Consequences of Work Force Reduction: Some Employer and Union Evidence

Despite the popularity of work force cutbacks in the 1990s, large-scale empirical studies at the bargaining unit level are rare. I explore some of the consequences of permanent work force reduction using data from both employer and union respondents. About 56 percent of employer participants and 57 percent of local union officials reported a permanent reduction of bargaining unit employees. In comparing bargaining units that experienced a permanent reduction of union members, results obtained from both employers and union officials indicated a significant negative impact on overall employee satisfaction and labor climate. Additional analyses with union respondents revealed that the reduction of bargaining unit employees was also associated with a higher rate of grievances and absenteeism and poorer relations between union members and their supervisors.