Trade Unionism and Enterprise Performance in Senegal
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Date
2021-04-19
Authors
Ngom, Anta
Journal Title
Journal ISSN
Volume Title
Publisher
AERC
Abstract
In line with efficiency wage theory, a high rate of trade unionism can be a source of
higher production costs for enterprises, but also a source of enhanced efficiency. The
aim of this study is to quantify the net effect of unionism on enterprise performance
in Senegal. Based on data from the World Bank Enterprise Survey 2014, two models
have been developed for the study: a labour productivity model and an average
wage model based on the proportion of employees affiliated to a union. The study’s
findings show a negative relationship between trade unionism and labour productivity
(performance indicator) for large enterprises. Specifically, Senegalese enterprises
which have trade unions perform poorly in terms of labour productivity. However, the
study also finds that the existence of a union in an enterprise has a positive effect on
employee remuneration: unionized workers have higher wages than non-unionized
workers.
Description
Keywords
unions, , labour productivity, , wages, , Senegal