the impact of unions on job satisfaction, organizational commitment, and turnover

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The Impact of Unions on Job Satisfaction, Organizational Commitment, and Turnover TOVE HELLAND HAMMER and ARIEL AVGAR* Cornell University, Ithaca, NY 14853 I. Introduction The purpose of unions is to further the economic interests of their members by nego- tiating on their behalf over terms and conditions of employment. People join unions both to rectify dissatisfying circumstances and to increase the gains from employ- ment. A pro-union vote is determined primarily by job dissatisfaction and a belief that the union will be able to improve one's work life by ensuring higher wages and ben- efits, job security, and protection against arbitrary and unjust treatment (Getman et al., 1976; Hammer and Berman, 1981; Zalesny, 1985). According to the neoclassical economic model of union joining, workers choose union jobs over nonunion jobs because the former will have higher utility, which has certainly been born out with respect to wages, benefits, and pensions (Farber and Kruger, 1993; Hirsch and Macpherson, 1998; Hirsch and Schumacher, 2002). In addition, union jobs entail so- cial benefits in the form of a system of due process and participation in decisions about employment and working conditions. Union membership is not a free good, however. It carries both economic and social costs. The most obvious economic costs to the individual worker are union dues and potential loss of income due to strikes. In addition, job security, supposedly a benefit of union status, is not a certainty for all members. The monopolistic model of unions shows that they lower the demand for union labor by raising wage rates above competitive levels, which results in a shift of jobs to the nonunion labor force (Farber, 1986; Hirsch and Addison, 1986; Addison and Chilton, 1997). This increases the probability that low-seniority union workers may lose their jobs the more unions are achieving success in increasing the wage premium (Kleiner, 2002; Thieblot, 2002). l The social costs of union status can include a more adversarial relationship with the employer, a more rigid or bureaucratic organization of work, and more narrowly de- fined job tasks with less individual discretion. One can look at union joining as an asset purchase (Pencavel, 1971). As long as the benefits outweigh the costs, and there are no alternative ways of obtaining the benefits at lower costs, there should be a queue of workers wanting union jobs (Abowd and Farber, 1982). Although the gap between union and nonunion wages has nar- rowed over time, and there are substitutes available for at least some of the services JOURNAL OF LABOR RESEARCH Volume XXVI, Number 2 Spring 2005

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Page 1: The impact of unions on job satisfaction, organizational commitment, and turnover

The Impact of Unions on Job Satisfaction, Organizational Commitment, and Turnover

T O V E H E L L A N D H A M M E R and A R I E L A V G A R *

Cornell University, Ithaca, N Y 14853

I. Introduction

The purpose of unions is to further the economic interests of their members by nego- tiating on their behalf over terms and conditions of employment. People join unions both to rectify dissatisfying circumstances and to increase the gains from employ- ment. A pro-union vote is determined primarily by job dissatisfaction and a belief that the union will be able to improve one's work life by ensuring higher wages and ben- efits, job security, and protection against arbitrary and unjust treatment (Getman et al., 1976; Hammer and Berman, 1981; Zalesny, 1985). According to the neoclassical economic model of union joining, workers choose union jobs over nonunion jobs because the former will have higher utility, which has certainly been born out with respect to wages, benefits, and pensions (Farber and Kruger, 1993; Hirsch and Macpherson, 1998; Hirsch and Schumacher, 2002). In addition, union jobs entail so- cial benefits in the form of a system of due process and participation in decisions about employment and working conditions.

Union membership is not a free good, however. It carries both economic and social costs. The most obvious economic costs to the individual worker are union dues and potential loss of income due to strikes. In addition, job security, supposedly a benefit of union status, is not a certainty for all members. The monopolistic model of unions shows that they lower the demand for union labor by raising wage rates above competitive levels, which results in a shift of jobs to the nonunion labor force (Farber, 1986; Hirsch and Addison, 1986; Addison and Chilton, 1997). This increases the probability that low-seniority union workers may lose their jobs the more unions are achieving success in increasing the wage premium (Kleiner, 2002; Thieblot, 2002). l The social costs of union status can include a more adversarial relationship with the employer, a more rigid or bureaucratic organization of work, and more narrowly de- fined job tasks with less individual discretion.

One can look at union joining as an asset purchase (Pencavel, 1971). As long as the benefits outweigh the costs, and there are no alternative ways of obtaining the benefits at lower costs, there should be a queue of workers wanting union jobs (Abowd and Farber, 1982). Although the gap between union and nonunion wages has nar- rowed over time, and there are substitutes available for at least some of the services

JOURNAL OF LABOR RESEARCH

Volume XXVI, Number 2 Spring 2005

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unions provide (Bennett and Taylor, 2002; Fiorito, 2002), there is still an economic advantage to union status (Farber and Western, 2002). Thus, the utility of union jobs should exceed the utility of nonunion jobs, at least for those workers who retain their jobs in the face of a shrinking demand for union labor, and one would therefore ex- pect union workers to be more satisfied with their jobs relative to nonunion workers (Kaufman, 2004). Attitude surveys among U.S. workers have shown repeatedly that it is the other way around: union workers report less overall job satisfaction than non- union workers. Despite lower job satisfaction, however, union workers are less likely to quit (Freeman, 1978; Borjas, 1979; Kochan and Helfman, 1981; Leigh, 1986; Addison and Castro, 1987; Schwochau, 1987). 2 Recent studies in other countries have reported similar findings (Lincoln and Boothe, 1995; Renaud, 2002; Bryson et al., 2003).

The data show that union workers are at least as satisfied with wages, benefits, and job security as are nonunion workers, but are less satisfied with supervision, job content (the nature of the tasks they are given to do, the skills required, and the free- dom to make decisions about their job), the resources available to do their job, and opportunities for promotion (Freeman, 1978; Kochan and Helfman, 1981 ; Meng, 1990; Miller, 1990; Pfeffer and Davis-Blake, 1991; Lincoln and Boothe, 1995; Renaud, 2002; Bryson et al., 2003). When workers are asked about their overall, or general, job satisfaction, the negative job facets seem to outweigh the positive, resulting in the lower job satisfaction scores for union workers.

Two questions arise from these studies: Why are workers less satisfied with union jobs that, on the face of it, have higher utility than nonunion jobs, and why, if dissat- isfied, do they stay? If we assume that union workers are rational economic actors and we assume a competitive labor market where jobs and workers are more or less iden- tical, we would expect, if behavior follows attitudes, that dissatisfied union workers would leave the employer for more pleasant jobs.

II. The Exit- Voice Hypothesis

Freeman and Medoff (1984) suggested that one reason why union workers report less job satisfaction than nonunion workers is that union jobs are less attractive than com- parable nonunion jobs on certain job dimensions, such as the quality of supervision, the nature of job tasks, or working conditions. Unpleasant jobs are more likely to lead to unionization to begin with, or the jobs may have become less attractive after union- ization if management responded to higher labor costs by increasing demands for production and decreasing allocations to the physical work environment.

