How unions impact on the state of the psychological contract to facilitate the adoption of new work practices

Carol Gill, Melbourne Business School

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Abstract

This article draws together empirical research in the psychological contract, trust, unions and NWP literatures to draw conclusions on the way in which unions impact on NWP. It finds that strong unions that have a co-operative relationship with management prevent and heal breaches in the psychological contract and facilitate a virtuous trust cycle that is important to the implementation of NWP. This has significant implications for theory and practice, particularly in anti-union institutional contexts that are focused on union avoidance, suppression and substitution.