In: Economics
In 3-5 paragraphs describe the disadvantages of labor unions in American business and manufacturing?
Labor unions are the associations formed by workers to better negotiate their interests with the owners or the managers of the company. Unions can be those of professional nature as well. Example, doctors' union, teachers' union. But here we are going to focus on workers' union only.
These disdvantages pertain only to too much strengthening of labour unions.
1) Labor unions make it difficult to improve efficiency. Workers resist new training, new technology which can improve plant profits, and their wages as well because they perceive it to be too much work.
2) Labor unions scuttle attempts to hire non-union workers from joining the organization. They either pressurise such workers to join them, or create obstructions in their working. Skilled, moitivated, task-oriented workers are then dissuaded from joining the organization heavily under labor union controls.
3) It has come under observation that labor unions in developed countries have posited themselves as staunchly anti-immigration. Though the immigration policies are geared towards skilled workers, labor unions oppose them as they ignorantly believe that the foreign workers would displace them as well.