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Signals and Cycles Productivity Growth and Changes in Union Status in British Companies

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  • Paul Gregg
  • Stephen Machin
  • David Metcalf

Abstract

Productivity growth in 329 companies (total employment = 1.96 million workers) is analysed for the period 1984-1989. The study breaks new ground by (i) analysing the impact of changes in union status - such as repudiation of a closed shop or derecognition - on productivity growth; (ii) examining the impact of interactions among product market and industrial relations variables on companies' productivity changes; (iii) including companies in the service sector as well as in manufacturing. The results suggest no difference in productivity growth between union and non-union companies over the years 1984-7. But in 1988 and 1989 unionised companies experienced faster productivity growth than their non-union counterparts. This wedge in productivity growth over non-union companies was twice as large in companies where there had been a diminution in union status compared with companies where union status was unchanged. The results probably reflect both the signal that management has (re-)asserted its prerogatives and cycles in union effects shaped by the intertemporal behaviour of the economic cycle.

Suggested Citation

  • Paul Gregg & Stephen Machin & David Metcalf, 1991. "Signals and Cycles Productivity Growth and Changes in Union Status in British Companies," CEP Discussion Papers dp0049, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp0049
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    Cited by:

    1. David Metcalf, 1993. "Transformation of British Industrial Relations? Institutions, Conduct and Outcomes 1980-1990," CEP Discussion Papers dp0151, Centre for Economic Performance, LSE.
    2. John T. Addison & Joachim Wagner, 1994. "UK Unionism and Innovative Activity: Some Cautionary Remarks on the Basis of a Simple Cross-country Test," British Journal of Industrial Relations, London School of Economics, vol. 32(1), pages 85-98, March.

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