The Effect of Union Voices on Productivity

Abstract

This chapter investigates whether or not unions raise productivity through the voice of unions. In particular, we are concerned with union participation in management, information-sharing between management (i.e., firm) and unions, QC circles and some other forms. We examine whether these items contribute to increasing productivity in a firm. Chapter 7 investigated whether or not there is any difference between unionized firms and non-unionized firms regarding productivity. This chapter is concerned with the following institutional questions: whether or not participation of unions in management, and information-sharing between management and unions, are effective for raising management efficiency (i.e., productivity), given that unionized firms have higher productivity than non-unionized firms as was verified in Chapter 7. This chapter attempts to investigate the mechanism which produced such management efficiency, and the role of unions in this mechanism.