Government Oversight, Union Democracy, and Labor Racketeering: Lessons from the Teamsters Experience

[Excerpt] In this paper we examine the federal courts\u27 effort to clean up the Teamsters using legislation originally enacted to fight organized crime. Specifically, we look at the role of electoral democracy in this initiative and trace the experience through the 1991, 1996, and 1998 elections for Teamsters president. Once the story is told, we analyze the experience in the context of union democracy and also consider the relationship between democracy and labor movement transformation

Industrial Relations Experiments in China: Balancing Equity and Efficiency the Chinese Way

China should build socialism by "crossing the river by feeling for stones" (Deng Xiaoping). Chinese industrial relations are changing accordingly. Local union experiments have implemented local-level changes experimenting with institutional reforms that address efficiency and equity imbalances. Local union leaders have exercised autonomy to develop multi-employer “community unions” in Changchun’s Chaoyang District to represent peasant migrant workers employed by small firms by targeting small geographic zones and hiring union presidents as organizers, aggregating union members into amalgamated units. While the union’s role still includes social harmonization, unions have undertaken an additional representative role. Similar efforts elsewhere have given the union representation experience. Unions have organized multi-employer federations across industries. Unions also have collaborated with local governments on innovative structures to ensure that companies in some industries, such as construction, post a “bond” to guarantee end-of-year compensation. Finally, this paper discusses the role of the new Labor Contract Law in institutionalizing these changes. The LCL defines more precisely employment relationships and workers’ legal rights and seems to increase unions’ legal authority to ensure that employers respect individual workers’ rights, supports the extension of collective contracts to more enterprises, and appears to give unions greater authority to represent workers within the employment relationship and before legal authorities. These changes may provide a material basis for balancing efficiency with equity. We think these experiments have political foundations, whether it is “harmonious society” or simply to extend the union’s organizing maintain political status. Further research will determine whether these experiments are successful

Pay Incentives and Truck Driver Safety: A Case Study

This paper explores the safety consequences of increasing truck driver pay. The test case the authors examine involves a large over-the-road truckload firm that on February 25, 1997, raised wages an average of 39.1%. An analysis that controls for demographic and operational factors, including prior driving experience and experience acquired on the job, suggests that for drivers employed during the lower pay regime and retained in the higher pay regime, crash incidence fell. A higher pay rate also led to lower separation probability, but this indirect effect only translated into fewer crashes by increasing the retention of older, more experienced drivers. These findings suggest that human capital characteristics are important predictors of driver safety, but that motivational and incentive factors also are influential

3. THE EFFECTS OF TRUCKING FIRM FINANCIAL PERFORMANCE ON DRIVER SAFETY

This chapter uses trucking firm-level information to address the paucity of multivariate analysis accounting for the safety effect of various types of truck driver compensation and firm financial performance. Using negative binomial regression models, we find that small firms with high liquidity are correlated with better safety performance. Likewise, small firms that devote a higher share of their revenues to labor expenses tend to have better safety outcomes. Although the dataset is limited in many ways, these associations suggest that small firms may be particularly sensitive to the competitive nature of the truckload sector, relying on the human capital of drivers to overcome safety challenges due to their size.