IRE244H1 Lecture Notes - Lecture 10: Nonunion, Bargaining Unit, Demand Curve

• School: UTSG
• Department: Employment Relations, Centre for Industrial Relations and Human Resources
• Course: IRE244H1
• Professor: Frank Reid

Document Summary

Ire244 lecture 10: union impacts on ir outcomes. Union impacts on hr and ir outcomes. Unions affect many hr and ir practices of organizations, including: Union"s ability to win increased compensation depends on ability to impose costs on employer through strikes or the threat of a strike. Given a downward sloping demand for labour, unions will be concerned about any negative employment effects of a wage increase that they negotiate. Elasticity of demand for labour defined as the percentage drop in employment for each one percent rise in wage rate. Union power is greater the lower the elasticity of demand for labour (i. e. steeper is the demand curve)because employment effects of a wage increase will be smaller. Determinants of elasticity of demand for labor (marshall"s rules) Demand for labor will be less elastic. The more difficult it is to substitute capital (or nonunion labor) for bargaining unit labor. The smaller the share of bargaining unit labor costs in total costs.