Are union representatives discriminated against?

Summary This article presents a first estimate of the wages of union representatives and discusses its possible interpretations. After recalling the French institutional context of company bargaining, we explain the theoretical specificities of the strategic interaction between employers and union representatives during this bargaining. In particular, we discuss the reasons why it may be rational for an employer to discriminate against union representatives. Using employer-employee data and an original econometric strategy, we estimate that, under plausible assumptions, union stewards' wages are on average 10% lower than those of their union and non-union colleagues. Several tests suggest that this wage gap may indeed reflect discrimination against stewards. This interpretation is consistent with how union stewards feel: nearly one in two feel discriminated against, and this proportion varies with their observable characteristics in a similar way to their pay penalty.