The Consequences of Job Insecurity for Employers and Unions: Exit, Voice and Loyalty

Abstract

Although job insecurity has received growing recognition in connection with the transformation of working life, little is known about how unionization affects its consequences. This study addresses how unionized workers cope with job insecurity and examines the extent to which they respond with reactions of exit, voice and loyalty. Of special interest is whether such reactions tend to affect primarily the employer or the union. Survey data from four European countries (Belgium, Italy, the Netherlands and Sweden) suggest that job insecurity is primarily related to exit and loyalty reactions, but not to voice. The results replicate previous findings of adverse effects of job insecurity on organizational loyalty and employees' propensity to turnover from the job. Although the findings were less consistent across countries with respect to union-related outcomes, the study suggests that job insecurity may lead to reduced union loyalty and withdrawal from union membership.