Unions Bargain for Featherbedding, Reducing Efficiency and Hurting Workers
The article explores how unions and companies negotiate over not just wages but also work rules, like job assignments and work speeds. They analyzed different bargaining scenarios to see how they might influence employment outcomes. Interestingly, they found that when bargaining includes both work rules and wages, the result is more similar to negotiations only about wages than when fully bargaining over wages and employment levels. The researchers also noted that agreements including "featherbedding" (requiring hiring workers with no added productivity) can affect the bargaining process and outcomes.