COMMERCE 4BC3 Lecture Notes - Lecture 10: The Employer, Disability Insurance, Wrongful Dismissal
19 Feb 2020
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The overall impact of collective bargaining on wages, benefits etc. You can look at specific clauses and the language used in the collective agreement (next lecture) If wages are non-competitively high, it may not be socially efficient for the economy. Research suggests that in canada, higher wages do not impact employment. Impose inefficient work rules: this contributes to lower productivity, there is evidence of this; ex. Employers are able to do this through overtime: this is significant in longer strikes. This is the negative perspective of the impact of collective bargaining. This view suggests that the economic impact is negative, so unions are negatively impacting productivity. Corporations must manage better with a union present and need managers who implement best practices: provide valuable information to management on employee preferences, unions become the voice for the employees. In a non-unionized firm, each individual employee would have to be asked their preferences: unions become the channel for delivering feedback about management decisions.
