Question

We are reviewing Labor Unions and I beed assistance with the below:

Describe the advantages and disadvantages of unions from the perspective of employees and employers?

What factors have affected labor unions and the employee-employer relationship?

Answer 1

A Labor Union or Trade Union is an association formed by the workers. This association has legal personhood or is a recognized legal unit, and may also be called a bargaining unit. The association acts as a legal representative and bargaining agent for the workers who make a part of the organization (are its members) in matters of rights or law, which may arise due to collective agreement or administration. In most cases, labor unions have the head offices, formal organization setups, as well as the legal teams, along with a regular fee for the members. The Royal Commission on Trade Unions (1867) confirmed that these organizations are advantageous for employees and employers and trade unions were first legalized in England in 1872. The first labor union movement in the USA was the Knights of Labour that started around 1869. American Federation of Labour (AFL) was the first labor union in the USA and was established in 1886.

Advantages and Disadvantages of Labour Unions for the Employers

Labour Unions may provide for a well-trained and stable workforce. Apart from the employers, the unions may also have certain training programs for the members. Well trained employees also provide for safer and better work conditions and there are lesser downtimes due to illness or work-related injuries. Employers can also negotiate the jobs and contracts easily and the cost of operations becomes more predictable.

There are also certain disadvantages of labor unions for employers. Because the union promotions and raises may be based on seniority and not performance, employee creativity may take a back seat. Employees are often required to pay the minimum wages, which may be substantially higher for the employer. Therefore, the existence of labor unions may result in an increase in business cost for employers. When the agreement cannot be reached, strikes and interruptions of workflows hinder productivity and profits. Labour unions may make it hard for the employer to fire the under or ill-performing employees.

Advantages and Disadvantages of Labour Unions for the Employees

Labor unions remove favoritism and bias and employees can expect to achieve more from genuine and sincere work. Unions also establish a clear chain of command and help in quick resolution of disputes. Labor unions help the employees attain retirement benefits as well. They are responsible for negotiating the collective bargaining agreement, which includes the pension program and makes it mandatory for the employer to carry out the responsibilities necessary for matching and funding the pension monetary amount. The union gives the worker’s voice power to be heard by the management and brings in more advocacy opportunities. Unions may also promote minimum wages and improve the standard of living for the employees.

Certain cons or disadvantages are also there. Workers who are part of labor unions lose their individuality and their voice is part of the same pot. Hence they may not express differing opinions. Unions may hire on the basis of seniority and collective bargaining may not provide the same protection and privileges to individuals with lesser experience. In some cases, it is mandatory for an employee to be a part of the labor union and pay a percentage of what he/she earns to the union (as a membership fee). Workers may also be pitted against other workers or against their bosses because of the roles and responsibilities they have to play while being part of a labor union.

Factors Affecting Labor Unions and Employee-Employer Relationship

A contract binding to both the parties is the foundation of the relationship between employer and employee. The collective bargaining agreement may affect this relationship to a great degree. This contract takes place between the management and Labour union and covers the various terms of employment for an employee who is part of a labor union. When this contract (oral or written) does not specifies the time period for employment, the employee or the employer can end it at will at any time. However this rule and contract term may also be affected by other conditions and laws like the Fair Labour Standards Law, Civil Rights Act, and conditions including discharge against public policy or violation of law among others.

A number of factors affect the labor unions and the employee-employer relationship. The size of the labor union is an important factor and the unions with good numbers of a member may have greater power during negotiations. Labour unions exercising democratic principles, possessing unity, and carrying out their responsibilities may also bring in more improvements to the employee and work conditions. The legal system and the recognition of the union as a legitimate entity are important for the union to function properly and to bring in the collective bargaining benefits to the employees. Employers will also refrain from indulging into negotiations with an entity that is not secured on legal grounds. Strength to a labor union may also come from the resources including the property it possesses.

Industrial, economic and social changes affect the labor unions and employee-employer relationship as well. For instance, there has been a general shift from the manufacturing industry to the service industry. More and more youth, women and part-time temporary workers are joining workforces. Because of these changes, the strength, power, and density of labor unions are also decreasing in the USA. That is why the labor unions have lost a significant number of members in the past decades and their power has also decreased considerably.