Question

A, B, C. Demands for wage increases and strikes are not the only effects of a union on a private employer. A, B. Answering as parts A and B, separately identify and explain two other harmful effects that a union can have on a private employer.   

D. There are unions that claim that hiring union is good for the employer. Sometimes they are right. Identify and explain the situation where an employer is better off by hiring only union labor. (Note: Assume that all parties are honest and law abiding.)

Answer 1

Two other harmful affects Unions have on private employers are below-

• They make rewarding deserving employees difficult. Since Unions put a lot of emphasis on seniority, it becomes tougher to promote deserving but young employees over undeserving but old employees.
• Higher chances of litigation- Backed by unions, workers are more susceptible to litigate over many things since they believe the union will back them.

Unions do make it easier to deal with workers many a times by providing a single point of contact for discussions, resolutions and implementations. If the workers have any issue that needs to be resolved or anything that needs to be discussed, then it becomes much easier to deal with one point of contact. Unions, once agreed, also make sure that the agreement will be implemented and followed. If there is no union, the management will have to deal with many different stakeholders and the whole process will be much more harder and complicated.