IDEAS home Printed from https://ideas.repec.org/p/cbr/cbrwps/wp213.html
   My bibliography  Save this paper

The Management of Pay as the Influence of Collective Bargaining Diminishes

Author

Listed:
  • W Brown
  • P Marginson
  • J Welsh

Abstract

The management of pay in Britain has changed substantially in recent years. The paper starts with a theoretical discussion of the extent to which individual employers can exercise discretion in the management of their employees' pay. It then examines the ways in which pay is used to secure productive effort. An analysis of the influence of trade unions leads on to an examination of the diminishing influence of collective bargaining in British pay determination. The implications of this are discussed for employer pay strategies, within and between firms, and internationally. It concludes with the consequences of diminishing trade union influence for the distribution of pay.

Suggested Citation

  • W Brown & P Marginson & J Welsh, 2001. "The Management of Pay as the Influence of Collective Bargaining Diminishes," Working Papers wp213, Centre for Business Research, University of Cambridge.
  • Handle: RePEc:cbr:cbrwps:wp213
    Note: PRO-2
    as

    Download full text from publisher

    File URL: https://www.jbs.cam.ac.uk/cbrwp213/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. S Oxenbridge & S Deakin & W Brown & C Pratten, 2001. "Collective Employee Representation and the Impact of Law: Initial Response to the Employment Relations Act 1999," Working Papers wp206, Centre for Business Research, University of Cambridge.
    2. Machin, Stephen, 1997. "The decline of labour market institutions and the rise in wage inequality in Britain," European Economic Review, Elsevier, vol. 41(3-5), pages 647-657, April.
    3. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
    4. Blanchflower, D. & Oswald, A. & Garrett, M., 1988. "Insider Power In Wage Determination," Papers 319, London School of Economics - Centre for Labour Economics.
    5. Stephen Machin, 2000. "Union Decline in Britain," British Journal of Industrial Relations, London School of Economics, vol. 38(4), pages 631-645, December.
    6. Stewart, Mark B, 1987. "Collective Bargaining Arrangements, Closed Shops and Relative Pay," Economic Journal, Royal Economic Society, vol. 97(385), pages 140-156, March.
    7. Paul Marginson & Keith Sisson, 1998. "European Collective Bargaining: A Virtual Prospect?," Journal of Common Market Studies, Wiley Blackwell, vol. 36(4), pages 505-528, December.
    8. Forth, John & Millward, Neil, 2001. "The Impact of Unions on Pay Levels in Lower-Skilled Jobs," National Institute Economic Review, National Institute of Economic and Social Research, vol. 176, pages 76-90, April.
    9. Hodgson, Geoff, 1982. "Theoretical and Policy Implications of Variable Productivity," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 6(3), pages 213-226, September.
    10. William Brown & Simon Deakin & David Nash & Sarah Oxenbridge, 2000. "The Employment Contract: From Collective Procedures to Individual Rights," British Journal of Industrial Relations, London School of Economics, vol. 38(4), pages 611-629, December.
    11. Lindbeck, Assar & Snower, Dennis J, 1986. "Wage Setting, Unemployment, and Insider-Outsider Relations," American Economic Review, American Economic Association, vol. 76(2), pages 235-239, May.
    12. Stewart, Mark B, 1990. "Union Wage Differentials, Product Market Influences and the Division of Rents," Economic Journal, Royal Economic Society, vol. 100(403), pages 1122-1137, December.
    13. Blau, Francine D & Kahn, Lawrence M, 1996. "International Differences in Male Wage Inequality: Institutions versus Market Forces," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 791-836, August.
    14. repec:bla:econom:v:58:y:1991:i:230:p:155-72 is not listed on IDEAS
    15. Akerlof, George A, 1984. "Gift Exchange and Efficiency-Wage Theory: Four Views," American Economic Review, American Economic Association, vol. 74(2), pages 79-83, May.
    16. Weiss, Andrew & Landau, Henry J, 1984. "Wages, Hiring Standards, and Firm Size," Journal of Labor Economics, University of Chicago Press, vol. 2(4), pages 477-499, October.
    17. repec:fth:prinin:287 is not listed on IDEAS
    18. repec:bla:econom:v:57:y:1990:i:226:p:143-70 is not listed on IDEAS
    19. Johnson, Paul, 1996. "The Assessment: Inequality," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 12(1), pages 1-14, Spring.
    20. repec:bla:econom:v:58:y:1991:i:232:p:501-14 is not listed on IDEAS
    21. David Card, 1992. "The Effect of Unions on the Distribution of Wages: Redistribution or Relabelling?," NBER Working Papers 4195, National Bureau of Economic Research, Inc.
    22. Machin, Stephen, 1996. "Wage Inequality in the UK," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 12(1), pages 47-64, Spring.
    23. Jill Rubery, 1997. "Wages and the Labour Market," British Journal of Industrial Relations, London School of Economics, vol. 35(3), pages 337-366, September.
    24. Richard B. Freeman, 1991. "How Much Has De-Unionisation Contributed to the Rise in Male Earnings Inequality?," NBER Working Papers 3826, National Bureau of Economic Research, Inc.
