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Summary ECS2604 ASSIGNMENT 03 SEMESTER 2 2023
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ECS2604 ASSIGNMENT 3SEMESTER 2 2023
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NAME & SURNAME:
STUDENT NUMBER:
MODULE:
ASSIGNMENT NUMBER:
UNIQUE NUMBER:
1.1 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 (Ciptagustia & Kusnendi, 2019). 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:
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.
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