scholarly journals Union Bargaining Power and Product Innovation: Relevance of the Preference Function

2014 ◽  
Author(s):  
Debasmita Basak ◽  
Andreas Hoefele ◽  
Arijit Mukherjee
2021 ◽  
Vol 27 (1) ◽  
pp. 29-46
Author(s):  
Maarten Keune

In the context of rising inequality between capital and labour and among wage-earners in Europe, this state-of-the-art article reviews the literature concerning the relationship between collective bargaining and inequality. It focuses on two main questions: (i) what is the relationship between collective bargaining, union bargaining power and inequality between capital and labour? and (ii) what is the relationship between collective bargaining, union bargaining power and wage inequality among wage-earners? Both questions are discussed in general terms and for single- and multi-employer bargaining systems. It is argued that collective bargaining coverage and union density are negatively related to both types of inequality. These relationships are however qualified by four additional factors: who unions represent, the weight of union objectives other than wages, the statutory minimum wage, and extensions of collective agreements by governments.


ILR Review ◽  
1983 ◽  
Vol 36 (3) ◽  
pp. 447-460 ◽  
Author(s):  
Wallace E. Hendricks ◽  
Lawrence M. Kahn

This study investigates, for the period 1969–81, the determinants of the incidence and strength of cost-of-living adjustment (COLA) clauses in U.S. manufacturing and the effect of those clauses on wage inflation. The sample includes approximately 5,570 union contracts in over 2,600 bargaining relationships. The authors find that both union bargaining power and inflation uncertainty positively affected the probability that a COLA clause was adopted as well as the strength of the clause adopted. Negatively influencing the incidence and strength of COLA clauses during the period studied were unanticipated changes in an industry's prices. The authors also find evidence that wage inflation was greater under contracts with uncapped COLAs than under all other contracts, a result that also was positively influenced by the amount of unanticipated inflation. From these results, the authors suggest a number of possible trends in the use and effects of COLA clauses.


2011 ◽  
Vol 15 (04) ◽  
pp. 687-707 ◽  
Author(s):  
JEROEN P. J. DE JONG

This paper explores the complex relationship between competition and innovation by analyzing survey data of 2,281 small and medium-sized enterprises (SMEs) in the Netherlands. We develop and test hypotheses on the relationships between three dimensions of perceived competition (internal rivalry, supplier power and buyer power) and firms' intentions to engage in product and process innovation. Moreover, we analyze if firms' strategic attention for innovation is a moderating variable. We find that specific innovative intentions relate to different perceptions of competitive forces. Intentions to engage in process innovation correlate with the perceived bargaining power of suppliers, while intended product innovation correlates with perceived buyer power and internal rivalry between incumbent firms in the market — but the correlation with internal rivalry is significant only when firms report no strategic attention for innovation.


ILR Review ◽  
1983 ◽  
Vol 36 (2) ◽  
pp. 214-229 ◽  
Author(s):  
Peter Navarro

In examining the bargaining record of the coal industry since the mid-19405, this paper demonstrates that union power in this industry has fluctuated considerably over the years and then describes the reasons for that fluctuation. The author argues that the level of coal consumption has had a consistently strong effect on the balance of bargaining power throughout the postwar period and that industry profits have also influenced settlements, but to a lesser extent. In recent negotiations, the most important power factor has been the sharp decline in the percentage of coal produced by mines covered by UMW contracts. In addition, not only has pre-strike stockpiling by major consumers blunted the union's strike weapon, but also the weakness of union leadership in recent years has helped to precipitate and prolong strikes. Only the evidence on the union's democratic contract ratification procedure, adopted in 1973, is mixed: although providing a slight strategic advantage to the union on occasion, it has also led to confusion at the bargaining table and contributed to the weakness of the leadership. The author also illustrates the importance of including rule changes in measuring union power.


Author(s):  
Walter Grills

The abolition of compulsory arbitration means that bargaining power will be essential to achieve superior settlements. Workers will be attracted to stronger unions and there will be ,a change in union structure. The dismantling of the welfare state will mean that workers will come to depend on union bargaining power for protection. The objects of unions and the subject matter of bargaining are no longer restricted, and the union can insist that the employer provide security which was formerly provided by the state. Restructuring the union movement as promoted by the Labour Relations Act will not in the long run lead to greater wage flexibility. Unions will remain occupationally based, and will be parties to occupationally based awards which do not accommodate the economic circumstances of individual industries or employers. There will be a smaller number of more powerful unions holding the national award structure together through bargaining power, rather than by the force of the Arbitration Commission's reasoning.


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