Transcription of Effect of Collective Bargaining on Strikes and Wages
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Effect of Collective Bargaining on Strikes and Wages
Forthcoming Review of Economics and Statistics, 1999. The Effect of Collective Bargaining Legislation on Strikes and Wages Peter Cramton, Morley Gunderson, and Joseph Tracy*. University of Maryland, University of Toronto, and Federal Reserve Bank of NY. 25 May 1999. Abstract Using Canadian data on large, private-sector contract negotiations from January 1967 to March 1993, we find that Strikes and Wages are substantially influenced by labor policy. The data indicate that conciliation policies have largely been ineffective in reducing strike costs. In contrast, general contract reopener provisions appear to make both unions and employers better off by reducing negotiation costs without systematically affecting wage settlements. Legislation banning the use of replacement workers appears to lead to significantly higher negotiation costs and redistribution of quasi-rents from employers to unions. *We have benefitted from comments by two referees and seminar participants at Johns Hopkins University, Stanford University, the University of Maryland, the University of Montreal, and the University of Wisconsin.
Introduction In this paper, we investigate the effect that collective bargaining legislation has on strike incidence, strike duration, and wage outcomes.
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