Question

1. Name the three types of labor unions and name several industries in which those union types dominated that industry's labor market.
2. Briefly describe the collective bargaining process and comparatively, binding arbitration.
3. State reasons for the dwindling segment of labor market supplied by unions

Answer 1

A labor unions are democratic organization represents workers in particular industries, trades or sectors that decide to bargain collectively about their terms and conditions of employment, negotiate improved wages, benefits and working conditions. Basically there are three types of labor unions: Craft unions, industrial unions, Public sector unions.
Craft unions: These unions represent organized workers who have been trained to do a specific type of work. Craft unions were hired to do specific types of work collectively bargained over prices for the completion of a job, not wages or benefits. The examples of craft unions are bakers, blacksmiths, carpentry, painting; apprentices learned their trades from masters which regulated production by setting prices and limiting wages and employment. The craft union uses their strategy for creating, standardizing, and changing workplace relationships through collective bargaining.
Industrial Unions: Industrial unions are made up of workers from different firms developed out of the factory system. Industrial unions have a number of strengths as industrial unions bring workers together regardless of their employer and represent entire sectors of the economy. Industrial unions are very good at shaping and changing work-employment relationships so workers can move between employers with ease. Industrial unions represent workers in industrial sectors, such as transportation or food service, the Organization of Chemical and Atomic Workers, Mines etc.
Public Sector Unions: Public service unions are the members work in the public sector. These unions aim to harmonize the laws regulating the relationship between public sector workers and their employer (the state). Public sector labor laws differ significantly from private sector labor laws. Public sector unions dominates following industries, The National Education Association, public school employees, and the American Federation of State, County and Municipal Employees, better known as AFSCME, which represents employees of state, county and city governments.

Collective bargaining is a process of negotiating between management and workers for determining mutually agreed terms and conditions of work at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers, rights for workers which protect the interest of both workers and the management. The collective bargaining process follows five steps followed by both the employee and the employer to reach an amicable solution. These 5 steps are Preparation, discuss, propose, bargain and settlement. In preparation step both the representatives of each party prepares the negotiations to be carried out during the meeting. Management must be preparing well with the statistical figures to justify its stand, the union should gather adequate information regarding the financial position of the industries and prepare a detailed report on the demand, issues they face. In 2nd step both the parties decide the ground rules which will guide the negotiations and the prime negotiator is from the management team who will lead the discussion. In 3rd step the chief negotiator begins the conversation with an opening statement, and then both the parties put forth their initial demands. In 4th step the negotiation begins and can go for days until a final agreement is reached. Settlement is the last stage in this process where both the parties agree on a common solution to the problem discussed so far. A mutual agreement is prepared between the union and management which is to be signed by each party. Conflict resolution is the main focus in the collective bargaining process. If a union and management cannot agree with each other , either side could send the dispute into binding arbitration means there is no real opportunity to correct what each party may feel is an erroneous arbitration decision. If negotiation of the contract approaches a year in duration without an agreement, workers may file a petition to remove the union. The current law allows workers to remove a union if negotiations drag on too long and workers can vote down a contract if they are not satisfied with its terms.
The reasons for the dwindling segment of labor market are income inequality, union membership and activities fell sharply in the face of economic prosperity, a lack of leadership within the union, anti-union sentiments from both industry management and the government. Another reason is an increase in service jobs accompanied by a decrease in manufacturing jobs. Global competition and deregulation also affects dwindling segment of labor market. The current generation of workers has little knowledge of, and do not particularly care about, unions.