A Trade Union could be a membership-based organization and its membership should be created up primarily of staff. The main aim of an organization is to defend and advance the interests of its members in work. Trade unions, discuss major changes to the work, negotiate agreements with staff on pay and conditions, discuss members' issues with employers and accompany members in disciplinary and grievance conferences on behalf of staff.
Pros
Unions provide employee protections
Trades Unions protect employees from exploitation and
help to uphold health and safety legislation. In addition, trade unions provide
representation to workers facing legal action or unfair dismissal. In most of The United States, non-union workers are at-will employees. In short, employers can
fire employees for virtually any reason. Of course, there are limitations in
place such as discrimination. For union members, it is different. There must be just caused. In addition, it is not a simple firing. In most instances, this
type of decision must go through arbitration or a grievance procedure.
Reduce inequality
Figure 1: Advantages and Disadvantages of Trade Union ( (source: Economics essays)
From the late 1890s to the 1980s, the UK saw a growth
in trade union membership. This was also a period of falling inequality and a
reduction in relative poverty. Since trade union membership peaked in the early 1980s, this trend of reduced inequality has been reversed and inequality has
increased.
Unions are economic trendsetters
Before the emergence of trade unions, weekends and
provisions for employees did not really exist. Even though the U.S. The
workforce has not been 100% unionized; unions do affect trends that benefit all
employees. Other examples include the minimum wage, overtime rules, etc.
Cons
Unions require dues and fees that some workers do not want to pay
There are two types of workplaces with trade unions,
open and closed. Open shops do not need employees to pay dues or fees to the
union. However, in a closed Shop, employees have to be union members in order
to apply for a job. Some will allow candidates to apply for the job as a
non-unionized candidate, but if the candidate is hired, the non-member must
become a member. Some allow employees to work as non-members, but those workers
are required to pay agency fees, which contribute to the work the union is
doing. In the United States, such trade unions' deduction rates are 1.5%-2.5%
of their pay.
Union Actions caused to Wage-inflation
Figure 2: Prices and incomes policy ( (source: Economics help)
If unions become too powerful they can bargain for
higher wages above the rate of inflation. If this occurs it may contribute to
wage inflation. Powerful trades unions were a significant cause of the UK's
inflation rate of 25% in 1975.
Unions make it harder to promote and terminate
workers.
Unions mainly focused on the seniority of the worker. This often translates into the lack of advancement for new and high-performing employees to promote. As well as it is difficult to demote those employees who are not performing at high levels.
Every organization’s HR Department must aware of the changing face of unions. At one point in time, unions were less diversified and negatively perceived. That is no longer the case. Union membership is looking less white male and more inclusive. And though the numbers show a decline in trade unions, there are some signs resurgence is on the way.
References
HR exchange network, 2018, Pros and Cons of Labor Unions, www.hrexchangenetwork.com, Viewed 7 August 2021. <Pros and Cons of Labor Unions | HR Exchange Network>
Economics Help, 2019, Advantages and Disadvantages of
Trades Unions, https://econ.economicshelp.org, Viewed 7 August 2021.
<Economics Essays: Advantages and Disadvantages of Trades Unions
(economicshelp.org)>
Nice article Parami. well written. Trade unions are indeed proved protection to employees. When Share holders/ owners focus on business interests such as profit maximizing or increasing market share, they might forget the employee well being. As individual level employee can’t stands for rights but when there is a trade union, it’s a great strength. However in some instances trade unions get the upper hand to manipulate authorities to get things done as they want . However as you said there are both upside and down side of this .
ReplyDeleteGood article Parami, thank you for sharing.
ReplyDeleteYou have neatly listed the Pros and Cons of Trade Unions. As you have stated Trade Unions help reduce inequality and employee protection and well-being and it can even add value and support organization to achieve higher profit by uniting the workforce. On the other hand, Trade Union may try to exploit and abuse the power it has to gain personal benefits or due to the interest of some external factors. Employers and Trade Unions should have clear communications and understanding to avoid any adverse impact to both employees and organization due to clashes and disputes.
