Effects of Union-Management Environment and Employee Voice in Labor Unions: Evidence from Union Workers of a Multinational Company in Honduras

Abstract

ABSTRACT

Labor unions are organizations whose main purpose is to represent all workers and protect their rights and interests. As such, labor unions are one of the most important channels to provide workers with a voice. In this research, the aim is to examine whether positively perceived employee voice in their labor unions will lead to higher satisfaction with collective bargaining results and employee compliance. In addition, it aimed to understand the relationship between perceived employee voice and a positive union-management environment. In addition, the relationship between a positive union-management environment and satisfaction with collective bargaining results and employee compliance was examined. According to the procedural justice theory, perceptions of fairness of decision-making processes by employees are believed to promote feelings of compliance. A positive union-management environment was tested as a mediator in the relationship between perceived employee voice and satisfaction with collective bargaining results and perceived employee voice and employee compliance. A quantitative study was conducted, and respondents were asked to complete a paper-and-pencil questionnaire related to their perceptions on employee voice, union-management environment, satisfaction with collective bargaining results and employee compliance. The data gathered from 205 union workers was analyzed with the use of SPSS and the Smart-PLS software. It was found that perceived employee voice had a positive effect on satisfaction with collective bargaining results and a positive union-management environment. In addition, a positive union-management environment was found to mediate the relationship between perceived employee voice and satisfaction with collective bargaining results. Perceived employee voice and a positive union-management environment did not show any relation to employee compliance.

ABSTRACT

Labor unions are organizations whose main purpose is to represent all workers and protect their rights and interests. As such, labor unions are one of the most important channels to provide workers with a voice. In this research, the aim is to examine whether positively perceived employee voice in their labor unions will lead to higher satisfaction with collective bargaining results and employee compliance. In addition, it aimed to understand the relationship between perceived employee voice and a positive union-management environment. In addition, the relationship between a positive union-management environment and satisfaction with collective bargaining results and employee compliance was examined. According to the procedural justice theory, perceptions of fairness of decision-making processes by employees are believed to promote feelings of compliance. A positive union-management environment was tested as a mediator in the relationship between perceived employee voice and satisfaction with collective bargaining results and perceived employee voice and employee compliance. A quantitative study was conducted, and respondents were asked to complete a paper-and-pencil questionnaire related to their perceptions on employee voice, union-management environment, satisfaction with collective bargaining results and employee compliance. The data gathered from 205 union workers was analyzed with the use of SPSS and the Smart-PLS software. It was found that perceived employee voice had a positive effect on satisfaction with collective bargaining results and a positive union-management environment. In addition, a positive union-management environment was found to mediate the relationship between perceived employee voice and satisfaction with collective bargaining results. Perceived employee voice and a positive union-management environment did not show any relation to employee compliance.