unions and collective bargaining
First, unions and collective bargaining have real economic effects on diverse nonwage variables, which cannot be explained either in price-theoretic responses to union wage effects or attributed to our econometric experiments’ poor quality. The recent outpouring of empirical studies on the impact of collective bargaining on the economy has provided us with a large body of new evidence regarding differences between union and nonunion workers and union and nonunion enterprises along many dimensions other than rates of pay.
Second, we find that while sensitivity analyses of single-equation results and longitudinal experiments provide valuable checks on cross-sectional findings, multiple-equations approaches produced results that are too sensitive to small changes in models or samples to help resolve the questions of concern. A significant piece of the new work on union effects has been concerned with the composition and distribution of compensation.
Concerning fringe benefits, recent analyses have demonstrated that the union fringe effect is more significant in percentage terms than the union wage effect. Ita from the 1968,1970, and 1972 EEC indicate, for example, that holding constant the characteristics in employees’ establishments, blue-collar workers covered by collective bargaining received fringe benefits that were about 28to36percent higher than those of blue-collar workers who were not covered compared to a union wage advantage of 8to15 percent. For workers receiving the same total compensation per hour, the fringe share of labor cost was markedly higher in the union setting. Looking at separate fringes, the most significant union/nonunion percentage differentials on a per hour basis are for pensions, life, accident and health insurance, and vacation pay.
Finally, based on these findings, we conclude that the search for an understanding of what unions do requires more than the standard price theoretic “monopoly” model of unionism. New and old perspectives based on institutional or industrial relations realities, contractarian or property rights theories, or other potential sources of creative views are also needed.
Q4
Collective bargaining is an essential way of establishing equitable salaries and working conditions for employers and their organizations and trade unions. It also lays the foundation for good working interactions. Typical problems included pay, working hours, training, employment and safety, and equal treatment on the negotiating agenda. The purpose of these talks is to reach a collective agreement governing working conditions. To ensure harmonious, productive industries and workplaces, collective agreements may also address the rights and duties of those parties. Enhancing the inclusiveness of collective bargaining and collective agreements is a critical means for reducing inequality and extending labor protections.
As set out in the agreement, the enterprise agreement between one or more employers of the national system and their employees. The parties negotiate business agreements, primarily at company level, through collective bargaining in good faith. Under the Fair Work Act 2009, any business, activity, project or initiative can be considered by a company. An enterprise agreement is an agreement about permitted matters which are: terms about the relationship between each employer and the employees covered by the agreement; terms about the relationship between each employer and any employee organizations (e.g. a trade union) who will be covered by the agreement and the deductions from wages for any purpose authorized by an employee covered by the contract how the agreement will operate.
The terms and conditions of the enterprise agreement following must be included: the nominal expiry date for an agreement not more than four years from the date of approval by the Fair Work Commission; the dispute settlement procedure that shall authorize either the Fair Work Commission or anyone else that is independent of any dispute settlement agreement.
However, the flexibility term should provide individual flexibility arrangements (IFAs) to satisfy the real needs of employers and employees. These are arrangements between an employer and a single employee which vary the operational function of the company contract concerning the employee, a term for consulting the employer, requiring his employees to discuss any significant changes to the place of work, which could have a substantial effect upon them. The model term consultation applies if no such term exists.