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The Effect of Unions on Productivity in a Multinational Manufacturing Firm

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  • Robert N. Mefford

Abstract

This paper examines the effect of unions on productivity in 31 plants of a large multinational firm in the years 1975–82. The plants, 60 percent of which are unionized, all produce a similar line of products using material-intensive, labor-intensive, low-technology methods. Results obtained by estimating a translog production function indicate that unionization's overall effect on productivity is positive. Specific findings are that unionization increases the capital-labor ratio and improves management performance, but it also raises the absenteeism rate. A net positive effect on productivity remains even when these channels of union influence are controlled for, a result that, the author suggests, may reflect an improved labor relations climate or improved labor quality associated with unionization.

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  • Robert N. Mefford, 1986. "The Effect of Unions on Productivity in a Multinational Manufacturing Firm," ILR Review, Cornell University, ILR School, vol. 40(1), pages 105-114, October.
    • Handle: RePEc:sae:ilrrev:v:40:y:1986:i:1:p:105-114
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    Cited by:

    1. Jeremy Smith, 2004. "Productivity Trends in the Coal Mining Industry in Canada," CSLS Research Reports 2004-07, Centre for the Study of Living Standards.
    2. Constanţa POPESCU, & Elena Diana ŞERB, & Andreiana CARMEN, 2016. "Study On The Repercussions Of Conflict Situations On Employment," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(1), pages 1-38, January.
    3. Siebert, W. Stanley & Zubanov, Nick & Chevalier, Arnaud & Viitanen, Tarja, 2006. "Labour Turnover and Labour Productivity in a Retail Organization," IZA Discussion Papers 2322, Institute of Labor Economics (IZA).

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