The Effect of Collective Bargaining Legislation on Strikes and Wages
Joseph S. Tracy
Federal Reserve Bank of New York; National Bureau of Economic Research (NBER)
University of Maryland - Department of Economics
University of Toronto - Department of Economics
Review of Economics and Statistics 1999
Using Canadian data on large, private-sector contract negotiations from January 1967 to March 1993, we find that strikes and wages are substantially influenced by labor policy. The data indicate that conciliation policies have largely been ineffective in reducing strike costs. In contrast, general contract reopener provisions appear to make both unions and employers better off by reducing negotiation costs without systematically affecting wage settlements. Legislation banning the use of replacement workers appears to lead to significantly higher negotiation costs and redistribution of quasi-rents from employers to unions.
JEL Classification: D82, J52, J58Accepted Paper Series
Date posted: March 17, 1999
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