The Union Threat Effect in Construction: An Illustration with Data from Plumber and Pipefitter Union Locals

Data from plumbing and pipefitting union locals are used to measure the effect of union organizing strength on the wages of high-skilled and semi-skilled nonunion workers. We find that increases in union strength are associated with higher wages for nonunion journeymen. However, the wages of lower skilled, nonunion journeymen helpers are not related to our measures of union recruitment power. These results are consistent with the organizing tactic of labor stripping where skilled nonunion workers are convinced to leave their nonunion employers and join the union. Greater union strength is not associated with higher wages for union journeymen. Rather, these workers derive increased employment opportunities where the union is strong. Our results suggest that the union threat effect is different in the construction industry where unions develop unique strategies due to the nature of the industry.PublishedBux, William, and Miranda Tolar 2007. “Houston Janitors and the Evolution of Union Organizing.” Texas Bar Journal, May, p. 426-430, wwwtexasbar.com Cement Masons and Plasterers Local 528, “Market Recovery”, Updated October 18, 2007: http://www.opcmialocal528.org/?zone=/unionactive/view_article.cfm&HomeID=61814 Condit, Brian, Tom Davis, Jeff Grabelsky, and Fred Kolter 1998. “Construction Organizing: A Case Study of Success.” In Organizing to Win: New Research on Union Strategies (Kate Bronfenbrenner, Sheldon Friedman, Richard Hurd, Rudolf Oswald, and Ronald Seeber, Eds). Cornell University Press, Ithaca, NY, pp.309-319. Farber, Henry 2005. “Nonunion Wage Rates and the Threat of Unionization.” Industrial and Labor Relations Review, Vol. 58, No. 3, (April), pp. 335-352. Freeman, Richard and James Medoff 1981. “The Impact of the Percentage Organized on Union and Nonunion Wages.” The Review of Economics and Statistics, Vol. 63, No. 4 (November), pp. 561-572. Grabelsky, Jeff, Adam Pagnucco, and Steve Rockafellow 1999. “Fanning the Flames (After Lighting the Spark): Multi-trade COMET Programs.” Labor Studies Journal, Vol. 23, No. 34, pp. 34-50. Grabelsky, Jeff (1995). “Lighting the Spark: COMET Program Mobilizes the Ranks of Construction Organizing.” Labor Studies Journal, Spring. ______ 1988. “Bottom-Up Organizing in the Trades.” Labor Research Review, Vol. 12, No. 2, pp. 21-36. Hausman, Jerry, 1978. “Specification Tests in Econometrics.” Econometrica, Vol. 46, November, pp. 1251-1271. Hemndricks, Wallace and Lawrence Kahn, 1983. “Cost of Living Clauses in Union Contracts: Determinants and Effects.” Industrial and Labor Relations Review, Vol. 36, No. 2, pp. 447-460. Hess, Gary 1997. “Salting: An Industry Perspective.” Journal of Labor Research, Vol. 28, No. 1, winter, pp. 47-53. International Brotherhood of Electrical Workers (IBEW) 2003. “Ten-Year Campaign Brings Hudson Valley Contractor Into Union Fold.” IBEW Journal (September), http://www.ibew.org/articles/03journal/0309/p10.htm. _____ 2000. “Great Strides in Teledata Organizing.” IBEW Journal (January/February), http://www.ibew.org/articles/00journal/0002/JF00OrgWire.pdf Leicht, Kevin 1989. “In the Estimation of Union Threat Effects.” American Sociological Review, Vol. 54 (December), pp. 1035-1047. Lewis, Janet and Bill Mirand 1998. “Creating an Organizing Culture in Today’s Building and Construction Trade: A Case Study of IBEW Local 46.” In Organizing to Win: New Research on Union Strategies (Kate Bronfenbrenner, Sheldon Friedman, Richard Hurd, Rudolf Oswald, and Ronald Seeber, Eds). Cornell University Press, Ithaca, NY, pp.309-319. Lucas, Michael 1997. “ Salting and Other Union Tactics: A Unionist’s Perspective.” Journal of Labor Research, Vol. 28, No. 1, wither, pp. 55-64. Neumark, David and Michael Wachter 1995. “Union Effects on Nonunion Wages: Evidence from Panel Data on Industries and Cities.” Industrial and Labor Relations Review, Vol. 49, No. 1 (October), pp. 20-38. Northrup, Herbert 1989. “Construction Doublebreasted Operations and Pre-Hire agreements: Assessing the Issues.” Journal of Labor Research, Vol. 10, No. 2, spring, pp. 215-238. Pindyck, Robert and Daniel Rubenfeld 1991. Econometric Models and Econometric Forecasts, 3rd ed., McGraw-Hill, New York, pp. 303-305. Rosen, Sherwin 1969. “Trade Union Power, threat Effects and the Extent of Organization.” Review of Economic Studies, Vol. 36, No. 2, (April), pp. 185-196. Vroman, Susan 1990. “The Union-Nonunion Wage Differential and Monitoring Costs.” Economic Letters, Vol. 32, pp. 405-409. Wunnava, Phanindra and John Honney 1991. “The Union-Nonunion Wage Differential over the Business Cycle: Evidence from the PSID.” Economic Letters, Vol. 37, pp. 97-103