Their explanation for the attitude-behavior inconsistency is that union workers become primed to detect dissatisfying conditions in the workplace through the oppor- tunity to bargain with the employer for improvements and the ability to grieve breaches in the union contract, essentially becoming politicized. But because the union also acts as a voice mechanism vis-/l-vis management for its members' discontent, work- ers stay. The effect increases with exposure to, and experience in, the job, so tenure is negatively related to job satisfaction (Borjas, 1979).

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The fact that workers do not quit when dissatisfied led Freeman and Medoffto argue that their expressed dissatisfaction does not indicate their true attitudes, but rather their politicization. In other words, if union workers were truly dissatisfied with their jobs, they would look for new ones. Nonunion workers, not being equally politicized and lacking both a voice mechanism and union protection, act on their discontent and quit, in full accordance with economic theory.

In the remainder of this article, we examine the different alternative explanations that have been offered to the exit-voice hypothesis and the research conducted to examine them. We then discuss the research findings in light of theoretical and em- pirical models of job satisfaction, turnover (quits), and absenteeism. We also briefly examine the relationship between unions and organizational commitment.

III. Alternative Explanations of the Union Effect on Job Satisfaction

A number of possible explanations have been offered for why union members would be less satisfied with their jobs than nonunion workers and also remain in their jobs.

An obvious hypothesis, suggested by Freeman and Medoff (1984), is selection - - unions tend to organize among workers who have unpleasant, unsafe, and eco- nomically unrewarding jobs and who are therefore likely to vote the union in. Union status is thus a rational response to the objective characteristics of the job (reverse causality).

According to the exit-voice hypothesis, the dissatisfaction of union members does not come from the evaluation by workers of the tangible benefits of the job. Instead, it is the result of a psychological process whereby workers' own experiences of seeking redress, or observing others doing the same, become translated into atti- tudes - - an inevitable and unanticipated consequence of working within structures and processes that demonstrate the conflicting interests of labor and management.

A third explanation for the negative union effect on job satisfaction is that union leaders "manufacture" discontent by raising members' expectations about job out- comes beyond what is realistic. Dissatisfaction comes from the knowledge that there is always something lacking in the job that the union will strive to attain in bargaining. This argument, which has its origin in Ross' (1948) political model of wage bargain- ing, is not part of Freeman and Medoff's (1984) thesis. The exit-voice model does not imply that union leaders, on purpose, encourage members to adopt a negative view of the workplace, even if they do provide workers an opportunity to remedy dissatisfy- ing conditions. Union members' dissatisfaction comes from the fact that collective bargaining is adversarial. As others have argued, it would not make sense for union leaders to fuel discontent among their members after a certification election because they would only be reminding the workers that the union was not delivering on its promise to fix the problems it identified during the organizing campaign (Kochan and Helfman, 1981; Pfeffer and Davis-Blake, 1990; Barling et al., 1992; Gordon and DeNisi, 1995).

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Other alternative explanations are based on theoretical and methodological ob- jections to the studies used to support the exit-voice model, in particular, the argu- ment that researchers did not control for the effects on job satisfaction of all the dif- ferences between union and nonunion jobs and other work environment factors.

A fourth hypothesis is that the negative union effect on job satisfaction arises from differences in the content, or nature, of union and nonunion jobs. I f unions, through narrow job classifications and restrictive work rules, limit union workers' full use of their skills and abilities, and offer few opportunities for challenge, achieve- ment, autonomy, and promotions, job satisfaction will suffer (Hackman and Oldham, 1980; Cranny et al., 1992).

A fifth hypothesis is that union and nonunion workers have different preferences for job outcomes or different frames of reference for evaluating job outcomes. The relevant argument is that unions "teach," or socialize, their members to value those facets of the job the unions aim to improve, viz., wages, hours, and working condi- tions (Berger et al., 1983; Barling et al., 1992), and, by implication, to downgrade those aspects of the work environment the unions have tended to ignore, such as job content. Unions also create more homogeneity among workers in terms of what they consider desirable or find satisfactory, which means that individual differences - - an important determinant of job attitudes (Motowidlo, 1996) - - will be less important in a union setting than in a nonunion workplace.

A sixth hypothesis is that differences in job satisfaction between union and non- union workers occur because the industrial relations climate is poorer in union work- places. Although part of the industrial relations climate is embedded in the exit-voice model through the conflictive nature of bargaining, labor-management relations are also a function of the levels of management's resistance to unionization and union leaders' willingness to work towards a collaborative relationship with the employer. Freeman and Rogers' (1999) national survey of what workers want in the way of workplace representation demonstrated the importance of positive labor-management relations for both union and nonunion workers. The hypothesis assumes that there is a main effect on job satisfaction of the industrial relations climate (Kochan and Helfman, 1981; Gordon and DeNisi, 1995; Kleiner, 2002).

A seventh explanation, which we can call the expanded utility hypothesis, is a merger of previous hypotheses with the utility concept.

Freeman and Medoff (1984) suggested that the dissatisfaction reported by union members is not "real," because it is not based on an assessment of the utility of the union jobs. In the debates about the union effect on job satisfaction, there is an im- plicit assumption that the utility of a job translates to satisfaction with it. In economic theory the concept of utility is indeed a measure, or indicator, of the satisfaction a person gains from the consumption of a bundle of goods and services. Yet, union workers are clearly dissatisfied with jobs that, seemingly, have high utility. The counterintuitive union effect may come about because utility has been defined, con- ceptually and operationally, in a rather narrow way. In the wage and employment

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effects model, utility is function of the wage rate and employment. In a model of union goals or objectives, maximizing the utility for members may include all the terms and conditions of employment (Pencavel, 1991). But the bundle considered by union workers in their personal definition of utility may well include items that the union has not been willing or able to obtain for them, such as intrinsically motivating and interesting jobs, harmonious and cooperative relations with supervisors and man- agers, or investment in new facilities and technologies to ensure future j ob security.

So far the alternative hypotheses for the negative union effect on job satisfaction have focused on the unit level - - either on the workplace and its management, or on the union. A more recent suggestion - - an eighth hypothesis - - puts the focus on the individual employee by proposing that people who are drawn to unions, and therefore prone to choose union jobs or vote for union representation, have personal character- istics different from those who prefer nonunion status (Bryson et al., 2003). The na- ture of these differences is not specified, but go beyond demographic characteristics, moving more towards basic values and personalities. The worker heterogeneity hy- pothesis may have some support in the research showing that American workers pre- fer nonunion status, everything else being equal, because of societal cultural values that encourage people to define themselves as independent, where personal goals have priority over communal or group goals, and social behavior is guided by atti- tudes, personal needs, and rights of the individual members (Triandis, 1995; Hammer and Hartley, 1997). According to the standard economic model of union joining, Americans must therefore be "pushed and pulled" into unions by dissatisfaction and expectations of improvements, respectively (Bennett and Kaufman, 2002). The indi- vidual difference, or worker heterogeneity, hypothesis suggests that some may be attracted to union status beyond the promise of prospective gains.

