ECS2604 ASSIGNMENT 3
SEMESTER 2 2023
DISCLAIMER: Extreme care has been used to create this document, however the contents are provided any representations
or warranties, express or implied. This document is to be used “ as is ” without for comparison, research and reference purposes
ONLY. Directly submitting and/or reselling/ distribution / reproduction any part of this document is not permitted AVOID
PALAGIARISIM . PUT IT IN YOUR OWN WORDS
NAME & SURNAME:
STUDENT NUMBER:
MODULE:
ASSIGNMENT NUMBER:
UNIQUE NUMBER:
1.1 Threat Effect' in Discouraging Workers from Joining a Union According to threat effect refers to the
increase in the non-union wages that is offered by an employer in the non-unionised sector in response
to the threat of unionisation (Ciptagustia & Kusnendi, 2019). The employer thus hopes to discourage
workers from joining the union by paying wage rates that are more comparable to union wage rates. In
other words, the 'threat effect' entails to the perception among workers that if they join a union, they
may face negative consequences or retaliation from their employers.
This perception can act as a deterrent for workers considering unionization.
The effectiveness of the threat effect in discouraging workers from joining a union can vary
depending on several factors:
Employer tactics
The employer hopes to discourage workers from joining the union by paying wage rates that are
more comparable to union wage rates. The threat effect might increase the wages in the non-
unionised sector. The differential now appears to be only higher by the amount set by the employer.
SEMESTER 2 2023
DISCLAIMER: Extreme care has been used to create this document, however the contents are provided any representations
or warranties, express or implied. This document is to be used “ as is ” without for comparison, research and reference purposes
ONLY. Directly submitting and/or reselling/ distribution / reproduction any part of this document is not permitted AVOID
PALAGIARISIM . PUT IT IN YOUR OWN WORDS
NAME & SURNAME:
STUDENT NUMBER:
MODULE:
ASSIGNMENT NUMBER:
UNIQUE NUMBER:
1.1 Threat Effect' in Discouraging Workers from Joining a Union According to threat effect refers to the
increase in the non-union wages that is offered by an employer in the non-unionised sector in response
to the threat of unionisation (Ciptagustia & Kusnendi, 2019). The employer thus hopes to discourage
workers from joining the union by paying wage rates that are more comparable to union wage rates. In
other words, the 'threat effect' entails to the perception among workers that if they join a union, they
may face negative consequences or retaliation from their employers.
This perception can act as a deterrent for workers considering unionization.
The effectiveness of the threat effect in discouraging workers from joining a union can vary
depending on several factors:
Employer tactics
The employer hopes to discourage workers from joining the union by paying wage rates that are
more comparable to union wage rates. The threat effect might increase the wages in the non-
unionised sector. The differential now appears to be only higher by the amount set by the employer.
