This paper identifies the influences of labor union on compensation policy in public sector. The focus of research is finding what reasons for the failure of teacher merit pay policy are. Reasons for the failure of merit pay are due to specific circum...
This paper identifies the influences of labor union on compensation policy in public sector. The focus of research is finding what reasons for the failure of teacher merit pay policy are. Reasons for the failure of merit pay are due to specific circumstances in public education, notably the opposition of three teacher unions. Previous research on the influences of labor union on compensation has focused and concluded that labor union pursued equality of pay level between individuals and that organizations with labor unions enjoyed high level pay and wage dispersion than organization without unions.
This study explains how teacher unions made use of power in order to prevent government from executing teacher merit pay system. Teacher unions used very various political strategy to prevent teacher merit pay, for example, public relations through the press, negotiation with political appointees and bureaucrats, giving back of merit pay to government etc.