Paul Gregg

Unions and the incidence of performance linked pay schemes in Britain

Abstract This paper examines the relationship between trade unions and the incidence of share ownership, profit sharing and value added schemes in Britain. The first two schemes are more common in the union sector whilst the third occurs more in non-union establishments. A distinction is made between weak and strong unions and it is found that performance linked pay schemes are in general less likely to be present if an establishment has a strong union rather than a weak one.