COMMERCE 4BC3 Lecture Notes - Lecture 10: Employee Benefits, Institute For Operations Research And The Management Sciences, Joint Committee

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 4BC3
• Professor: Philip Rose

Document Summary

Union power & market conditions affect the ability of union to garner pay increases for their memb. Internal power: the power of a union to fulfill its goals depends on a consensus within the union (leadership. & rank-and-file members) about those goals and from other unions and affiliated bodies. Jurisdictional disputes, rank-and-file discontent with unions leadership and rivalry within the membership can prevent the bringing together/marshalling of power. External power and elasticity of demand for labour. Includes the determinants of elasticity of demand related to substitute products, substitute inputs and labour costs as a proportion of total costs: substitute products. This occurs under the following circumstances: product is advertised through union label if the i(cid:374)dust(cid:396)(cid:455) is i(cid:374) de(cid:272)li(cid:374)e so that (cid:374)e(cid:449) (cid:374)o(cid:374)-union firms are not entering. Restrictive work practices (featherbedding rules unions establish a requirement for the use of excess amounts of union labour) are designed to prevent the substitution of other inputs for union labour.