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Trade Union Membership

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page 1page 2page 3page 4page 5page 6page 7page 8page 9page 10page 11page 12page 13page 14page 15page 16page 17page 18page 19page 20page 21page 22page 23page 24page 25page 26page 27page 28page 29page 30page 31page 32page 33page 34page 35page 36page 37page 38page 39page 40page 41page 42page 43page 44page 45page 46page 47page 48page 49TITLE: Trade Union Membership andEmployee Participation in Bulgaria:1989-1992AUTHOR: Derek C. JonesTHE NATIONAL COUNCILFOR SOVIET AND EAST EUROPEANRESEARCH1755 Massachusetts Avenue, N.W.Washington, D.C. 20036PROJECT INFORMATION:'CONTRACTOR:Hamilton CollegePRINCIPAL INVESTIGATOR:Derek C. JonesCOUNCIL CONTRACT NUMBER:808-03DATE:July 6, 1993COPYRIGHT INFORMALTIONIndividual researchers retain the copyright on work products derived from research funded byCouncil Contract. The Council and the U.S. Government have the right to duplicate written reportsand other materials submitted under Council Contract and to distribute such copies within theCouncil and U.S. Government for their own use, and to draw upon such reports and materials fortheir own studies; but the Council and U.S. Government do not have the right to distribute, ormake such reports and materials available outside the Council or U.S. Government without thewritten consent of the authors, except as may be required under the provisions of the Freedom ofInformation Act 5 U.S.C. 552, or other applicable law.The work leading to this report was supported by contract funds provided by the National Council forSoviet and East European Research. The analysis and interpretations contained in the report are those of theauthor.CONTENTSAbstractiIntroduction1Trade Union MembershipUnion Members Versus Non-Union Members2Choice of a Particular Union : CITUB and KT PODKREPA6Dynamics of Union Membership8Employee ParticipationEmployee Views of Their Influence11Management Views of Employee Influence13Variation in Levels of Perceived Participation15Conclusions18Endnotes21Appendix23References24Tables25Trade Union Membership and Employee Participation in Bulgaria:1989 - 1992.abyDerek C. Jones"AbstractBy drawing mainly on a survey of 4600 individual employees in a sample of 371establishments in Bulgarian manufacturing in 1992, we provide information in the areas ofunion membership and employee participation. Average union densities in manufacturing ofmore than 70% indicate that individuals are committed to the new unions. The ability tochoose from among competing unions is indicated by the high levels of membership in andmovement between the two principal confederations, CITUB and KT Podkrepa. Also wecompare characteristics of (i) union members and non-union members; (ii) CITUB membersand KT Podkrepa members; (iii) those who have left or switched unions with those whohave stayed in a union. Usually we find substantial and statistically significant differencesamong and between members in each of these groups. Preliminary hypotheses are offered toexplain the reasons for these differences in the scope, nature and dynamics of trade unions.On employee participation we ask both employees and managers for their perceptions of thenature and extent of the role of employees in decision making by using a six-point scale, andwith separate responses for each year from 1989-1992. Our findings indicate that employeesbegan to assert a greater measure of power after 1989. Equally there do not seem to havebeen more than a few cases of genuine "worker self-management" and the average level ofemployee participation is quite modest. Also there are potentially important discrepancies inthe views of the emerging principals in the collective bargaining arena as to who has whatdegree of power and on what issues. Policy suggestions are in the Conclusions section.Preliminary. Not for quotation or citation without the consent of the author.'Department of Economics, Hamilton College, Clinton, NY, 13323`cThe author acknowledges support from NSF- 9010591, the National Council for Sovietand East European Research, and the Central and Eastern European Team of the ILO. Thepaper has benefited from comments by Jeffrey Pliskin and the diligent research assistanceprovided by Murat Ozvardar and Kosali Ilayperuma.- i -IntroductionThe fundamental political changes that began in Bulgaria in November 1989 with thecollapse of the Zhivkov regime have triggered profound changes in labor markets andassociated institutional arrangements. Reflecting the abandonment of the communist unionmodel, some of the key institutional changes for labor unions, such as the emergence of newand plural labor unionism and the development of tripartite structures, are well documented(e.g. Jones, 1992). Similarly, the typically limited nature of formal "self-management" inBulgaria, during this period (and under the Labor Code of 1986) has been critically reviewedand evaluated (e.g. Jones and Meurs, 1991).At the same time, the level of detailed hard data is seriously incomplete on issues asbasic as: the levels of union membership; the characteristics of union members compared tonon-union members; and the ways in which different groups perceive the level and the natureof their influence over decision-making. The key task of this paper is to respond to thelimited nature of the available data by providing some of the first "stylized facts" on thesematters. This is done by drawing mainly on the Bulgarian worker survey (BWS)--a survey of4600 individual employees1 in a sample of 371 establishments in Bulgarian manufacturing in1992. (See the appendix for a summary description of key features of the method andobjectives of the BWS and parallel surveys.) The paper is organized under two broadheadings.First we examine diverse issues relating tounion membership.We begin bycomparing characteristics (e.g. gender, age, experience, income and likelihood of holdingasecond job) for those who are union members with those who are not. Next, for those whoare union members, we first examine whether the characteristic member of CITUB isdifferent from the average member in KT Podkrepa; we also examine the impact of factorssuch as size, industry, region and occupational group on union membership. Finally, bycomparing the characteristics of those who have left or switched unions with those who havestayed in a union, we analyze the dynamics of union membership.The second set of issues concernsemployee participation.During this period theprincipal formal set of


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