IV. The Nature and Consequences of Job Satisfaction

In a well-known treatise on job satisfaction, Locke (1976) defined the construct as a pleasurable or emotional state "resulting from the appraisal of one's job as attaining or allowing the attainment of one's important job values, providing these values are congruent with or help to fulfill one's basic needs. These needs are of two separable but independent types: bodily or physical needs and psychological needs, especially the need for growth. Growth is made possible mainly by the nature of work itself" (p. 1319). Exit-voice researchers have based their studies on a shorter variant of this definition - - the view that job satisfaction is determined by job outcomes. Some (e.g, Berger et al., 1983) have recognized that satisfaction depends on how well job out- comes match values, and some have, implicitly, recognized the importance of psy- chological growth needs (Kochan and Helfman, 1981 ; Pfeffer and David-Blake, 1990).

Locke's (1976) definition is not a complete model of job satisfaction, however. To understand and predict job satisfaction, more complex models are needed. The most complete, and probably the most relevant, job satisfaction model was developed by Hulin et al. (1985) based on prior theoretical work and empirical research. They

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describe job satisfaction as a function of four factors or psychological processes: work role (or job) outcomes, work role contributions, the frame of reference used to evaluate job outcomes, and the subjective utility of contributions and outcomes.

Employees evaluate the outcomes they receive in relation to what they expect to receive given their work role contributions, that is, their skills, effort, time, training, and foregone opportunities. The evaluation is influenced by their frame of reference, an internal standard of what is acceptable or good, that is shaped by past work experi- ences and local economic conditions. Employees with a history of high-wage jobs with good benefits, supportive managers, and interesting job tasks will have a differ- ent frame of reference than employees who have experienced less munificence - - their criteria for assessing the value of jobs are stricter. The frame of reference is also influenced by local economic conditions. Living and working in an area with high unemployment and general decrepitude will lower the internal standard, which means that the same job outcomes will be evaluated more positively than if one lived and worked in a prosperous area with a tight labor market. Having a job when others around do not will increase job satisfaction.

Subjective utility is the value a person places on what he or she brings to the labor exchange and the costs of foregone options that are conditioned on local and occupational unemployment and available alternatives. Being in a tight labor market with high employer demands for one's job qualifications will increase subjective util- ity because what one can contribute is in short supply. High unemployment and low demand for one's skills and experience will lower subjective utility because many other workers in the local labor market can make equal or better contributions.

The frame of reference construct is directly applicable to the exit-voice hypoth- esis because union membership should affect the internal standard workers use when they assess the relationship between their contributions and their outcomes. The rela- tive munificence of their job outcomes and their experience of being protected against lay-offs and employer idiosyncrasies give union members a frame of reference that should lower the assessment of present job outcome values. One can say that union members have higher expectations of the present than nonunion members, everything else being equal, because the past has been more benevolent.

Most studies of job satisfaction are based on the assumption that affective re- sponses to the job come entirely from the match between individuals' needs, values, and experiences and characteristics of the work environment, including the job, the employer, and the local economic situation. If this is true, we should be able to design jobs and employment conditions to maximize positive affect. In other words, if work- ers are dissatisfied, somebody is to blame. Most often than not, the employer gets the blame; in the exit-voice model, the union shares it. But how we feel about our jobs may also lie within us.

Research linking personality traits to affective responses has shown that people are predisposed to respond negatively or positively to events and circumstances in their lives. Two personality traits, in particular, underlie affect: positive affectivity, or

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Extraversion, and negative affectivity, or Neuroticism (Emotional Stability). 3 Positive affectivity (PA) is the predisposition to experience positive emotions and moods. High PA individuals have an overall sense of well-being, feel good about themselves and what they do, and perceive stimuli, think, and behave in ways that will maintain their positive feelings (Tellegen, 1985). Negative affectivity (NA) is the predisposition to experience negative emotions and moods. High NA individuals tend to have negative feelings and an overall negative orientation towards themselves and their environ- ment. They think and behave in ways that result in negative feelings.

Positive and negative affectivity are independent personality traits, not endpoints of one continuum. They have a genetic base, which means that they are enduring parts of personality, unlikely to change over time (Tellegen et al., 1988). In other words, there are happy and unhappy people (Costa and McCrae, 1980). Not surprisingly, positive affectivity is positively related to job satisfaction and negative affectivity is negatively related to job satisfaction (Cropanzano et al., 1993; George, 1991). There is no information in either theory or research to suggest that the people who join unions have higher levels of negative affectivity than those who prefer nonunion sta- tus, however, but it would be an interesting hypothesis to test if studies were to show that there is meaningful variance in union members' job satisfactions scores that can only be attributed to worker heterogeneity.

V. The Relationship between Job Satisfaction and Turnover

The exit-voice paradox - - that dissatisfied workers stay with their employers instead of leaving for better jobs elsewhere - - runs counter to the assumption that that work- ers are rational actors who seek to maximize their utility wherever possible. The rela- tionship between job satisfaction and turnover is not straightforward, however.

All psychological models of turnover (voluntary quits) list job satisfaction as one among several determinants of organizational withdrawal, and not necessarily the most important one (see Hulin, 1991; Rosse and Noel, 1996; Griffith and Horn, 2001 for reviews). Meta-analyses have found that job satisfaction correlates -.26 with ac- tual turnover and -.38 with intention to quit (Cartsen and Spector, 1987). These rela- tionships are weaker when the number of available job alternatives decreases, as when local unemployment is high.

Turnover models focus more on the processes that lead to the decision to quit than on identifying long lists of predictors, which has led to research on the various ways employees can adapt to dissatisfying jobs. Different forms of withdrawing from work, such as tardiness, absenteeism, retirement, and quitting are forms of adapta- tion. The list of possible adaptive responses is long (Hulin, 1991), and leaving the job is but one among many. It is far from obvious, based on conceptual analyses, that quitting would be the most frequently used response to a dissatisfying job. As long as quitting is costly, and there are other less costly ways to adapt, the dissatisfied are likely to remain in their jobs. For people covered by a collective bargaining contract, the costs of quitting are high when union members believe that they will not be able to find new jobs with the same outcomes (Kochan and Helfman, 1981).

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VI. Methodological Problems with Studies Testing the Exit-Voice Model of Job Satisfaction

Most of the studies testing the exit-voice hypothesis and its alternatives have used data sets from national probability samples, like the National Longitudinal Surveys (NLS), the Quality of Employment Survey (QES), or the Panel Survey of Income Dynamics (PSID) (Freeman, 1978; Borjas, 1979; Kochan and Helfman, 1981 ; Leigh, 1986; Schwochau, 1987) with model specifications that include a number of controls for different alternative explanations. Some studies control for narrow characteristics of the work environment, such as the intrinsic quality of the job, or a mixture of job content and physical workplace factors; others focus on broader constructs like the industrial relations climate or labor-management conflict.

