How Unions Affect Productivity in Manufacturing Plants

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Abstract
This study investigates several hypotheses as to how unions may affect productivity. Analysis of data from 46 manufacturing plants for 1982 indicates a negative union impact on productivity. The author finds evidence suggesting that unions reduce the effectiveness of some managerial practices undertaken to increase productivity, and that a poor labor-management relations climate also reduces productivity. These two factors account for almost 50 percent of the negative union impact.

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