Argumentative topic. In SL there are over 2000 registered trade unions , out 60% are involved in public sector. However, studies says the total employees covered by these TUs are 10% of total work force. It is very argumentative that the fair benefits of TUs could be distributive with this participation ? . Moreover, Public sector TUs are bias to the political parties and aligned with the political agendas than employee welfare. Hence it is proved that re-assessment is needed for the TU relations in SL.
ReplyDeleteWell-written article Parami.
ReplyDeleteThrough your article, you have nicely written about the pros and cons of trade union involvement.During negotiations and when implementing the terms of a final agreement, labor unions and human resources collaborate. Labor unions generally represent employees, while HR represents the company, but this does not necessarily mean that they are at odds, any more than employees and employers are. Instead, each is working to achieve the best possible outcome for the people or entities that they represent.
I have published a blog regarding trade union. so invited you to visit and gain more knowledge about trade unions and employee rights
https://bocumesh.blogspot.com/2021/07/employee-relation-in-sri-lanka.html
Important article, As you explained, the primary goal of trade unions is to maintain and improve workers’ terms and conditions, particularly workers who are members of the union, through collective bargaining with employers. Whether unions are successful depends, in large part, on
ReplyDeletetheir bargaining strength – which is based on their ability to restrict the supply of
labor to the employer – and the ability of employers to concede above-market
wages, Thank You for sharing.
Nice Article Parami,you clearly explained what are the pros and cons of the trade union in this article,In my opinion trade unions are need to stand up for employee rights.Thanks for sharing.
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ReplyDeleteThe world of work is changing at a very rapid pace. The decline of jobs in manufacturing,the rise of non-standard and flexible work and the persistence and growth of the informal economy, coupled with changes in employment regulations and behavior and the limitation and violation of trade union rights have caused unionization rates to fall in most countries worldwide. In todays' context trade unions face two major challenges; the digital economy and the way it transforms jobs and employment relationships as well as the social divide between workers with stable, paying jobs and workers with unstable, poorly paid. Thankyou for sharing this interesting article Parami.
ReplyDeleteUnions represent the employees of organization who stands with them for securing their rights. They negotiate with higher management on behalf of the employees regarding Wages, Health and safety standards, Promotions, Retirement & etc. Some strong unions have the upper hand of employees, therefore HRM of organizations must be vigilant on the actions of unions regarding causing unnecessary problems towards smooth functioning.
ReplyDeleteEmployee union maintain the improvement of work condition of employees/their members. The activities of trade union includes provide assistant to employee issues, collectively bargaining for better work conditions and salaries. As you discussed Parami, union are making advantages and of course disadvantages in both end of employee and organization.
ReplyDeleteGood article Parami,
ReplyDeleteTrade unions plan to foster an essence of collaboration and encourage friendly industrial relations and diffuse education and culture among their members. They take up welfare measures for improving the morale of employee and generate self-confidence among them.
Good topic parami, many examples of trade union intervention can be found around us. Employees benefit from collective bargaining by the unions on their behalf. Trade unions promote maternal / paternal rights, flexible work. They campaign against any kind of discrimination and many other things. thanks for sharing.
ReplyDeleteA labor union advocates for the rights of employees and fights for workers' rights, ensuring that all employees receive adequate benefits from the organization. What I see in our nation is that unions divide the workforce, force members to pay for a membership, affect labor-management relations, and practice discrimination.
ReplyDeleteInteresting topic Parami.Workers are joined together with trade unions to achieve goals in areas such as wages and working conditions. They negotiates contracts and conditions with employers, keeping employee satisfaction high and protecting workers from unsafe or unfair working conditions.
ReplyDeleteThe advantages of joining a trade union are contingent on one's circumstances. They can help counteract a monopsony employer's market strength if they are faced with one. If unions gain too much power and push salaries to be too high, unemployment and inflation may result. The nature of the interaction between trade unions and employers also has a role. If the union and the company have strong and productive ties, the union may be a partner in maintaining a successful business, which helps to protect employment and raise salaries.
ReplyDeleteTrade unions play an important role and are helpful in effective communication between the workers and the management. One of the key roles include being able to resolve workplace issues by being a voice for employees. An important element to be valued and practiced. The author has well explained the pros and cons of trade unions. Worth to read.
ReplyDelete