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Labor-Management Cooperation: Antecedents and Impact on Organizational Performance

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  • Stephen J. Deery
  • Roderick D. Iverson

Abstract

This study examines the antecedents and outcomes of labor-management cooperation. Data were drawn from 305 branches of a large unionized Australian-based multinational banking organization. The authors find that perceptions of a cooperative labor relations climate were positively influenced by procedural justice, the union's willingness to adopt an integrative approach to bargaining, and management's willingness to share information freely with the union. The findings also indicate that a cooperative labor-management relationship contributed to higher productivity and improved customer service. In addition, organizational commitment was found to have a positive effect on branch-level productivity and customer service, and union loyalty was associated with lower absenteeism.

Suggested Citation

  • Stephen J. Deery & Roderick D. Iverson, 2005. "Labor-Management Cooperation: Antecedents and Impact on Organizational Performance," ILR Review, Cornell University, ILR School, vol. 58(4), pages 588-609, July.
    • Handle: RePEc:sae:ilrrev:v:58:y:2005:i:4:p:588-609
    DOI: 10.1177/001979390505800404
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    References listed on IDEAS

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    1. Stephen Deery & Roderick Iverson & Peter Erwin, 1999. "Industrial Relations Climate, Attendance Behaviour and the Role of Trade Unions," British Journal of Industrial Relations, London School of Economics, vol. 37(4), pages 533-558, December.
    2. Ichniowski, Casey & Shaw, Kathryn & Prennushi, Giovanna, 1997. "The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines," American Economic Review, American Economic Association, vol. 87(3), pages 291-313, June.
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    Cited by:

    1. Amanda Pyman & Peter Holland & Julian Teicher & Brian K. Cooper, 2010. "Industrial Relations Climate, Employee Voice and Managerial Attitudes to Unions: An Australian Study," British Journal of Industrial Relations, London School of Economics, vol. 48(2), pages 460-480, June.
    2. Michail Veliziotis & Guy Vernon, 2023. "From monopoly to voice effects? British workplace unionism and productivity performance into the new millennium," British Journal of Industrial Relations, London School of Economics, vol. 61(3), pages 574-594, September.
    3. Gilbert Cette & Nicolas Dromel & Rémy Lecat, 2013. "Labour Relations Quality and Productivity: An Empirical Analysis on French Firms," Review of Economics and Institutions, Università di Perugia, vol. 4(2).
    4. Martin, Alexander & Weibelzahl, Martin, 2014. "Where and when to pray? Optimal mass planning and efficient resource allocation in the church," FAU Discussion Papers in Economics 06/2014, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    5. Heung-Jun Jung & Mohammad Ali, 2017. "Corporate Social Responsibility, Organizational Justice and Positive Employee Attitudes: In the Context of Korean Employment Relations," Sustainability, MDPI, vol. 9(11), pages 1-24, October.
    6. Vedrana Čikeš & Helga Maškarin Ribarić & Kristina Črnjar, 2018. "The Determinants and Outcomes of Absence Behavior: A Systematic Literature Review," Social Sciences, MDPI, vol. 7(8), pages 1-26, July.
    7. Dionne Pohler & Andrew Luchak, 2015. "Are Unions Good or Bad for Organizations? The Moderating Role of Management's Response," British Journal of Industrial Relations, London School of Economics, vol. 53(3), pages 423-459, September.
    8. John T. Addison & Paulino Teixeira, 2020. "Trust and Workplace Performance," British Journal of Industrial Relations, London School of Economics, vol. 58(4), pages 874-903, December.
    9. Ed Snape & Tom Redman, 2012. "Industrial Relations Climate and Union Commitment: An Evaluation of Workplace-Level Effects," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 51(1), pages 11-28, January.
    10. Frank, Douglas H. & Wertenbroch, Klaus & Maddux, William W., 2015. "Performance pay or redistribution? Cultural differences in just-world beliefs and preferences for wage inequality," Organizational Behavior and Human Decision Processes, Elsevier, vol. 130(C), pages 160-170.
    11. Ariel C. Avgar & Julie Anna Sadler & Paul Clark & Wonjoon Chung, 2016. "Labor–Management Partnership and Employee Voice: Evidence from the Healthcare Setting," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 55(4), pages 576-603, October.

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