The most obvious methodological problem with the use of large probability samples is the trade-offbetween generalizability and control. The benefit is that they increase the generalizability of the results across organizations and employers. The drawback is that they confound union membership with working conditions that in- fluence both job satisfaction and unionization. Even when data sets contain variables that allow researchers to control for respondents' perceptions of aspects of the work environment, such as job content or physical characteristics, they do not contain enough measures of sufficient fidelity to hold constant all the important variables that can influence the correlation between being a union member and job satisfaction.

A second problem is that the measures of job satisfaction available in national probability sample data sets are often general (measuring overall job satisfaction) and few in number, which is a threat to reliability. The measurement of perceptions, be- liefs, and attitudes is subject to a number of systematic and random biases or sources of error (Ghiselli et al., 1981; Motowidlo, 1996). To guard against random error, in particular, an attitude towards any object, event, or situation should be measured with a series of items representing the domain that defines the object, where each item elicits one or another part of the domain (see Nunnally, 1978, for an explanation of domain sampling theory). Measures with large random error components lower the validity coefficient. A reliable and valid measure of job satisfaction should include sets of items that tap different parts of the re spondent's attitude towards the job (such as pay, promotional opportunities, co-workers, supervision, job complexity, skill re- quirements, etc.) as well as different aspects, or psychological properties, of each job facet (see, for example, the Cornell Job Description Index [Smith et al., 1969] or the Minnesota Satisfaction Questionnaire [Weiss et al., 1967]).

In most of the large-scale probability sample studies, overall job satisfaction and job facet satisfaction have been measured with one question per facet. One-item atti- tude measures are unreliable. Even when researchers have recognized the statistical problems caused by one-item scales and have tried to create a more reliable indicator of job satisfaction, they have met with modest success because the survey questions available for scale construction have not come from the same domain. For example, Pfeffer and Davis-Blake (1990) combined an overall job satisfaction item from the

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1977 Quality of Employment Survey with four other items believed to be related to job satisfaction (intention to quit, likelihood of recommending the job to someone else, extent to which the job measured up to expectations, and whether the respondent would take the job he or she had now if given the choice). Their scale had a modest inter-item reliability coefficient (.75), which reflected the lack of domain sampling precision.

One way around the confounding and measurement problems is to control for work situation heterogeneity by judiciously choosing research samples and attitude measures with known psychometric properties. For example, Gordon and DeNisi (1995) tested the exit-voice hypothesis among union and nonunion workers employed by the same organization where union membership was independent of working con- ditions, industrial relations climate, and other possible employer-related differences. The costs of controlling for confounding factors through sample selection are lack of generalizability and modest sample sizes. Samples sizes in the Gordon and DeNisi's (1995) study comprised 151 and 1,513 employees. One benefit, however, is that the measures of job satisfaction, and, where relevant, job and firm-level controls, are more reliable and valid indicators. For example, the job satisfaction measure in the Gordon and DeNisi (1995) study was a 13-item scale built from questions covering different job facets, with an inter-item reliability coefficient of .92.

VI. A Review o f the Research on the Union Effect on Job Satisfaction and Turnover

Most of the studies done to develop, and challenge, the exit-voice hypothesis have used data from large probability samples. The research covers workers in the United States, the United Kingdom, Canada, and Australia, which allows for comparisons of union effects on job satisfaction and turnover across societal cultural values and in- dustrial relations systems. We review the evidence from these studies first before turning to the studies that have focused on union-nonunion comparisons with the controls for work environment differences built into the research design.

The exit-voice hypothesis has received at least partial support from the national probability sample data (Borjas, 1979; Blau and Kahn, 1983; Schwochau, 1987; Miller and Mulvey, 1991). Other studies using the same data sets, but different model speci- fications, have reached different conclusions about the negative effect of unionization on job satisfaction, the argument that union members' dissatisfaction is not "real," or "true," and the voice explanation for the negative correlation between tenure and job satisfaction (Kochan and Helfman, 1981 ; Berger et al., 1983; Hersch and Stone, 1990; Pfeffer and Davis-Blake, 1991).

Early studies by Freeman (1978), Borjas (1979), Kochan and Helfman (1981), and Schwochau (1987) attempted to control for reverse causality, the first and most obvious explanation for low job satisfaction among union workers, but found that there was still a significant amount of variance left in job satisfaction scores that could not be explained by the dissatisfied having voted for union representation.

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Kochan and Helfman (1981), using data from the 1977 QES survey, found that a positive effect of union membership on satisfaction with pay, benefits, and job secu- rity was mediated by union wages. Once wage level was held constant, the relation- ship between unionization and satisfaction with "bread and butler issues" became insignificant. A significant negative union effect on satisfaction with supervisors, promotion opportunities, job content, the adequacy of resources and information avail- able to do the job did not disappear when wages were held constant, however.

Data on turnover intentions were more in line with the exit-voice hypothesis. Union membership, not controlling for wages, was negatively related to propensity to quit, and job dissatisfaction had much less of an effect on the probability of leaving the job for union members than nonunion workers. But there was no significant rela- tionship between being a union member and intention to quit once wages and job satisfaction were held constant. Union workers were significantly less likely than nonunion workers to believe that they could find new jobs with the same wages and benefits should they quit, which led Kochan and Helfman (1981) to argue that the beneficial union effect on turnover (that is, staying) is caused by wages and benefits.

Two studies using the same data set reached similar conclusions about the ab- sence of a union voice effect on job satisfaction, but arrived at slightly different expla- nations for their findings. The conceptual frameworks in which these early studies were anchored make them important for the application of job satisfaction theories and data to the exit-voice model.

Berger et al. (1983) argued that unions influence workers' preferences for di ffer- ent job outcomes. In particular, union members should be more satisfied with pay and fringe benefits than nonunion workers because union members have been socialized to consider these as more important. Similarly, union members should be less satis- fied with nonpecuniary job outcomes, such as supervision, co-workers, the nature of work, and opportunities for promotion, because these job facets would be perceived as less important. Not surprisingly, the results supported the hypotheses, in the sense that there were no significant union effects on satisfaction with the various job facets when importance ratings and perceptions were held constant, This study is more im- portant for the theoretical proposition that unions influence worker attitudes through their effects on values and perceptions than for some of the results. This is because the measures of job facet importance and satisfaction are not independent, and the me- diation effect may therefore be spurious. 4

Schwochau (1987), building on the Berger et al. study (1983), proposed that union members and nonmembers have different weighing schemes for job outcomes based on differences in job values and expectations. By comparing the actual job satisfaction of union members with derived satisfaction scores based on weights cal- culated from the nonunion sample, and vice versa (a procedure not entirely transpar- ent), Schwochau showed that the pay satisfaction of union members, which was higher to begin with, declined, while the pay satisfaction of nonunion members increased. Applying the weights derived from the nonunion sample to the union members ' satis-

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faction with supervision, co-workers, and the adequacy of resources increased these scores. The results are not completely in line with the politicization interpretation of the exit-voice model because the negative union effect on job satisfaction came from the adoption of a specific frame of reference for evaluating job outcomes, not from the socialization of union members to a political interest-group model of the work- place.

