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There is considerable debate over whether bargaining behaviour and outcomes in the 1980s differs from traditional American industrial relations practices. This dissertation considers the possibility of parallel changes in Canadian industrial relations. Econometric models are developed to analyze changes in Canadian union wage and nonwage outcomes. The empirical models are estimated using longitudinal micro data from the Canadian manufacturing sector, covering the period 1969 to 1988. The models specify wage growth and the likelihood of contracts containing employment security provisions as functions of environmental, organizational and bargaining process characteristics. The study focuses on two main questions. First, do union wage settlements in the 1980s indicate a break from the wage determination structure of the previous two decades? Second, have collective agreements in the 1980s placed more emphasis on employment security in the 1980s than they did previously? In answer to the first question, two types of structural change are identified. Wage growth decreased in the 1980s even after controlling for environmental conditions, and the response of wage growth to environmental variables also changed. To answer the second question, a model of employment security determination is estimated. There is strong evidence that there has been a structural change in the employment security process. Also, there is no consistent evidence that the decline in wage growth was accompanied by an increase in the frequency of employment security provisions in collective agreements. Furthermore, unions have been able to obtain only the less favourable types of employment security provisions. In conclusion, the empirical results of both the wage settlement and employment security outcome equations suggest that changes in the external environment induced firms to adjust their business strategies, including industrial relations practices. This study provides evidence of a transition in Canadian industrial relations that is consistent with the work of several American scholars.
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