A study has found that companies with higher union densities (percentages of workers who are members of a union) correlated with “substantial increases” in productivity and wages.
The study, published in The Economic Journal, studied the economic impacts of union membership on private sector firms. It found that “increasing union density… leads to an increase in both productivity and wages”.
This flies in the face of conventional knowledge held by many companies and conservative propagandists that unions play a detrimental role in company productivity and economic growth.
The study gave a number of reasons as to why this correlation exists. One is that unions provide workers with a “voice” to management, resulting in better feedback mechanisms, increased worker satisfaction and longer tenures. Another is that union density incentivises companies to invest in their workforce, resulting in better training, equipment and wages.
The study recommended subsidised union memberships as a way of increasing productivity. This would come in the form of tax deductible union members and non-discrimination against union members and activists.
The NSW Nurses and Midwives’ Association is the union for nurses and midwives in NSW. You can join today to experience the benefits. [Read more…] about Unions lead to increased productivity and higher wages: study