Pfeffer and Davis-Blake (1990) argued that union membership should, if any- thing, increase job satisfaction because unionized workers should suffer less from wage inequality and employer arbitrariness in the allocation of work, and benefit more from fair work rules and procedures. In addition, the actual efforts union mem- bers exert to improve their employment and working conditions should generate more positive perceptions of the workplace through cognitive dissonance. 5 Previous stud- ies (Borjas, 1979; Kochan and Helfman, 198l) had failed to find positive relation- ships between being unionized and job satisfaction because they had not controlled with sufficient statistical precision for the poor employment and working conditions that motivated decisions to unionize to begin with. Using data from the 1977 Quality of Employment Survey and controlling for worker perceptions of autonomy (freedom and responsibility to make decisions about how one's job gets done), quality of super- vision, the amount of role conflict experienced, and work pace - - all job attributes related to the propensity to unionize - - Pfeffer and Davis-Blake (1990) found a posi- tive correlation between union membership and job satisfaction. This relationship was stronger where union members felt that they had more control over their work situation and were more involved in union activity, as was the case in craft and white- collar unions.

Renaud (2002) replicated Pfeffer and Davis-Blake's (1990) findings with data from a sample of 3,352 respondents to the 1989 Canadian General Social Survey of Education and Work, showing that the significant negative relationship between union membership and job satisfaction disappeared when controls for promotional opportu- nities, the pleasantness of the physical work environment, freedom to decide how to do one's work, and the routine nature of the job were added to the equation.

Miller (1990) used a sample of approximately 2,800 of young male workers (15- to 25-year-olds) from the 1985 Australian Longitudinal Survey to examine differ- ences between union and nonunion workers' satisfaction with wide variety of physi- cal, psychosocial, and job task characteristics, as well as promotional opportunities, job security, wages, and company policies. Because individual job facet satisfaction scores are usually correlated, one cannot treat comparisons of group means as inde- pendent events, but the general pattern in the data showed that the Australian union members were less satisfied than nonunion workers with most aspects of their job and employment situations. The union effect remained significant when controls for firm location, education, occupation, skill level, experience, and public vs. private sector employment were added to the equations. Although the union members in the sample had a 13 percent wage premium, their satisfaction with pay was not higher than that of

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non-unionists, nor did they report having more of a say in their jobs. Miller (1990) concluded, as had others before him, that the negative relationship between union status and job satisfaction comes from the incentive to unionize in an unpleasant work environment.

In a separate analysis of the union effect on tenure, Miller and Mulvey (199 l), using the same data set, found that being unionized had a stronger positive effect on tenure among young Australians than what Freeman (1980) had discovered among young Americans, in support of the exit-voice hypothesis. The stronger effect of Aus- tralian unions, however, was due more to the unions' ability to limit employer-initi- ated lay-offs than it was to voluntary turnover. Still, there was a significant negative union effect on voluntary quits, which the authors attributed to the exercise of collec- tive voice at the workplace level.

Tentative support for a favorable exit-voice effect on tenure comes from a study of 49,000 unionized public school teachers in New York State which showed that teachers with stronger grievance procedures in 1975-1978 had a lower probability of quitting than teachers whose contracts had weaker grievance procedures (Rees, 1991 ). The study did not include job satisfaction as a variable, however, nor did it have con- trols for other features of union strength that could have influenced turnover deci- sions.

Quitting is the permanent escape from a dissatisfying job. Being absent from work on occasion is a form of temporary escape (or, in the language of absenteeism research, "withdrawal"). If the exercise of union voice succeeds in eliminating unsat- isfactory working conditions, unionized workers should have less reason to be absent. On the other hand, if job satisfaction is lower among union workers, they should have more reasons to be absent. Testing these competing hypotheses with data from the May 1973-1978 Current Population Survey, the 1973 Quality of Employment Sur- vey, and the first five waves of the Panel Survey of Income Dynamics, Allen (1984) found that the probability of being absent was higher among union members than nonunion workers, controlling for industry, occupation, geographic location, educa- tion, gender, race, and marital status. When wages were held constant, absence rates were much higher among union members, suggesting that the wage penalties for be- ing absent are lower for them. Allen (1984) concluded that the results did not support the voice hypothesis, perhaps because unions had not been effective in improving the intrinsically motivating and satisfying aspects of work.

Bender and Sloan (1998) tested the exit-voice hypotheses and alternative expla- nations on a sample of 1,509 full-time employees between the ages of 20 and 60 using data from the 1986-1987 Social Change and Economic Life Initiative Survey of em- ployment conditions in six local UK labor markets. When controlling for firm-level industrial relations climate, they found that the negative relationships between overall job satisfaction, as well as satisfaction with pay, job security, and promotional oppor- tunities were insignificant across gender and occupation (manual vs. non-manual workers). Contrary to early findings by Borjas (1979), but consistent with Kochan

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and Helfman (198 l) and Schwochau (1987), there were no significant union-tenure interactions. They could not completely rule out the reverse-causation hypothesis, however, and concluded that the relative dissatisfaction of unionized workers is due either to a poor industrial relations climate or the propensity to unionize among the already dissatisfied.

Although the conceptual models of the union-job satisfaction relationship have become more sophisticated across studies and time, as one would expect, the ob- stacles to empirical testing imposed by limitations in data sets that have been con- structed for other purposes remain. One can only control for confounding variables when the data are available, which means that we often find gaps between conceptual models and empirical testing. To compound the difficulty of drawing firm conclu- sions about union effects on attitudes, the measures that are available to test hypoth- eses are not the most reliable and valid indicators of the relevant constructs. In other words, most of the large-scale probability studies suffer from under-defined equa- tions and questionable operational definitions.

Gordon and DeNisi (1995) circumvented these problems by examining the ef- fects of union membership on job satisfaction in two samples of public sector em- ployees where the union members and nonmembers within each sample worked for the same employer and were covered by the same collective bargaining contract. They found no significant effects of union membership on job satisfaction when control- ling for demographic characteristics (age, education, race, and gender). A second study of job satisfaction and turnover intensions among union and nonunion faculty members organized by the American Association of University Professors (AAUP) also showed that union membership had no significant effects on job satisfaction, nor was it related to turnover intensions, when controlling for rank, length of service, perceptions of faculty influence in decision making, and political liberal values. Union members had more liberal political values and were more concerned about lack of faculty influence in university governance than nonunion faculty, however.

