If a large proportion of the members are asked to

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Unformatted text preview: for others who lose jobs. If a large proportion of the members are asked to take what amounts to a wage cut, in order to provide additional jobs to a minority, the majority might refuse and the contract proposal will not be ratified by the membership. So efficient contracts model might not be relevant for this reason as well. The majority might stand up for the minority under conditions of “union solidarity.” Alternatively, the union might bargain for two-tier contracts, which imply lower wages for new hires. These are easier to accept at first, but then inequities can cause problems later—cf. experience with airline pilots. We next go beyond these formal models, which are only partly helpful, to examine union behavior. C. Positive strategies unions can adopt for mutual gains or high road partnerships. 1. Increasing product demand for union labor -- advertising their product: “look for the union label” -- influencing government to buy union-made goods and services --get local governments to require “neutrality” for contractors and subsidy recipients --lobby for staffing requirements on behalf of quality standards Examples: Nurse-patient ratios; teacher-student ratios 3 Crew members in an airpl...
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This note was uploaded on 06/06/2010 for the course ECON 151 taught by Professor Staff during the Spring '08 term at Berkeley.

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