In: Economics
Discuss the pros and cons of unions
Pros of unions in the workplace
1) Unions have the power to negotiate for higher wages. better working environment, extra benefits. This helps to increase safety, coverage, compensation for the working members.
2) The union has the power to determine discipline in the workplace including termination which increases job security.
3) Employers have no choice but to negotiate with unions for maintaining productivity. Union gives power to the workers through a collective voice.
Cons of union in the workplace
1) Wages and other costs can be increased the unnecessarily high level for union negotiation. It can reduce the number of new employment.
2) Union protection makes it difficult for employers to promote, terminate employers and to maintain discipline.
3) The unionized employee is bound to maintain union rule including strike which leads to loss of income for employees, loss of profit for a company.