(MIT Press, 1999) Cramton, Peter; Gunderson, Morley; Tracy, Joseph
Using Canadian data on large, private-sector contract negotiations from January 1967 to March
1993, we find that strikes and wages are substantially influenced by labor policy. The data indicate that
conciliation policies have largely been ineffective in reducing strike costs. In contrast, general contract
reopener provisions appear to make both unions and employers better off by reducing negotiation costs
without systematically affecting wage settlements. Legislation banning the use of replacement workers
appears to lead to significantly higher negotiation costs and redistribution of quasi-rents from employers to
unions.
