Workplace Innovation and Union Status: Synergy or Strife

Abstract

In this study, we investigate union/nonunion differences in product and process innovations. The analysis focuses on the ability of workplaces to innovate and its relationship to union status and to the introduction of innovative workplace practices using data from the first Workplace and Employee Survey (WES). Two effects were hypothesized: a direct negative effect of unions in the form of restrictive work rules and an indirect positive effect through adoption of innovative workplace practices. Results show that the presence or absence of a union in itself appears unrelated to the ability of workplaces to innovate. On the other hand, several work practices such as use of teams, flexible management, and use of training were positively and significantly related to most measures of innovation. Other much touted practices such as incentives appeared to have little effect. Flexible hours and use of new technology had positive effects on some measures but not others.