mechanisms by which workers voiced their concerns about shopfloor conditions to employers instead of exiting the firm. Evidence suggests that company unions led to both enhanced shopfloor productivity and safety, and were thus mutually beneficial for labor and management. Interestingly, however, the process by which they emerged was filled with conflict, historical contingency, and unintended consequences. Company unions were neither an inevitable nor even an intentional replacement for voluntary quits as a mechanism for addressing workers' shopfloor discontent.

Suggested Citation

  • Fairris, David, 1995. "From Exit to Voice in Shopfloor Governance: The Case of Company Unions," Business History Review, Cambridge University Press, vol. 69(4), pages 494-529, January.
    • Handle: RePEc:cup:buhirw:v:69:y:1995:i:04:p:494-529_06
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    Cited by:

    1. David Fairris, 1998. "Institutional Change in Shopfloor Governance and the Trajectory of Postwar Injury Rates in U.S. Manufacturing, 1946–1970," ILR Review, Cornell University, ILR School, vol. 51(2), pages 187-203, January.
    2. Szabó, Zsolt, 2012. "A kivonulás-tiltakozás-hűség fogalomhármas közgazdaságtani relevanciája a 21. században [The relevance of "exit, voice and loyalty" theory in 21st-century economics]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1311-1335.
    3. Ling Li & Shawn Rohlin & Perry Singleton, 2017. "Labor Unions and Occupational Safety: Event-Study Analysis Using Union Elections," Center for Policy Research Working Papers 205, Center for Policy Research, Maxwell School, Syracuse University.
    4. Chiaki Moriguchi, 2000. "The Evolution of Employment Relations in U.S. and Japanese Manufacturing Firms, 1900-1960: A Comparative Historical and Institutional Analysis," NBER Working Papers 7939, National Bureau of Economic Research, Inc.
    5. John Godard & Carola Frege, 2013. "Labor Unions, Alternative Forms of Representation, and the Exercise of Authority Relations in U.S. Workplaces," ILR Review, Cornell University, ILR School, vol. 66(1), pages 142-168, January.
    6. Alison D. Morantz, 2013. "Coal Mine Safety: Do Unions Make a Difference?," ILR Review, Cornell University, ILR School, vol. 66(1), pages 88-116, January.

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