Research reveals impact of declining collective bargaining coverage


The Economic Policy Institute in the US has just published research that reveals the impact of declining union density and collective bargaining on wages. It finds, for example, that falling union membership translates to a loss of $1.56 (€1.47) per hour worked for the average worker, the equivalent of $3,250 (€3,070) for a full-time, full-year worker. Meanwhile, the erosion of collective bargaining lowered the median hourly wage also by $1.56 (€1.47), a 7.9% decline (0.2% annually), from 1979 to 2017. An analysis of wage distribution found that declining unionisation had widened inequality between high-wage earners and middle-wage earners as the wages of the latter were depressed while there was little impact on high-wage earners at the 90th percentile.

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