Some collective bargaining agreements contain “union standards” clauses that pro

Question

Some collective bargaining agreements contain “union standards” clauses that prohibit the employer from subcontracting with firms that pay wages below those specified in the agreement. That is, the employer is prohibited from farming out work normally done in the plant to other firms (the subcontractors) if the subcontractors pay less than the union wage. What is the union’s rationale for seeking a union standards clause? Under what conditions will a union standards clause most likely be sought by a labor union?

Labor Economics

ECN 451

Thank you

Explanation / Answer

If the firm is allowed to lease the work to subcontracters at lower than the union wage, then the firms would do so in order to reduce the wage cost. When subcontractors are ready to do the work at lower wages then the union standards clause is most likely to be sought by a labor union.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.