Labor-Management Cooperation: Antecedents and Impact on Organizational Performance

Abstract

This study examines the antecedents and outcomes of labor-management cooperation. Data were drawn from 305 branches of a large unionized Australian-based multinational banking organization. The authors find that perceptions of a cooperative labor relations climate were positively influenced by procedural justice, the union's willingness to adopt an integrative approach to bargaining, and management's willingness to share information freely with the union. The findings also indicate that a cooperative labor-management relationship contributed to higher productivity and improved customer service. In addition, organizational commitment was found to have a positive effect on branch-level productivity and customer service, and union loyalty was associated with lower absenteeism.