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Impact Of The Spillover Effect In Union Wage Settlements

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A spillover is when employers try to avoid unionization by offering workers the wages, benefits and working conditions won in rival unionized firms. Over the past three years union wage settlements have declined, however, the impact of the spillover effect cannot be understated. Therefore, nonunion management continues to enjoy the freedom from union “interference” in decision-making and the workers receive the spillover of rewards already obtained by other organizations that are

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