Question

What are the disadvantages of unions in American business

Answer 1

Disadvantages of unions

1. Higher wages. The wages for unionized workers are higher than non-unionized workers. This leads to higher costs of production. The benefits to unionized workers are also higher.

2. Strikes: Unionized workers can declare strikes legally. This would lead to disruption of production, higher costs and bad publicity.

3. Confrontation: The relationship between management and labor is adversarial sometimes leading to confrontation.

4. Firing of workers: It is difficult to fire workers especially senior workers. This may lead to inefficiency. The newer employees will have to be fired first.

5. Closed culture: Unions may have a closed culture leading to differences among the union members..

Minorities and women may be excluded from decision-making, creating dis-harmony among the members.

6. Union membership fees and dues may be too high, putting financial pressure on the members.