    25. Nolan, Peter & Brown, William, 1983. "Competition and Workplace Wage Determination," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 45(3), pages 269-287, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. William Brown & Paul Ryan, 2003. "The Irrelevance of Trade Union Recognition? A Comparison of Two Matched Companies," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 6(3), pages 383-408, September.
    2. Damian Grimshaw, 2010. "United Kingdom: Developing a Progressive Minimum Wage in a Liberal Market Economy," Chapters, in: Daniel Vaughan-Whitehead (ed.), The Minimum Wage Revisited in the Enlarged EU, chapter 14, Edward Elgar Publishing.
    3. Zagelmeyer, Stefan, 2003. "Die Entwicklung kollektiver Verhandlungen in Großbritannien: ein historischer Überblick," Discussion Papers 17, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jeff Borland, 2000. "Economic Explanations of Earnings Distribution Trends in the International Literature and Application to New Zealand," Treasury Working Paper Series 00/16, New Zealand Treasury.
    2. Frank Scharr, 2005. "Tarifbindung, Rententeilung und Konzessionsverträge als Einflussgrößen der Lohnhöhe in Unternehmen : eine Untersuchung mit Mikrodaten für thüringische Firmen," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 39.
    3. John H. Pencavel, 2004. "The Surprising Retreat of Union Britain," NBER Chapters, in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980–2000, pages 181-232, National Bureau of Economic Research, Inc.
    4. Fei Peng & Lili Kang, 2013. "Labor Market Institutions and Skill Premiums: An Empirical Analysis on the UK, 1972-2002," Journal of Economic Issues, Taylor & Francis Journals, vol. 47(4), pages 959-982.
    5. Seppo Honkapohja & Frank Westermann, 2009. "Pay-setting Systems in Europe: Ongoing Developments and Possible Reforms," Palgrave Macmillan Books, in: Seppo Honkapohja & Frank Westermann (ed.), Designing the European Model, chapter 3, pages 82-121, Palgrave Macmillan.
    6. Haile, Getinet Astatike, 2012. "Union Decline in Britain: Is Chauvinism Also to Blame?," IZA Discussion Papers 6536, Institute of Labor Economics (IZA).
    7. Pull, Kerstin, 1996. "Übertarifliche Entlohnung : ein Ergebnis vorweggenommener Verhandlungen (Wages above the collectively agreed level: a result of anticipated negotiations)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 29(4), pages 607-615.
    8. Barrett, Alan & FitzGerald, John & Nolan, Brian, 2002. "Earnings inequality, returns to education and immigration into Ireland," Labour Economics, Elsevier, vol. 9(5), pages 665-680, November.
    9. S. Dobbelaere, 2003. "Ownership, Firm Size and Rent Sharing in a Transition Country," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/170, Ghent University, Faculty of Economics and Business Administration.
    10. Alan Carruth & Bill Collier & Andy Dickerson, 1999. "Inter-industry Wage Differences and Individual Heterogeneity: How Competitive is Wage Setting in the UK?," Studies in Economics 9914, School of Economics, University of Kent.
    11. Dobbelaere, Sabien, 2004. "Ownership, firm size and rent sharing in Bulgaria," Labour Economics, Elsevier, vol. 11(2), pages 165-189, April.
    12. Addison, John T. & Siebert, W. Stanley, 2002. "Changes in Collective Bargaining in the U.K," IZA Discussion Papers 562, Institute of Labor Economics (IZA).
    13. Blanchflower, D. & Oswald, A. & Garrett, M., 1988. "Insider Power In Wage Determination," Papers 319, London School of Economics - Centre for Labour Economics.
    14. François Rycx & Robert Plasman, 2001. "Collective bargaining and poverty: a cross-national perspective," ULB Institutional Repository 2013/795, ULB -- Universite Libre de Bruxelles.
    15. Pull, Kerstin, 1996. "Übertarifliche Entlohnung : ein Ergebnis vorweggenommener Verhandlungen (Wages above the collectively agreed level: a result of anticipated negotiations)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 29(4), pages 607-615.
    16. Battisti, Michele & Gatto, Massimo Del & Parmeter, Christopher F., 2022. "Skill-biased technical change and labor market inefficiency," Journal of Economic Dynamics and Control, Elsevier, vol. 139(C).
    17. Cristiano Perugini & Gaetano Martino, 2008. "Income Inequality Within European Regions: Determinants And Effects On Growth," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(3), pages 373-406, September.
    18. Verdugo, Gregory, 2014. "The great compression of the French wage structure, 1969–2008," Labour Economics, Elsevier, vol. 28(C), pages 131-144.
    19. H. Naci Mocan & Deborah Viola, 1997. "The Determinants of Child Care Workers' Wages and Compensation: Sectoral Differences, Human Capital, Race, Insiders and Outsiders," NBER Working Papers 6328, National Bureau of Economic Research, Inc.
    20. Stewart, Mark B, 1990. "Union Wage Differentials, Product Market Influences and the Division of Rents," Economic Journal, Royal Economic Society, vol. 100(403), pages 1122-1137, December.

    More about this item

    Keywords

    wage determination; collective bargaining; remuneration management; bargaining structure; income distribution; trade union effects; employer pay strategy;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbr:cbrwps:wp213. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ruth Newman (email available below). General contact details of provider: http://www.jbs.cam.ac.uk .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.