In: Economics
1 why union activity is decreasing globally?
2 purpose of union
3 pros and cons of union
1. Global competition in traditionally unionized industries, and deregulation. The federal government has deregulated heavily unionized industries in recent years including the trucking, railroad, and airline industries. Deregulation has brought greater competition not only domestically but also from abroad in these industries
The growing number of illegal immigrant workers who, fearing deportation, are disinclined to protest against under-standard conditions of employment, much less become involved in a campaign to organize a union. The rapidly expanding contingent workforce — consisting mostly of women, temporary workers, and part-time employees — have also proved difficult to organize for the unions.
2. A labor union is an organization that acts as a middleman between its members and the company that employs them. The main purpose of trade unions is to empower workers to negotiate better working conditions and other benefits through collective bargaining
3. Pros are:
When unions work well, they make it easier for workers to handle disputes and complaints, with other workers and with management. There are formal processes in place, which makes it easier for any worker – regardless of their individual status – to raise grievances. Many unions will also subsidize legal fees for unionized employees who want to sue their employers
Cons are:
Unions tend to place considerable influence on seniority. That can be good for creating a steady career path, but it can also make advancing the hierarchy difficult for superstars as well. It can also make it difficult to demote or dismiss employees who are consistently underperforming. And because unions have their own internal structures of leadership, favoritism and cronyism can hinder progress towards a meritocracy.
Some workplaces are closed shops, meaning you have to be a member of the union to apply to work there. Others are union shops where you can apply as a non-member but, if you are hired, you must join the union. Others are agency shops where you can work as a non-union member, but you must pay agency fees to contribute to the union's work on your behalf.