Unions and Workplace Performance in Britain and France

Publication date: 20 Mar 2009 | Publication type: NIESR Discussion Paper | Theme: Trade, Investment & Productivity, Employment & Social policy | NIESR Author(s): Bryson, A; Forth, J | External Author(s): Laroche, P. | JEL Classification: J51; L25 | NIESR Discussion Paper Number: 327

Using nationally representative workplace surveys we examine the relationship between unionization and workplace financial performance in Britain and France. We find that union bargaining is detrimental to workplace performance in Britain and that this effect is larger when unionization is endogenized. In France, union bargaining is associated with poorer workplace performance but the effect disappears once unionization is treated as endogenous. However, high levels of union density do have a negative impact on workplace performance in France. In Britain the union effect does not rise with union density.

Keyword tags: 
trade union, firm performance, France, Britain