In a comparative study of manufacturing employees in the United States and Japan, Lincoln and Boothe (1993) examined the role of job characteristics - - skill requirements and job complexity, discretion or control over work, Quality Circle mem- bership, expectations about promotion, and earnings - - as intervening variables be- tween union membership and job satisfaction and organizational commitment. Given the history of union reluctance to support, much less champion, job redesign and employee participation programs (Kochan et al., 1994), and earlier studies which showed that union members were less satisfied than nonunion workers with job con- tent and supervision (Kochan and Helfman, 1981; Berger et al., 1983; Schwochau, 1987), they hypothesized that a negative union effect on employee attitudes in U.S. firms would be caused by poor job quality. In contrast, Japanese enterprise unions with their emphasis on union-management cooperation and an absence of restrictive work rules and narrow job classifications should have a positive effect on job satis- faction and commitment.

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Data came from a 1982-1983 survey, developed especially for the study, of 2,788 rank-and-file employees from 51 manufacturing plants in Indiana and 1,894 workers from 43 plants within one geographic region in Japan. Results showed that quit rates in the United States and Japanese firms were similar, with unionized employees less likely than nonunion employees to leave their jobs. Job satisfaction was significantly lower among the Japanese workers, while organizational commitment levels were similar. As expected, there were significant negative union effects on both job satis- faction and organizational commitment in the U.S. sample. These dropped sharply, but remained significant, when controls for job quality, promotion expectations, and earnings were added to the equations. Wages were higher in unionized firms, although the union differential shrank when individual and plant characteristics were added as controls (which makes sense in a within-state manufacturing labor market), but the differences in job complexity, work autonomy, promotion expectations, and Quality Circle membership remained substantial.

In the Japanese sample, there was no significant union effect on job satisfaction, but contrary to expectations, there was a small negative union effect on commitment. Japanese unions, however, were associated with employees having greater job com- plexity, autonomy, and opportunities for promotion while U.S. unions were associated with lower job quality. Lincoln and Boothe (1993) concluded that the difference in the intrinsic job quality between union and nonunion jobs in the U.S. plants, everything else being equal, not a politicization of the work force, drives the negative union effect on job satisfaction. They suggested further that had their measures of job at- tributes been better - - that is, more reliable - - and more comprehensive, the union effect on job attitudes would have been insignificant.

The conclusion we can draw from the research reviewed so far is that the union effect on job satisfaction is determined primarily by the differences between union and nonunion workers' experiences with job content, wages, and workplace industrial relations climate. Thus, when all these factors are held constant, evidence of a job satisfaction differential should disappear. But the story does not end here. The most recent study of why union members are unhappy has a surprising conclusion.

With data on 18,012 employees in 2,192 organizations drawn from the 1998 British Workplace Employee Relations Survey (WERS), Bryson et al. (2003) were able to examine, in a ten-step processes, every alternative explanation that has been offered for the negative union effect on job satisfaction. The WERS data set is unusu- ally rich for a national probability survey, coming from matched samples of senior workplace managers and a random samples of their respective subordinates. It con- tains four job satisfaction items: satisfaction with pay, the amount of influence expe- rienced over the job, the sense of achievement from work, and the respect received from supervisors and line management. For this study, the items were combined into an overall satisfaction score. In addition, Bryson et al. (2003) examined satisfaction with pay. 6

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As expected, union members reported significantly lower job satisfaction than nonmembers, and continued to do so when demographic characteristics were held constant, although the pay satisfaction gap narrowed. When occupational and job characteristics were added to the equations, however, the coefficient on union status dropped substantially, showing that union members were most frequent in occupa- tions and jobs where job satisfaction is low. There were no significant effects of work- place heterogeneity - - industry, size, region, work force composition, establishment characteristics, and union density. Perceptions of the industrial relations climate and respondents' opinions of trade unions, on the other hand, reduced the union member- ship coefficient. Controlling for pay and hours of work increased overall job dissatis- faction - - evidence of the compensating effect of a union wage premium.

By using propensity score matching to control for the problem that union mem- bership is not independent of job situations and occupational and job characteristics, Bryson et al. (2003) found that union members were less satisfied with their jobs than they would have been had they not become members. Union members were less sat- isfied than a perfectly matched sub-sample of nonmembers with all aspect of the their jobs, although the wage premium served to alleviate some of the dissatisfaction. But higher wages were not sufficient to compensate for other aspects of the job. Addi- tional controls for union strength and union voice (accomplished by removing union activists from the analyses) did not narrow the satisfaction gap between union mem- bers and nonmembers. Finally, instrumenting for membership using the employer's perception of the workplace industrial relations climate, the association between mem- bership and dissatisfaction apparent when controlling for observable individual, job, and workplace characteristics disappeared, leading the authors to conclude that the association was accounted for by unobservable factors by which individuals become union members.

In summary, most of the difference in job satisfaction was accounted for by occupational, job, and workplace characteristics, which matches the findings from previous studies. At the end of the day, however, there remained a small but signifi- cant negative union effect on job satisfaction that could not be ascribed to anything but "unobserved heterogeneity." What kinds of individual differences are left?

The authors suggest that there are certain innate personal characteristics that predispose union members to be less satisfied with their jobs than other people, and also to join unions. For example, people with higher expectations of, and aspirations towards, their work might be more likely to unionize and also have their aspirations thwarted.

Models of, and research on, union voting include a number of attitudinal vari- ables, such as job satisfaction, perception of equity, trust in management, feelings of powerlessness, or attitudes towards unions (for a summary of the psychological re- search, see Barling et al., 1990). The research is silent on the role of personality char- acteristics as predictors of the pro-union vote, 7 but as we discussed earlier, there is ample empirical evidence that dispositions influence job attitudes (Arvey et al., 1989;

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Staw and Ross, 1985; George, 1996). We return to this research when we examine the findings from the tests of the exit-voice model in light of theories and research on jobs satisfaction and turnover. First, however, we examine the union effect on another attitudinal factor of relevance to the exit-voice model: organizational commitment.

VII. Some Observations on Unions and Organizational Commitment

Organizational commitment is defined as the extent to which an employee identifies with the employer, wants to remain with the organization, and is willing to exert extra effort on its behalf (Mowday et al., 1979). Affective commitment, or the emotional attachment of the employee to the organization, has a number of behavioral conse- quences, such as retention, work attendance, citizenship behavior, and, under certain circumstances, job performance (Hulin, 1991; Meyer and Allen, 1997).

In Freeman and Medoff's (1984) adoption of the exit-voice model, organiza- tional commitment is a latent variable. Its presence is implied, embedded in organi- zational tenure. Hirschman (1970), in his description of the exit-voice-and-loyalty model, defined loyalty as an attachment to the organization that helped determine people's decisions to exit or stay and use voice. Loyal employees remain with the employer and strive to correct dissatisfying conditions if they have a voice mecha- nism available, while the emotionally unattached leave. Most studies based on Hirschman's model have ignored the loyalty component, making an implicit assump- tion that if employees decide to stay, they must be loyal. An exception is Boroff and Lewin's (1997) study of the relationship between grievance filing and turnover inten- tions, in which loyalty was conceptually defined and measured as organizational com- mitment.

