Question

Please go to the internet and find an article that discusses labor union formation and activity and summarize key points in the Discussions area.

In your initial response to the topic please answer all of the following questions:

1. Do unions engage in ethical behavior? Please explain.
2. Historically, what factors precipitated the formation of unions? Please explain.
3. Do you expect union activity to increase or decrease globally? Please explain.

Answer 1

Article link: https://economictimes.indiatimes.com/jobs/after-a-year-mahindra-nashik-union-reach-wage-settlement/articleshow/22205411.cms

Theory: Mahindra is a leading 4 wheeler manufacturer in India. Its plant in Nashik (Maharashtra) has a labor union.

This article explains how the Nashik-Mahindra plant workers union of a city Nashik in Maharashtra (India) negotiated successfully with Mahindra company management for a wage hike.

Management also agreed to this wage hike proposal. It is obvious that there must have been multiple rounds of negotiations before reaching to consensus.

1. Do unions engage in ethical behavior? Please explain.

It is observed that labor unions generally are not ethical. Their negotiation power depends on the business cycles. However, trade unions may not consider business cycles and may demand very high wage hike and this may result in closing the firm completely making people jobless. Example- Cotton mills in Mumbai part of India.

1. Historically, what factors precipitated the formation of unions? Please explain.

The factors that lead to formation of trade union are:

a. To have a formal organization to safeguard employee rights.

b. To reduce job insecurity.

c. legal provisions to make labor unions.

d. Industrial activities in the past may lead to formation of labor union.

1. Do you expect union activity to increase or decrease globally? Please explain.

I expect union activities to go down as products are having short life cycles. There is a danger of robots replacing labor intensive work. Firms can now move to low cost places in a relatively lesser time. Technology is changing rapidly.