SOCB54H3 Lecture Notes - Lecture 6: Tim Hudak, Rand Formula, Closed Shop
Document Summary
How does management resist unionization: employees are made to fear the consequences or joining a union, threats to relocate plant internationally: the central of industrial manufacturing has. Large amount of income differential the public sector was able to create. Labor costs are lower than they are in canada, us, and uk. Dilemma of collective action: the free ride problem: an individual employee knows that union will benefit from my membership views, an individual employee also knows that one going to enjoy the benefits of union membership. So why bother: by creating benefits that are contingent upon membership. In the 19th century by offering life-insurance and funeral benefits. In the 20th century, by making union membership condition of the job. 70% of agreements in the private sector are resolved without strike. 90% of collective agreements in the public sector settled without strike.
