Union Wage Determination in Canadian and U.S. Manufacturing, 1964-1990: A Comparative Analysis

ILR Review ◽  
1996 ◽  
Vol 49 (4) ◽  
pp. 673 ◽  
Author(s):  
John W. Budd
ILR Review ◽  
1992 ◽  
Vol 45 (3) ◽  
pp. 507-522 ◽  
Author(s):  
Christopher L. Erickson

This study of wage bargaining in the aerospace industry focuses particularly on lump sum bonuses, one-time cash disbursements that generally accompany lower increases in the base wage than were formerly standard. Although such bonuses, which appeared in aerospace companies before they appeared in other large manufacturing industries, were viewed as a union concession, they persisted into the 1989 bargaining round despite a sharp upturn in the fortunes of the most prominent aerospace company. The author regards that fact, as well as the weakening of both inter- and intra-industry pattern bargaining, as support for the view that a significant shift in union wage determination occurred in the 1980s. He argues, however, based on interviews with managers, union officials, and workers, that consensus has not yet been achieved on the meaning of this shift.


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.


ILR Review ◽  
1982 ◽  
Vol 36 (1) ◽  
pp. 3-21 ◽  
Author(s):  
Richard B. Freeman

This study analyzes establishment-level data primarily to examine the effect of unionism on the wage structure within establishments. The major finding is that within-establishment dispersion of wages is significantly narrower in unionized than in nonunionized establishments, a pattern the author attributes in large part to unions' wage practices, such as single rate or automatic-progression modes of wage payment as opposed to merit reviews and individual wage determination. The data also show that dispersion in average wages is narrower among organized plants, but by more modest amounts than the within-establishment differential. Overall, the evidence suggests a major role for explicit union wage policies in explaining the dispersion of wages within firms and in the economy as a whole.


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.


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