published in: Journal of Political Economy, 2004, 112 (2), 253-289
This paper provides a case study of the effect of labor relations on product quality. We
consider whether a long, contentious strike and the hiring of replacement workers at
Bridgestone/Firestone’s Decatur plant in the mid-1990s contributed to the production of
defective tires. Using several independent data sources, and looking before and after the
strike and across plants, we find that labor strife at the Decatur plant closely coincided with
lower product quality. Monthly data suggest that defects were particularly high around the
time concessions were demanded and when large numbers of replacement workers and
returning strikers worked side by side.
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