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Employer Behavior in the Face of Union Organizing Drives

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  • Richard B. Freeman
  • Morris M. Kleiner

Abstract

The direct role of employers in union organizing has long been a neglected part of the union organizing literature. In this study we examine the determinants and consequences of employer behavior when faced with an organizing drive. Our principal substantive findings are: - that there is a substitution between high wages/benefits/good work conditions/supervisory practices and "tough" management opposition to unionism. - that a high innate propensity for a union victory deters management opposition, while some indicators of a low propensity also reduce opposition. - that "positive industrial relations" raise the chances the firm will defeat the union in an election, as does bringing in consultants and having supervisors campaign intensely against the union. - that the careers of managers whose wages/supervisory practices/ benefits lead to union organizing drives, much less to union victories, suffer as a result. In general we interpret our results as consistent with the notion that firms behave in a profit maximizing manner in opposing an organizing drive and with the basic proposition that management opposition, reflected in diverse forms of behavior, is a key component in the on-going decline in private sector unionism in the United States.

Suggested Citation

  • Richard B. Freeman & Morris M. Kleiner, 1988. "Employer Behavior in the Face of Union Organizing Drives," NBER Working Papers 2805, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:2805
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    Cited by:

    1. Cynthia Estlund, 2007. "The Ossification of American Labor Law and the Decline of Self-governance in the Workplace," Journal of Labor Research, Springer, vol. 28(4), pages 591-608, September.
    2. Rebitzer, James B., 1994. "Structural, Microeconomic and Institutional Explanations for Union Decline in the United States," Economic Review, Hitotsubashi University, vol. 45(1), pages 41-52, January.
    3. Cassandra M.D. Hart & Aaron J. Sojourner, 2015. "Unionization and Productivity: Evidence from Charter Schools," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(3), pages 422-448, July.
    4. Alex Bryson & Richard Freeman & Rafael Gomez & Paul Willman, 2017. "The Twin Track Model of Employee Voice: An Anglo-American Perspective on Union Decline and the Rise of Alternative Forms of Voice," DoQSS Working Papers 17-13, Quantitative Social Science - UCL Social Research Institute, University College London.
    5. J. Ryan Lamare & Patrick Gunnigle & Paul Marginson & Gregor Murray, 2013. "Union Status and Double-Breasting at Multinational Companies in Three Liberal Market Economies," ILR Review, Cornell University, ILR School, vol. 66(3), pages 696-722, May.
    6. Okamoto, Hisashi & Matsuura, Tsukasa, 2015. "The Influence of Corporate Governance on Long-term Employment:A Study Using Data on Japanese Listed Firms," MPRA Paper 64561, University Library of Munich, Germany.
    7. Marco de Pinto & Jochen Michaelis, 2017. "Firm Selection and the Role of Union Heterogeneity," MAGKS Papers on Economics 201743, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    8. Ruiz-Verdu, Pablo, 2007. "The economics of union organization: Efficiency, information and profitability," Labour Economics, Elsevier, vol. 14(5), pages 848-868, October.
    9. Palley, Thomas I. & LaJeunesse, Robert M., 2007. "Social attitudes, labor law, and union organizing: Toward a new economics of union density," Journal of Economic Behavior & Organization, Elsevier, vol. 62(2), pages 237-254, February.
    10. Eisenbarth, Anthony & Chen, Zhou Fu, 2022. "The evolution of wage inequality within local U.S. labor markets," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 56, pages 1-2.
    11. John Kallas & Dongwoo Park & Rachel Aleks, 2023. "Breaking the deadlock: How union and employer tactics affect first contract achievement," Industrial Relations Journal, Wiley Blackwell, vol. 54(3), pages 223-241, May.
    12. Gomez, Rafael & Tzioumis, Konstantinos, 2006. "What do unions do to executive compensation?," LSE Research Online Documents on Economics 19865, London School of Economics and Political Science, LSE Library.
    13. Corneo, Giacomo, 1995. "Social custom, management opposition, and trade union membership," European Economic Review, Elsevier, vol. 39(2), pages 275-292, February.
    14. de Pinto, Marco & Michaelis, Jochen, 2019. "The labor market effects of trade union heterogeneity," Economic Modelling, Elsevier, vol. 78(C), pages 60-72.
    15. Robert Hickey & Sarosh Kuruvilla & Tashlin Lakhani, 2010. "No Panacea for Success: Member Activism, Organizing and Union Renewal," British Journal of Industrial Relations, London School of Economics, vol. 48(1), pages 53-83, March.
    16. Aobdia, Daniel & Cheng, Lin, 2018. "Unionization, product market competition, and strategic disclosure," Journal of Accounting and Economics, Elsevier, vol. 65(2), pages 331-357.
    17. Adamson, Dwight W. & Partridge, Mark, 1994. "The Influence of International on Union Firm Hiring and Worker Union Choice," Economics Staff Papers 232237, South Dakota State University, Department of Economics.
    18. Richard Disney & Amanda Gosling & Stephen Machin, 1994. "British Unions in Decline: An Examination of the 1980s Fall in Trade Union Recognition," NBER Working Papers 4733, National Bureau of Economic Research, Inc.
    19. David Peetz, 2010. "Are individualistic attitudes killing collectivism?," Transfer: European Review of Labour and Research, , vol. 16(3), pages 383-398, August.
    20. Ruiz-Verdú, Pablo, 2002. "Employer behavior when workers can unionize," DEE - Working Papers. Business Economics. WB wb020803, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    21. COZZI, Guido & TAROLA, Ornella, 2004. "Mergers, innovation, and inequality," LIDAM Discussion Papers CORE 2004006, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    22. Mareschal, Patrice M., 2017. "Public Sector Labour Relations in the United States: Austerity, Politics and Policy [Arbeitsbeziehungen des öffentlichen Sektors in den Vereinigten Staaten: Austerität, Politics und Policy]," Industrielle Beziehungen. Zeitschrift für Arbeit, Organisation und Management, Verlag Barbara Budrich, vol. 24(4), pages 450-471.

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