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When Collective Bargaining Leads to Inequality: Determinants of Two-Tier Provisions in Canadian Collective Agreements

Author

Listed:
  • Mélanie Laroche
  • Frédéric Lauzon Duguay
  • Patrice Jalette

Abstract

This study examines two-tier provisions—a form of labor segmentation in firms that is increasingly formalized in collective agreements. Drawing on a large population of Canadian collective agreements from the private sector, the authors show that the adoption of these provisions is related more to industrial relations context than to economic uncertainty. Also, depending on whether the two-tier provisions focus on compensation or on job security, their determinants operate dissimilarly. This study contributes to labor market segmentation theory by showing the circumstances under which collective bargaining can marginalize newly hired workers in the primary labor market, namely, weak union power, pressures from sectoral comparisons, employer use of concessionary tactics and, ironically, collective agreements featuring advantageous working conditions.

Suggested Citation

  • Mélanie Laroche & Frédéric Lauzon Duguay & Patrice Jalette, 2019. "When Collective Bargaining Leads to Inequality: Determinants of Two-Tier Provisions in Canadian Collective Agreements," ILR Review, Cornell University, ILR School, vol. 72(4), pages 871-896, August.
    • Handle: RePEc:sae:ilrrev:v:72:y:2019:i:4:p:871-896
    DOI: 10.1177/0019793918813363
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    References listed on IDEAS

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    1. Kevin Pineda‐Hernández & François Rycx & Mélanie Volral, 2022. "How collective bargaining shapes poverty: New evidence for developed countries," British Journal of Industrial Relations, London School of Economics, vol. 60(4), pages 895-928, December.
    2. Ruth Barton & Élodie Béthoux & Camille Dupuy & Anna Ilsøe & Patrice Jalette & Mélanie Laroche & Steen Erik Navrbjerg & Trine Pernille Larsen, 2021. "Understanding the dynamics of inequity in collective bargaining: evidence from Australia, Canada, Denmark and France," Transfer: European Review of Labour and Research, , vol. 27(1), pages 113-128, February.

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