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Emerging Labor Market Institutions for the Twenty-First Century$
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Richard B. Freeman, Joni Hersch, and Lawrence Mishel Mishel

Print publication date: 2005

Print ISBN-13: 9780226261577

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226261812.001.0001

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Union Participation in Strategic Decisions of Corporations

Union Participation in Strategic Decisions of Corporations

(p.265) 8 Union Participation in Strategic Decisions of Corporations
Emerging Labor Market Institutions for the Twenty-First Century

Eileen Appelbaum

Larry W. Hunter

University of Chicago Press

In the United States, the explicit representation of workforce interests in strategic decision-making processes of corporations is rare. Participation in strategic decisions—those that affect the basic direction of the company—is unusual even when workforce interests are represented collectively through labor unions. This chapter examines labor-management experiments with two institutions through which strategic participation for unions might be realized: negotiated union-management partnership agreements and union representation on corporate boards. It first considers the problem of corporate governance and reviews the rationale for strategic partnerships. It then discusses the prevalence of partnerships in the United States and describes negotiated partnerships as well as union involvement in corporate boards of directors. The chapter assesses the challenges and dilemmas unions face in seeking strategic partnerships and concludes with observations on public policy.

Keywords:   strategic decision-making, boards of directors, labor unions, strategic partnerships, negotiated union-management partnership agreements, union representation, United States, corporate governance, public policy

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