Pan-Pacific Conference XXXIV. Designing New Business Models in Developing Economies

The effect of union membership on turnover intentions following psychological
contract breach and violation
Chrysler-Fox, Pharny
University of Johannesburg, South Africa
+27 79 353 5798, pharnyc@uj.ac.za
ABSTRACT
This article reports on the effects of psychological
contract breach and violation on turnover intention
as perceived by convenience sample including
union (n = 182) and non-union (n = 378) members.
Hierarchical regressions were used to examine the
relationships between the variables, followed by
Fisher’s Z-test and Hotelling’s T 2 -tests to explore
the differences between the models. Violation is a
stronger predictor of turnover intention for unionmembers
compared to breach being the stronger
predictor of turnover intention for non-members.
Management as well as trade unions need to be
sensitive towards promises to employees during
renegotiations of the psychological contract content,
especially during periods of change in
organizations.
INTRODUCTION
Organizations need to continuously develop
capabilities to compete in a dynamic context. These
efforts result in changes in organizations (e.g.,
ongoing restructuring) which could lead to an
increase in employees’ perception of psychological
contract breach and violation [1]. Research
evidenced that changes in organizations have a
negative impact on the perceptions of psychological
contract breach and violation that could result in
higher levels of turnover intention [2]. Furthermore,
employees often seek the protection and support of
unions when they experience problems at work [3].
Some OECD member countries evidenced an
increase between 1999 and 2013 in union density
[4], for example Belgium (54.3% to 55.1%), Chile
(12.7% to 15.0%), and Italy (35.4% to 37.3%). The
differences between union and non-union members
pertaining to breach, violation and the impact on
turnover intention have not previously received
attention.
OVERVIEW OF THE LITERATURE
The psychological contract is useful to understand the
relationship between employer and employee. The
social exchange theory [5, p. 91] underpin this
relationship, in particular the mutual exchanges
between the parties that informs the psychological
contract.
Breach and violation of the psychological contract
follow when obligations (created through promises)
are not (fully) fulfilled. Breach is a cognitive
assessment whereas violation which is an emotional
reaction [6].
An interpretation (a cognitive sense-making)
process follows breach and act as a moderator
between
perceived breach and feelings of violation [6], [7]. It
was noted [6] that the reasons for the outcome
(perceived breach) following a search for
explanations [8] will have a “strong effect” (p. 532)
on employees emotions, specifically the intensity [9].
Although violation has been found to be the strongest
predictor on an array of outcomes [10], different
intensities of violation, between groups, have been
reported [10]. However, lower levels of breach do not
necessarily signal lower levels of violation [6], [11],
[12]. The intensity of the emotional reaction depends
on the meaning attached to the breach during the
interpretation process [9].
Turnover intention has been found to significantly
impacted by breach [7], but that violation being a key
influence [10]. Violation has a strong positive
relationship to turnover intention (r = .62) [7].
Research evidenced that breach is positively related
to union commitment [13]. Low levels of fairness and
fulfilment of the psychological contract have been
associated with union membership [10]. Union
instrumentality has a weakening effect on the impact
of breach on violation [14]. Lower turnover rates
among permanent employees have been associated
with the presence of trade unions, in contrast to
temporary employees [10]. It is expected that the
regression coefficients between breach, violation and
turnover intention could be different between union
and non-union members.
Following the overview, the following questions are
posed:
1: Do breach and violation predict turnover
intention?
2: Are there significant differences between the
models for union and non-union members?
3: Are there significant differences in the structure
of the models between union and non-union
members?
RESEARCH DESIGN
Approach. A cross-sectional online survey was
conducted to gather data from respondents using
convenience sampling.
Sampling and participants. The sample consisted
of 560 employees, including 55.4% males. Only
26.1% of the respondents held a degree with 12.1%
having no formal qualification. The majority of the
respondents were operators (40.9%). The mean age
was 36.27 years (SD = 9.25), tenure 7.61 years
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