Hanbing Fan, Yiming Dong, Dezhuang Hu and Lianfa Luo

Abstract

Purpose– This paper aims to examine whether labour unions influence labour conflicts and this mechanism is different in China compared with other countries.

Design/methodology/approach–This paper uses the data from the China Employer–Employee Survey that interviewed 1,208firms and 10,087 workers in 2016 as the measurement of variables, and it uses Logit regression model to do the empirical research.

Findings–Unions cannot significantly influence labour conflicts. More active unions and unions whose leaders are appointed by thefirms’management are associated with a higher incidence of labour conflicts.

Originality/value–This paperfinds a new mechanism that explains the relationship between unions and labour conflicts. The existing literature states that unions may increase labour conflicts via “monopoly power”and may also mitigate labour conflicts via “voice mechanisms”. This paper’sfindings show that the positive correlation between unions and labour conflicts may be explained by the lack of“voice mechanism”rather than “monopoly power”.The findings imply that labour unions should represent the interest of workers to mitigate the increasing labour conflicts.

Keywords China, Labour conflict, China employer–employee survey, Labour union,Monopoly power, Voice mechanism

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