Abstract
One way an organization can increase economic gains is by aligning its compensation strategy with its overall strategy. Unions can benefit from this transition to alternative reward strategies (ARS). But they have resisted ARS because of unfamiliarity, a backlash from their membership, and fear of being co-opted by employers. Benefits of ARS for unions include the opportunity to protect wages during turmoil and employee involvement in shaping overall strategy. This article outlines the prerequisites that are necessary for unions to promote ARS, such as a long-term bargaining relationship, existence of a pre-entry closed shop, and a stable membership base with a majority of employees that are organized.
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