Organizational commitment is not the same as tenure. It is one of many determi- nants of voluntary turnover and is therefore negatively correlated with intentions to quit (Meyer and Allen, 1997; Griffith and Hom, 2001 ). It is positively correlated with job satisfaction, but it is a different construct with different psychological properties, s Because union members are more likely to remain with their employer despite poorer attitudes towards their job, we might expect a positive relationship between union membership and organizational commitment, irrespective of job satisfaction levels. The results of the Lincoln and Boothe (1993) study, however, showed that the union effect on organizational commitment was negative, especially among U.S. employ- ees, even when job quality, wages, and promotional opportunities were held constant. In essence, the results for commitment mirrored the results for job satisfaction. Un- fortunately, there were no controls for job satisfaction in the commitment regressions, and no information about the commitment-job satisfaction correlations, so it is not possible to uncover the pure effect of union status on commitment.

Hammer et al. (1981) examined the effect of voice and loyalty on absenteeism among workers in a unionized manufacturing plant that had been bought out by man- agers, rank-and-file employees, and local citizens to avoid closure. Drawing on Hirschman's model, they expected that job satisfaction, amount of stock ownership

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(financial commitment), and organizational commitment would be negatively related to voluntary (unexcused) absenteeism if workers perceived the union as an effective voice mechanism. With controls for occupational level, age, and job involvement, job attendance was determined primarily by financial and organizational commitment and union voice, which provides some support for the EVL model. Job satisfaction was unrelated to absenteeism and only weakly correlated with perceptions of union voice. There was also no significant relationship between perceptions of union voice and commitment.

By and large, studies of organizational commitment have paid scant attention to the role of union status. The exception is a small subset of studies of union commit- ment that have examined the causes of dual loyalty or dual allegiance - - that is, union members' commitment to both the employer and the union. Unfortunately, this line of research is by definition confined to union members and can therefore not be used to test hypotheses about union-nonunion differences. The one consistent finding from the dual loyalty studies of some relevance to the exit-voice model is that positive correlations between organizational and union commitment are conditional on the industrial relations climate. Where relations between management and labor are posi- tive, there is dual loyalty. Where labor relations are poor, the commitment correla- tions are either insignificant or negative (see Gordon and Ladd, 1990, for a summary of this research). Again we see the importance of the industrial relations climate as a contributor to employee job attitudes.

VIII . Conclusion

The research on the exit-voice hypothesis, both in the United States and abroad, shows convincingly that most of the variance in the negative union effect on job satisfaction can be accounted for by job quality, industrial relation climate, and wages. Union members see their jobs as less attractive than do nonunion workers in terms of skill requirements, task complexity, the amount of autonomy or discretion available, and opportunities for promotion. Union members also perceive the supervision they re- ceive and the labor-management relations they experience as less satisfactory. They are, however, clearly better off with respect to wages, benefits, and pensions. But when it comes to job satisfaction, the economic advantages of union jobs are not sufficient to compensate for job content and work environment factors.

It comes as no surprise to the job satisfaction researcher that job content - - the nature of the tasks people are given to do - - weighs heavily in overall job satisfaction scores. While there are individual differences in the degree to which people prefer intrinsically interesting jobs, there is ample empirical evidence showing that autonomy, skill variety, complexity, challenge, and advancement are important determinants of people's affective reactions to their jobs (Deci, 1975; Hackman and Oldham, 1980; Kanfer, 1990). The relative importance of job content factors to overall job satisfac- tion is also mirrored in the most commonly used measures of job satisfaction (Weiss et al., 1967).

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It may be more surprising from a theoretical perspective that the industrial rela- tions climate should have a significant effect on job satisfaction since it is part of the context in which jobs are embedded and therefore not experienced as directly as are work tasks. On the other hand, an adversarial labor-management climate may trans- late to unfriendly supervisors and tense interpersonal relations, which certainly can be experienced directly. The data from the dual commitment studies (Gordon and Ladd, 1990) and the Freeman and Roger (l 999) survey provide additional empirical evidence for the value workers ascribe to non-adversarial, cooperative industrial rela- tions.

One could argue, based on the research evidence, that there is not much support for the exit-voice hypothesis. By the time we control for demographic characteristics, job characteristics, industrial relation climate, and labor market factors, the union effect on job satisfaction is small. It is not insignificant, however, which means that we still need to explain what it is that can make union members different from non- union workers. Freeman and Medoff (1984) argued that the job satisfaction of union members declines because the workers become politicizied through personal experi- ences with grieving dissatisfying events and conditions and bargaining to get them improved. 9 A politicizied labor force may contribute to more adversarial labor rela- tions, which could mean that at least a part of the union effect on job satisfaction, which Freeman and Medoffidentified as an inevitable result of having a union job, is accounted for by the industrial relation climate. Studies have not examined if union members are more primed to detect dissatisfying events than are nonunion workers, or whether they become more primed to do so with tenure in union jobs as one would expect if the explanation is correct.

We believe a more likely answer can be found in job satisfaction theory: Union members have different expectations, values, or frames of reference for evaluating their job outcomes than nonunion workers. It is worth noting that early tests of the exit-voice hypothesis recognized, somewhat obliquely, that union members evaluated their jobs through a different lens than nonunion members. An example is Schwochau's (1987) hypothesis that union workers weigh outcomes differently than nonunion work- ers, with a subsequent effect on job satisfaction. Schwochau also made an implicit frame-of-reference argument by suggesting that union members will evaluate wages and benefits higher than other job outcomes because they have learnt that what the union works to obtain in collective bargaining is valuable. Berger et al.'s (1983) find- ings about the importance union members place on pecuniary job outcomes fit this argument as well. Interestingly, the recognition that union members may have differ- ent internal standards for evaluating their jobs was lost in later studies as the focus shifted to more elaborate controls for job and work environment characteristics. Bryson et al. (2004) interpreted their significant effect of worker heterogeneity on job satis- faction to mean that union members seek out union jobs (or vote for union represen- tation) because they have higher job aspirations and expectations to begin with, an argument that also recognizes a frame-of-reference effect. It is not possible based on

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research to date to determine whether union members arrive at their expectations and frames of reference because of their experiences in union jobs, or search out union jobs because they have higher internal standards for what a good job should contain than workers who opt for nonunion status.

Explaining the exit-voice paradox with respect to turnover is relatively easy. Turn- over theory and research have shown that quitting is not an obvious response to lack of job satisfaction. As long as there are less costly ways to adapt to the dissatisfying facets of one's job, one is not likely to leave. The costs of quitting extend beyond pure economic calculations, because leaving the job often involves a separation from a community with a network of friends and relations, and the uprooting of family mem- bers from their jobs and schools. Economic utility models do not take into account the psychological costs of leaving behind the investments workers have made over time in jobs and communities. Certainly some union workers quit, presumably in response to the dissatisfaction. But many stay, because, as the research on turnover has shown, the path of least resistance in coping with job dissatisfaction is to adapt.

