Do workers perceive high wage settlements of craft unions as fair?

Christian Pfeifer, Gesine Stephan, Matthias Dütsch and Olaf Struck

Applied Economics Letters, 2017, vol. 24, issue 15, 1093-1096

Abstract: In recent years, Germany has experienced an increasing impact of craft unions that negotiate high wage increases for the occupations they represent. This article analyses under which conditions workers perceive such over-proportional wage increases for occupational groups represented by craft unions as (rather) fair. We use a vignette approach, asking respondents for their fairness perceptions of several hypothetical scenarios. The results show that perceptions depend on the burdens of the occupational group, the size of the wage increase, information policies and potential consequences for other groups. These findings are in line with social and organizational justice theories about equity and informational justice.

Date: 2017
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DOI: 10.1080/13504851.2016.1257207

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