From monopoly to voice effects? British workplace unionism and productivity performance into the new millennium

Abstract

AbstractBritain has featured prominently in debates about unionism and productivity. This article suggests a recent revolution in the productivity effect of British unionism. A thorough review of extant evidence at various levels of aggregation indicates that whatever the broader cost to employee welfare and well‐being, the hollowing and erosion of workplace unionism under Thatcherism delivered a one‐off productivity dividend. However, by the turn of the millennium, extant Workplace Employment Relations Survey (WERS) analysis shows that workplace unionism, where it remained, was no longer robustly linked to poorer productivity performance. Our private sector analysis of WERS2011 confirms this, while our analysis of the WERS2004–2011 panel indicates that stronger workplace unionism now positively promotes private sector productivity. A thorough contemplation of the shifting concomitants of modern British unionism suggests a variety of processes which may underlie our striking panel findings, underscoring the suggestion that there has been a revolution in British unionism's productivity implications, but also indicating mechanisms which may underlie positive productivity effects of joint regulation already apparent in other countries.