The union default: Free-riding solutions

Abstract

A union default would empower unions to extend membership and representation to nonunion employers but still allow workers to opt-out and, thereby, free-ride. Though most workers would retain membership, free-riding could still undermine a default. First, propensity to maintain membership is likely to vary, leaving some sectors with too few members for viable, effective representation. Second, public goods research suggests free-riding increases over time when already extant. Third, expectations of widespread future free-riding could discourage workers from recruiting the minimum number of workers necessary to attain the default. We test two solutions—all employees being required to pay union fees or employers paying union fees—to these challenges, examining effects on intention to retain membership and support for a default. We find both have positive impacts upon reducing free-riding.