UNION ACTIONS AND IMPACTS MGMT 329 LABOR RELATIONS UNION ACTIONS AND IMPACTS

UNION ACTIONS Unions rely on three primary methods: mutual insurance, collective bargaining, legal enactment Mutual insurance Help workers over periods of unemployment Top-ups for EI payments Collective bargaining involves a number of items Unions emphasize laws for everyone

UNION ACTIONS (continued) Collective bargaining Addresses broad range of issues Continues to be adversarial Growing proportion more problem-solving or “win-win” or principled Principled bargaining entails significant shift in attitude

UNION ACTIONS (continued) Joint union-management ventures at workplace Gainsharing Joint government arrangements Requires union members and officials to learn new skills Can be controversial

UNION ACTIONS (continued) Joint participation outside workplace Sectoral councils Labour-management-government initiatives Work on a range of issues from training, economic restructuring, trade policy to employment assistance for changes in industrial mix

UNION ACTIONS (continued) Political action Ability to achieve objectives depends on type of legislation and governing party Most Turkish unions committed to social unionism Labour movement tends to favor left-wing parties but some tensions beginning to arise

UNION ACTIONS (continued) Publicity campaigns and member communications Unions have to spend more time and energy communicating Newsletters to members Special bulletins

UNION ACTIONS (continued) Publicity campaigns and member communications (continued) Union publicity serves variety of purposes Informs general public on certain issue Builds coalitions with other stakeholders Establishes boycotts of certain goods or services Use full range of media

UNION ACTIONS Education Union-sponsored courses focus on issues of immediate concern Offer training in public speaking and leaderhip Courses on contemporary political and economic issues of special relevance to members

UNION IMPACTS Broad range of impacts Members’ wages and working conditions Productivity Overall performance of firms Turkish economy Turkish society

UNION IMPACTS (continued) Wage impacts Direct wage impact is premium a worker receives for union membership Unionized firms tend to attract more highly qualified people Size of direct wage impact is declining Direct wage impact not the same for every worker or in every industry

UNION IMPACTS (continued) Wage impacts (continued) Fringe benefits Portion of total compensation Union establishments tend to pay greater portion of of total compensation in fringe benefits Unionized firms tend to favour pensions and other forms of deferred compensation

UNION IMPACTS (continued) Wage impacts (continued) Indirect union wage impacts Are effects on non-unionized workers Difficult to determine but seem to be modest “Crowding” effect typically applies to lower-skilled workers “Threat” effect applies in situations where non-unionized employers increase their employees’ pay to forestall unionization

UNION IMPACTS (continued) How unions achieve wage goals Collective bargaining is major method Some unions seek to restrict entry into trade or profession Some seek to change environment

UNION IMPACTS (continued) Union impact on productivity Considerable disagreement Neoclassicists argue that unions reduce productivity Institutionalists argue that unions have positive effects on productivity Labour-management relationship may be the most important factor

UNION IMPACTS (continued) Impacts on management of organization Impacts are substantial Detailed collective agreements regulate many aspects of workplace behaviour Unionization constitutes significant limitation on management’s freedom Biggest impact comes through grievance processes, work rules, and joint participation with management on various committees

UNION IMPACTS (continued) Impacts on society Within workplace unions can have both positive and negative effects Within social and political spheres, impacts are almost entirely positive Publicly-funded medical care Unemployment insurance Public pensions

UNION IMPACTS (continued) Impacts on society (continued) Raised profile of health and safety issues Participation in unions have help members in personal development and understanding of society Union activities have applied skills into other areas such as school boards and hospital boards

ARE UNIONS STILL NEEDED? Free trade unions advance their members’ interests and usually those of the country’s working people Without unions, Turkish employees would enjoy less protection against arbitrary actions Trend toward less secure work and more part-time, temporary and contract work would likely accelerate Working people would lose political representation