Question

Is unionization a good thing or a bad thing for employees, business, the economy, society, etc.?

1. Present both sides of the argument. Use information from the text and other course documents to support your arguments (topics should include the efficiency, equity, and voice triad; the four schools of labor relations; and other information from the book and course document.)

2. Based on the two arguments above, discuss your opinion of the efficacy (effectiveness) of the labor movement and if there is a need for reform.

Answer 1

A union is generally called a' bargaining ' unit , which act as an agent and legal Representative for a unit of employees in all matters of law or right arising from or in the administration of a collective agreement. At present there are unionization in walks of life . Apart from the labour organization there are separate movements for different social section as well .In the business sector unionization is in accordance with the nature and pattern of its functioning . When we are assessing the economic zone there has been the prevalence of interested groups and classes from the very beginning of the economic activities.

Presently unions are formed for the purpose of securing better status in society .As in the case of labour unions it is for improvement in pay, benefits, better working condition and socio-political status through collective bargaining. Among the labour class itself the nature of organizations vary from firms to firm, industries to industries and like wise . All these unions have their own organizational structure and composition, including constitutions . The unions may composed of individual workers, professionals , retired government servants , government servants , students and even the unemployed .

When we are analyzing the unionization throughout the world, one thing can be more specific that there are merits and demerits in its existence ".Milton Friedman, an advocate of laissez-faire capitalism sought to show that unionization produces higher wages at the expenses of fewer jobs , and that if some industries are unionized while others are not . Wages will tent to decline in non unionized industries ". Most pivotal positive result of unionization is that of anti exploitation and attainment in the social and economic conditions of labour class . Social movement unionism , strongly associated with the labour movement of developing countries has also proved a far better result in the uplift ment of downtrodden classes of social groups wide over the world.

The most important criticism leveled against the unionization is that it reduces competitiveness of workers. Another Demerit unionization, especially in labour sectors is that it made a stumbling block on the path of economic growth due to Unnecessary agitations and chaos in the industrial sector.Unwanted intervention from the side of the entrepreneurs and business class also resulted in the stagnation and saturation of economic activities.The result of social division and the helplessness of unorganized workers is also a negative impact of Excessive unionization

In my opinion it is better to refrain the traditional system of unionism for the betterment of the socio-economic strata of our society .Instead of curtailing the work hours through agitations and strikes there should be a new agitation culture imbibed with the auspicious of labour movements.A collective co-operation between the employees and employer should also be developed for a new economic life .In short, whole those organizations formed out of the different groups should be restructured in accordance with the changing pattern of employment, business and other activities.