One of the defining features of gig-based workers is that they usually lack any means of pooling their interests and negotiating with platforms as a whole rather than millions of individuals.  The importance of this is underlined by research from Cornell University, which shows that temp workers can see a 21% rise in their average income when they’re employed by companies with a unionized workforce.

“What is surprising is that wage premium only holds for unions that go head-to-head, battling with employers,” the researchers say. “Those unions that ‘cooperate’ or ‘partner’ with employers do not achieve wage gains for temps.”

The study found that when unions are able to work constructively with employers it not only benefits union members but also the economy at large.

Wage gap

The researchers set out to explore the impact collective bargaining has on the so-called “temp wage gap”, which describes the wage penalty often attached to the fixed-term contracts of temporary workers.

While there was an expectation that unions would be able to reduce this pay penalty, the authors were surprised that this only appeared to be the case when there was a more adversarial relationship between management and the union.

“The findings may rankle some ‘progressive’ unionists,” the researchers say. “Old-school, adversarial, non-cooperative unionization is out of vogue. And there may be a number of good reasons why. But at least with respect to helping non-traditional or non-core workers, unions are much more helpful when going head-to-head with management, rather than partnering with them.”

Employee relations

The researchers analyzed employee data from around 2,500 workplaces, with the data revealing the shrinking nature of the pay gap between permanent and temporary workers in unionized workplaces, and especially in workplaces with a frosty relationship between management and the union.  When relations are more cordial, it only seems to be permanent workers who benefit, with temps frozen out of any gains secured.

The researchers believe that when relationships are more adversarial, it’s more likely that the union will feel like they’re representing all workers and not just their core, permanent members.  While this doesn’t mean they don’t prioritize their own members, it does mean they don’t put their needs at the expense of non-core workers.

Of course, there is also a rational benefit for maintaining higher wages for temp staff, as then managers will be less tempted to substitute (expensive) permanent staff for temporary workers.  This often isn’t the case in a more cooperative relationship between managers and the union, so the union is less inclined to push the chances of temp workers as strongly.