Real Wage Determination and Rent-Sharing in Collective Bargaining Agreements

1992 ◽  
Vol 107 (3) ◽  
pp. 985-1002 ◽  
Author(s):  
L. N. Christofides ◽  
A. J. Oswald
2018 ◽  
Vol 43 (1-2) ◽  
pp. 78-87 ◽  
Author(s):  
Vanita Ahlawat ◽  
Renu

India is one of the largest textile producers in the world. Textile industry is huge employment-providing industry after agriculture in India. The present article is an attempt to analyse first, the growth and composition of employees engaged in textile industry in India. Second, to find the growth and relation between employments, man-days employed, wages and net value added (NVA) by textile industry in India. And lastly, the impact of labour productivity in wage determination is also analysed. The results suggested that there is huge gender disparity in employment, that is, women are very few in comparison to men workers. Overall employment in textile has an increasing trend among both categories of textile industry. Further, spinning, weaving and finishing of textile manufacturing is growing faster than manufacturing of other textiles. Employment in textile industry has a positive and significant correlation with real wage rates in both categories of industries. This indicates that increase in real wage rate causes enhancement in employment in textile manufacturing. And further results suggest that labour productivity is a significant determinant of wage rate of textile employees.


1983 ◽  
Vol 25 (4) ◽  
pp. 78-92 ◽  
Author(s):  
Daniel J. B. Mitchell

Arguments that 1982 marked a turning point in union wage determination are overstated. While dramatic wage and other concessions were made during the 1982 collective-bargaining round—wage freezes were the most common type of concession, but absolute cuts were made in some wage levels—cuts and freezes touched only a small proportion of the contracts negotiated, and concession contracts themselves preserved the principles of multiyear duration and cost-of-living escalation. Some of the income security arrangements conceded by management in exchange for wage cuts or freezes will endure, and gain sharing could become a significant factor in wage determination if it is continued and becomes more widespread.


2011 ◽  
Vol 01 (05) ◽  
pp. 63-70
Author(s):  
Anyim C. Francis ◽  
Elegbede Tunde ◽  
Mariam A. ◽  
Gbajumo Sheriff

The objective of this paper is to examine the dynamics of collective bargaining machinery in both the public and private sectors in Nigeria; with a view to bringing to the fore the peculiarities associated with both sectors with regard to the practice of bargaining. To achieve this objective, the paper adopts a theoretical approach. The author observes that the practice of industrial relations as a discipline and that of collective bargaining in particular emanated from the private sector the world over. Thus, much of the practices of public sector collective bargaining are modelled after the private sector collective bargaining. However, in Nigeria, the obverse is the case as collective bargaining gained its root in the public sector owing to the near absence of private sector at the turn of the century. However, in Nigeria, the public sector pays lip-service to the collective bargaining machinery. Governments at all levels (Federal, State and Local) have continued to set aside collective bargaining and to give wage awards to score political points in spite of its commitment to the ILO Convention 98 to freely bargain with workers. The State or the government in the course of regulating wages and employment terms and conditions revert to the use of wage commissions. Thus, wage determination is by fiat. This preference for wage commissions can at best be regarded as a unilateral system as collective bargaining is relegated to the background.Wage tribunals or commissions offer little opportunity for workers’ contribution in the determination of terms and conditions of employment and can hardly be viewed as bilateral or tripartite. Thus, the State preference for wage commissions is anti-collective bargaining. In spite of Nigeria’s commitment to Conventions of the ILO with particular reference to such Conventions as 87 of 1948 and 98 of 1949 which provide for freedom of association and the right of workers to organize and bargain collectively. Thus, the use of wage commissions is antithetical to collective bargaining.


ILR Review ◽  
1996 ◽  
Vol 49 (4) ◽  
pp. 673-689
Author(s):  
John W. Budd

The author analyzes nominal and real wage changes in unionized manufacturing firms in Canada and the United States over the years 1964–90. He finds more differences between the countries' patterns of wage determination in the years 1964–79 than have commonly been recognized. In the 1980s, the nominal wage determination structure changed more sharply in the United States than in Canada. Real wage determination changed little in the United States before 1986, while after 1986 observed real wage growth was significantly smaller than what would have been predicted based on patterns of bargaining in earlier years. In Canada, real wages in the 1980s were significantly higher than they would have been if the previous patterns of wage determination had persisted. Both the nominal and real wage change results suggest that unions in U.S. manufacturing fared poorly in wage bargaining in the 1980s by comparison with their Canadian counterparts.


1988 ◽  
Vol 48 (2) ◽  
pp. 387-399 ◽  
Author(s):  
Daniel M.G. Raff

This paper examines the five-dollar day compensation policy instituted by the Ford Motor Company in 1914 in light of recent developments in wage-determination theory. The new wage was above the opportunity cost of the labor employed. Yet various efficiency wage theories, by which high wages increase output, are shown to provide an implausible explanation. The particular (and epochal) technical change that occurred at Ford and the attitudes and beliefs of relevant actors suggest instead a rent-sharing theory driven by the threat of collective action by labor. This confluence, not the money, marks the episode as a watershed.


1980 ◽  
Vol 22 (3) ◽  
pp. 249-263 ◽  
Author(s):  
Keith Norris

Despite the growth of collective bargaining the Australian system of wage determination remains significantly different from that practised elsewhere. The purpose of the paper is to test the claim that compulsory arbitration brings about a more egalitarian wage structure than would obtain under free collective bargaining. The method used is to compare wage relativities in Australia and Britain on a number of different bases, and where possible at different times. The main conclusion is that wage structures are very similar in the two countries. Four main differences are identified; in Australia skill differentials widened to a much lesser extent in the inter-war years, the move towards equal pay for women was more rapid, there are one or two low paying in dustries where pay is closer to the average than in Britain, and the relative pay of managers and professional workers is lower. The latter effect cannot be attributed to arbitration but the other cases may be. In general, given the over all similarity of wages relativities in the two countries, the author concludes that the evidence does not support the claim of egalitarianism made for com pulsory arbitration.


Author(s):  
Gürdal Aslan

This study provides information on wage floor determining institutions, the statutory minimum wages, and collective bargaining agreements, in the EU countries to examine differences and commonalities of these institutions between the EU countries and Turkey. The interaction between these institutions and the labor market performance of the EU Member States and Turkey is also investigated. Therefore, the minimum wage levels and the collective bargaining coverage with the labor market indicators, namely the wage inequality measured with D1/D9 ratio and the incidence of low-wage workers, are compared. Findings indicate that the wage inequality and the incidence of low-wage workers are relatively lower in the countries with comprehensive collective bargaining systems characterized by high rates of collective bargaining coverage and union density. Turkey is one of the countries with the highest wage inequality compared to the EU countries. Improving the coverage rate of collective bargaining might help to reduce wage inequality.


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