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Trade Union Orientation and Macro-Economic Management

Rosalind Chew

Division of Applied Economics, Nanyang Technological University, Nanyang Avenue, Singapore 639798, Singapore

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Soon Beng Chew

Division of Applied Economics, Nanyang Technological University, Nanyang Avenue, Singapore 639798, Singapore

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https://doi.org/10.1142/S0219091503001134Cited by:2 (Source: Crossref)

Abstract

This paper makes the distinction between micro-focused unions and macro-focused unions, with the latter emphasizing full employment and competitiveness for the economy. It examines the micro-foundation of the macro-focused labor movement, which calls for certain conditions or arrangements conducive to, and the instruments needed for, the establishment and survival of macro-focused unions. The consequences and outcomes in an industrial relations regime in which macro-focused unions prevail are also examined, and measures for countering the free rider problem suggested. The main conclusion is that a macro-focused labor movement is a strategic partner with the government in enhancing international competitiveness, an option which is superior to an exchange rate policy.

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