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Unions

Workplace Issues / Unions

Unions lead to increased productivity and higher wages: study

Lamp Editorial Team
|
May 18, 2020

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. 

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Comments

  1. Peggy Nyambe says

    May 24, 2020 at 1:10 pm

    I worked for a nursing agency which pays RN over 19years experience in Australia as RN 5.
    They don’t pay penalties, in charge of over 100 residents facilities,do not pay after noon and night duty penalties.
    Employes AINs who do not speak English making it difficult to understand directives from and communication is very difficult with residents, residents are distressed because of language barrier.
    Allowing their AINs to work three to four days continusly without 8hours break in between shifts.
    Accommodation of male and female staff in one three bedroom house with one toilet and bath tab and shower.

    Reply

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