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Union Coverage, Membership and Performance-Related Pay: Are Piece Rates Different?

Published online by Cambridge University Press:  26 March 2020

Patrick O'Halloran
Patrick O'Halloran*
Affiliation:
Leon Hess Business School, Monmouth University
*
E-mail: pohallor@monmouth.edu
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Abstract

This paper revisits a literature on the links between unionisation and performance-related pay (PRP), which offers a disparate set of results. Part of the reason for this is the usual inability to distinguish between different types of PRP and the lack of rich panel data containing such measures. Analysis of panel data containing six separate PRP schemes reveals that union members are less likely to receive PRP in general and less likely to receive bonus payments, stock options, or profit sharing than non-members. Furthermore, profit sharing is negatively related to both union membership and coverage. However, union members or those covered by a union contract are more likely to be paid piece rates, providing further evidence that piece-rate pay differs from other forms of PRP.

Keywords

performance payunionspiece ratesJ33J51J53L2M52
Type
Research Articles
Information
National Institute Economic Review , Volume 226 , November 2013 , pp. R30 - R41
Copyright
Copyright © 2013 National Institute of Economic and Social Research

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Footnotes

I would like to acknowledge Dr John S. Heywood for his continued support and friendship.

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