On the Divergence of Unionism among Developed Countries

Richard Freeman

Chapter 12 in Labour Relations and Economic Performance, 1990, pp 304-322 from Palgrave Macmillan

Abstract: Abstract In this paper I explore the evolution of unionism in 1970s and 1980s when the post oil-shock world economy created a ‘crisis of unionism’ throughout the western world. I try to explain why union representation of work-forces fell in some countries but not in others and contrast union responses to the challenge of the period. I find that: 1. Rates of unionisation diverged greatly among developed countries (Section 2.1). 2. The composition of union members shifted from private sector blue-collar workers to public sector and white-collar workers in all countries, producing increased divisions within union movements by category of worker (Section 2.2). 3. Changes in the industrial composition of employment, changes in public attitudes toward unionism, and the growth of governmental protection of labour do not explain the divergence in density (Section 3.1). 4. Differing rates of inflation contributed to the divergence, with unions doing better in countries with high inflation. In addition, unemployment raised density in settings where unions disperse unemployment benefits (Section 3.2; Section 3.5). 5. The primary reason for the divergence are differences in the incentives and opportunities different industrial relations systems give employers to oppose unions. Unions fared best in neo-corporatist settings and worst in settings where decentralised bargaining creates a strong profit incentive for managers to oppose unions and where management is relatively free to act on that incentive (Section 3.3; Section 3.5). 6. Union organisations and modes of operating changed significantly in some countries with declining or endangered unionism but not it others (Section 3.4).

Keywords: Collective Bargaining; Industrial Relation; Union Membership; Union Density; Union Wage (search for similar items in EconPapers)
Date: 1990
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Working Paper: On the Divergence in Unionism among Developed Countries (1989)
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DOI: 10.1007/978-1-349-11562-4_12

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