We disagree with Freeman and Medoff's (1984) hypothesis that the dissatisfac- tion union workers report in attitude surveys is not "real," in the sense that it does not indicate true attitudes. Implicit in their argument is that workers' true attitudes to- wards the job are based on objective circumstances only, that is, job outcomes that can be quantified in terms of dollars and cents. As we have tried to show in our discus- sion of job satisfaction theory and research, however, people's affective, or emotional, reactions to their jobs are based on a number of outcomes, of which wages, benefits and job security are but a subset. The job (dis)satisfaction of union workers, when measured with reliable and valid instruments that cover all important facets of the job, is real.

What are the practical or policy implications of this reality? What, if anything, should be done to correct it, and would it be worth the effort? There are two points to consider before one recommends action. One is the positive union effect on retention. To the extent that unionized workplaces have relatively low rates of dysfunctional turnover, that is, voluntary exit of workers who are trained or highly skilled and there- fore not easily replaced, unionized employers are ahead. Turnover rates are high in the United States, and they are costly (Cascio, 2000; Griffith and Hom, 2001). Second, we need to keep the magnitude of the difference in job satisfaction scores between union and nonunion workers in perspective. Union workers are only less satisfied - - they are not desperately dissatisfied.

However, there are still good reasons for being concerned about the lower levels of job satisfaction in union workplaces. One is the positive relationship between job satisfaction and job performance. For decades it was thought to be of little practical significance (Petty et al., 1984; Iaffaldano and Muchinsky, 1985), but a recent meta- analysis has estimated the mean true correlation between the two to be .30 (Judge et al., 2001), which is sufficiently large to be important. The relationship is bidirec- tional, in the sense that job satisfaction can lead to better job performance, especially

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in complex jobs requiring worker discretion and initiative, and job performance can cause job satisfaction when desirable job outcomes are contingent on performance (Vroom, 1964; Hulin, 1991 ; Judge et al., 200 I).

There is also the argument that job satisfaction is a good in itself irrespective of economic utility. Both employers and unions ought to be interested in ensuring that the workers they employ and represent, respectively, are satisfied with their jobs. Our review of the research suggests strongly that union workers would be more satisfied with their jobs if the quality of job content was higher and labor-management rela- tions were more positive. Both of these conditions can be met with the adoption of a union-management partnership model that allows for participation of workers in de- cisions about the execution of their jobs and a redesign of work at the point of produc- tion. Over the past two decades the employment relationship in many U.S. organiza- tions has been restructured (Batt and Appelbaum, 1994; Kochan et al., 1994). Adop- tion of participatory work patterns, such as online work teams, increased in American workplaces throughout the 1980s and 1990s (Osterman, 2000), and direct worker participation has been recommended as a new arena for industrial relations (Kochan and Osterman, 1994).

There is disagreement about both the economic and labor-management relations benefits of participatory employment patterns (Godard and Delaney, 2000; Kochan, 2000). Their impact on job performance seems to be modest (Wagner, 1994), but there is consistent evidence that intrinsically interesting jobs and direct worker par- ticipation increase job satisfaction (Miller and Monge, 1986; Cohen and Bailey, 1997; Applebaum et al., 2000; Hunter et al., 2002). Unions have been slow in placing work redesign and other direct forms of worker participation on their agendas, but where they have made an effort to work with the employer to improve job content, labor- management relations have also improved (Kochan and Osterman, 1994; Rubinstein and Kochan, 2001). Based on the research to date, there is room for the claim that it would be worth the effort of both unions and employers to collaborate on designing participatory work structures.

Our final point is aimed at researchers. Job satisfaction is not a simple construct. A complete model of its causes and consequences goes beyond an external, objective assessment of job outcomes to include the job holder's personality, past work experi- ences, and present economic and social environment. Modeling job satisfaction re- quires a relaxation of the assumptions behind the standard economic model of unions. First and foremost, we must acknowledge that the utility of a job includes both extrin- sic and intrinsic outcomes as well as work environment characteristics. Secondly, workers are not always able to move freely in an open, munificent labor market. Only a finite number of jobs is available that provide the kinds of economic benefits union workers enjoy, and it may not be possible for union members to meet their economic obligations by moving to jobs with lower financial returns. It must also be recognized that workers are not purely rational economic decision makers. Noneconomic, non- job-related concerns can influence job choice and turnover decisions. This does not have to mean that people do not make rational choices based on the best information

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they have available, only that there are nonpecuniary variables in their personal equa- tions. Third, it should not be assumed that worker heterogeneity is random error. There are true individual differences, beyond demographic characteristics, that cause atti- tudes and behaviors. If research on the union effect on job satisfaction, or on organi- zational commitment, is to progress, researchers must pay more attention to the com- plex nature of these variables. Pure economic theories are too simple as models of the causes and consequences of job attitudes.

NOTES *We acknowledge helpful comments from Rose Batt and Ronald Seeber on an earlier draft of this study.

IThe union wage premium is not a threat to job security as long as the demand for union labor is inelastic, or labor costs can be transferred to consumers, but these conditions have become rare, at least in the private sector (Bennett and Kaufman, 2002).

2Data on job separations from the Panel Study of Income Dynamics show that quit rates of nonunion workers were more than twice the quit rates of union members between 1976-1981, and the gap increased between 1986-1991 (Polsky, 1999).

3Extraversion and Neuroticism, or Emotional Stability, are part of the "Big Five" personality traits. The Five Factor model of personality has both conceptual and empirical credibility (Costa and McCrae, 1988; George, 1996).

4Job satisfaction scores already contain an importance component, which means that controlling for im- portance when regressing job satisfaction on union status will remove part of the true job satisfaction variance from the relationship (Ewen, 1967).

5According the theory of cognitive dissonance, perceptions, or attitudes, must be consonant with (follow from) behavior, or vice versa. If employees expend efforts to improve the workplace, it follows that they will perceive the workplace as improved.

~'The correlation between overall job satisfaction and satisfaction with pay will be artificially high because pay satisfaction appears on both sides of the equation. The pattern of results should therefore be very similar for the two indicators.

7The tiny number of studies that have a examined personality characteristics are dated and inconclusive.

8Meta-analyses of studies examining the job satisfaction-commitment relationship show an average corre- lation of .44 (Kinicki, McKee-Ryan, Schriesheim, and Carson, 2002).

~)The explanation Freeman and Medoff gave of union members "becoming politizied" is very close to the definition of instrumental conditioning (learning), whereby the job itself becomes associated with a series of unpleasant experiences (grieving and bargaining) and ends up producing negative feelings. It is doubtful that this is what they had in mind, however,

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