In: Operations Management
What are unions? Explain why employees join Unions. Explain what collective bargaining is. Lastly, what some critical issues for unions today?
Trade unions are associations of workers and are formed with the intention of protecting the workers against exploitation of the employers and also to improve the workers’ conditions. The industrial revolution in England and in other countries and the advent of the factory system of production are greatly responsible for the emergence of trade unions.
employees join Unions for the following reason:
1. Higher Wages : One of the top benefits of being a union worker is that you enjoy a better wage as compared to your non-union counterparts. Union workers are also more likely to enjoy consistent pay raises on a regular basis. With a non-union job, the employer can set the wage without any formal bargaining process or input from the employees.
2. Support – One other key benefit of working as a union employee is that a union representative will work with you should you have a personal issue with the employer.
3. A voice – Good workplace relations can also be a major positive: the important work of Freeman and Medoff (1984) emphasizes the importance to the management of a collective union voice which facilitates joint labour/management discussion of workplace problems.
4. Equality and Fairness – Public sector union wage increases have more or less matched private sector increases over the past decade. They have barely even matched inflation – despite economic growth.
5. Job Security – Unionized workplaces also tend to have far lower worker turnover, giving an employer the benefit of experienced workers and an incentive to invest in the skills of employees knowing that they are unlikely to leave the firm.
6.Stronger Economy – IMF released a report stating that the decline in unionization is directly correctly to the growing margin of income inequality.
7. Better Training – Unions offer greater opportunities for training advancement to its’ members guaranteeing that they will be safer on the site, avoiding more injuries and potential safety hazards.
8. Health and Safety – Unionized members are held to the highest standard when it comes to health and safety. Ensuring that all members are protected and given the right equipment and resources to avoid possible injuries.
9. Rewards and Benefits – Unions often times have access to greater loyalty reward programs, scholarships, and benefits for members and their families.
Collective Bargaining – Collective bargaining occurs when a group of people, such as the workforce at a company, bands together to increase its negotiating power.
For instance, a single worker might feel that a certain new safety measure should be implemented in his factory, but he might have limited power to get the company to install the new measure.
If the entire workforce is made aware of the need for the new measure and bands together to pressure the company to install it, there is a much greater chance that the company will comply.
Labor unions band workers together, allowing the voices of individual workers to be heard and possibly made into a goal of the union. Unionized workers typically elect representatives to bring concerns to the union’s attention. Collective Bargaining makes sure changes are negotiated rather than imposed.
Issues of Union is in image below: