Union presence, employee relations and high performance work practices

Purpose – The purpose of this paper is to investigate the relationship between unions, employee relations and the adoption of high performance work practices (HPWP). Design/methodology/approach – This study uses survey data collected from the senior members of the human resource management (HRM) function in 189 large Australian organisations. Findings – It was found that unions, when coupled with good employee relations, facilitate the adoption of HPWP and consequently have a positive impact on organisational competitiveness, contradicting the simplistic notion that unions are “bad for business”. Research limitations/implications – This study used cross‐sectional survey data from HRM managers, who while being the best single source of information, may have distorted their responses. Further research is required to confirm these results using several data sources collected from a larger sample over more than one time period. Practical implications – This research has implications for Government and organisation approaches to union presence and management in organisations. Social implications – This research contributes to HRM and organisational competitiveness, which has implications for GDP. Originality/value – This paper contributes to the debate on whether the individual and direct voice provided by HPWP is a substitute for union collective voice, with the associated implication that unions are unnecessary and even destructive to organisation competitive advantage.