In The U.s. The Typical Duration Of A Collective Bargaining Agreement Is 1 Year

In addition to guaranteeing these functions for workers, collective bargaining is also a key instrument of market control, i.e. controlling wage competition between companies or, on the contrary, limiting the monopsony power of companies which, in some cases, may benefit from a lack of bargaining power of workers. It can encourage companies to invest in innovation if the existence of a trading environment prevents the possibility of increasing profits by simply reducing wages. On the other hand, economic theory argues that collective bargaining can cause market distortions (for example. B «rent-seeking behaviour») by strengthening the power of insiders, both workers (for example. B of full-time indeterminate workers) than companies (for example. B companies already active in the market). When it comes to workers, the logic is that unions are less likely to take external interests into account (. B, for example, less qualified, fixed-term or young or young/small businesses). However, empirical evidence supporting this theory is scarce. Studies based on the content of collective agreements show that the extent to which external concerns are taken into account does not depend on the composition of members (Benassi and Vlandas, 2016[2]).

Studies in Canada have shown that union wage premiums paid to women, Aboriginals, non-standard workers, young workers and new immigrants are actually much higher; While union wage premiums in Canada have declined overall over the past two decades, they have increased among women, non-standardized workers and young workers (Gomez and Lamb, 2016). Finally, it is found that the use of atypical workers (for example. B, temporary or temporary workers) is higher in some studies (Salvatori, 2009[4]), but not in others (grams and fast, 2001[5]; Author, 2003. Moreover, these associations, when observed, do not support the insider/foreign theory, as they do not differ between the effects of the union and management in hiring decisions. ← 3. Workers can register at the company level. In New Zealand, employers and unions can agree that the terms of collective agreements can be passed on to other workers or unions, including non-union members.