Do Unions Impede or Accelerate Structural Adjustment? Industrial versus Company Unions in an Industrialising Labour Market

Guy Standing

Cambridge Journal of Economics, 1992, vol. 16, issue 3, 327-54

Abstract: Trades unions potentially have both beneficial and adverse effects for workers and for employing enterprises. In recent supply-side "structural adjustment" strategies, particularly in developing countries, it has been widely presumed that unions have adverse effects and constitute a major source of "market distortion" and labor market rigidity. This paper, based on a survey of nearly 3,000 industrial enterprises in Malaysia, examines this proposition empirically, considering a wide range of possible effects. It considers whether workers and/or employers should prefer to avoid unions or to have independent industrial unions or "company unions." Copyright 1992 by Oxford University Press.

Date: 1992
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