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ECS2604 ASSESSMENT 3 SEMESTER 2 2023
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ECS2604 ASSESSMENT 3 SEMESTER 2 2023
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PASSMATE TUTORIALS passmatetutorials@gmail.comDISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE FRAMEWORK
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1.1 The 'Threat Effect' in Discouraging Workers from Joining a Union
According to threat effect refers to the increase in the non-union wages that is offered
by an employer in the non-unionised sector in response to the threat of unionisation.
The employer thus hopes to discourage workers from joining the union by paying wage
rates that are more comparable to union wage rates. In other words the 'threat effect'
entails to the perception among workers that if they join a union, they may face
negative consequences or retaliation from their employers. This perception can act as
a deterrent for workers considering unionization.
The effectiveness of the threat effect in discouraging workers from joining a union can
vary depending on several factors:
1. Employer tactics: The employer hopes to discourage workers from joining the
union by paying wage rates that are more comparable to union wage rates. The
threat effect might increase the wages in the non-unionised sector. The
differential now appears to be only higher by the amount set by the employer.
In this case, the true effect of the union is understated. Nonetheless, at the new
wage rate, employment in the non-unionised sector would decrease . Note that
must be below the union wage, or the workers in the unionised sector would
ask for their wage to increase (for example, during collective bargaining) until it
is higher than the wage in the non-unionised sector. Employers may use various
tactics to discourage unionization, such as anti-union campaigns, intimidation,
threats of job loss, or promises of better treatment without a union. The
effectiveness of these tactics can depend on the aggressiveness and
persistence of the employer's efforts.
2. Legal protections: Labor laws in different countries provide varying levels of
protection for workers' rights to join unions. Strong legal protections can reduce
the effectiveness of the threat effect by ensuring that workers are not subjected
to unfair treatment or retaliation for exercising their right to unionize.
3. Worker solidarity: The level of solidarity among workers can also influence
the effectiveness of the threat effect. If workers perceive that their colleagues
are supportive of unionization and are willing to collectively resist employer
tactics, they may be more likely to overcome the fear of retaliation and join a
union.
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