Labor unions work to help create better lives for everyone. They also look after employers’ and employees’ interests in disputes and negotiations. High levels of collaboration between the workforce and management are likely to be consistent with greater reliability of production and quality of output, which in turn would bolster the organization’s market position. The first known union was the Federal Society of Journeymen Cordwainers that formed in 1794. This is a look at the main pros and cons of trade unions in the modern economy. There are specific labor union pros and cons to look at today as society looks at their continued usefulness in society compared to the potential costs they provide. Trade unions are organizations whose purpose is to represent the interests of workers and to regulate the relationship between employers and employees. That said, unionized workers are not the only ones to benefit from this. The unions want to negotiate the best wages and benefits for their members, and employers want to have productive employees and make a profit. 1) Trade Unions are protecting the interest of it's members. The Bureau of Labor Statistics put together a direct comparison of median weekly income for union workers and non-union employees in the United states. For Employers - that would take a book to list. While an employer may feel that a union is always a damper on his business, unions do bring certain advantages to a company, as well as disadvantages. 1 Answer. Those are some advantages of trade union : 1) it's protecting the interest of it's members 2) it's build the relationship between the employee and employer 3) it's organize social, recreational and culture activities among the members The Trade Unions Act, 1926: The Trade Unions Act, 1926, legalises the formation of trade unions by allowing employees the right to form and organise unions. It extends to whole of India. Employers cannot always know about adverse conditions in the workplace and must depend on their employees to report these problems to management and make suggestions for improvement. It involved the distribution of 2,000 copies of a new leaflet on An employer’s introduction to trade unions (391Kb PDF) [2]. Trade unions are beneficial to all the stakeholders of an organisation, provided they (trade unions) have positive approach and mean business. As a senior management consultant and owner, he used his technical expertise to conduct an analysis of a company's operational, financial and business management issues. Labor unions help to create a clear chain of command. Unions often have their own programs to train employees in their trades, relieving employers from the cost of training inexperienced workers. The relationship between Employer and employee or trade unions is called Industrial Relation. Even in such cases as employee theft, the only choice for an employer may be to move the guilty employee to another position. It is easier to find solutions for disputes or complaints in the workplace. These pros and cons of labor unions must evolve as the modern workplace changes to meet the demands of the modern age. Sometimes the strength of a trade union is synonymous with the strength of its leadership. While unions exist to protect employees, they also present several benefits for employers. Trade union imparts self-confidence to the workers and they feel that they are an important part of the organization. Unions often have their own programs to train employees in their trades, relieving employers from the cost of training inexperienced workers. Ask Question + 100. Labor unions are organizations in which employees bond together to create a collective voice for negotiations with employers… Some unions base that experience from the time of hire, while others look at the specific time spent at the worker’s current position. The only restriction is that these restraints do not occur within the context of the “business” the labor union created. One form of employee representation is trade unions. It usually encompasses negotiations on number of hours worked, health and safety, salaries and grievances, among others. Pro 3: Unions are economic trend setters. He graduated from Georgia Tech with a Bachelor of Mechanical Engineering and received an MBA from Columbia University. The main purpose of unions being developed is to provide justice and the rights of the employee. The structure of a labor union makes it possible for like-minded people to group together and speak with one louder voice about the issues they encounter while earning a paycheck. Since union contracts specify exact wages and raises for each position, the employer has no way to reward exceptional employee performance. That can eventually lead to the downfall of a company if younger workers are tech savvy and the older workers are not. Labor unions help workers to bring home a better paycheck. 2. 4. Many people, especially employers, have negative perceptions of trade unions. If an employee is the hardest working, most experienced, and most productive person on their team, the structure of most collective bargaining agreements require that the individual be laid off first if they have the least experience. Because of these organizations, we now have rules in place that prevent child labor. The report begins by explaining what trade unions are, why workers join trade unions and the benefits of trade unions to employers, employees and the society. Harmonious relationship is necessary for both employers and employees to safeguard the interests of the both the parties of the production. Advantage: Stable Workforce Employers with unionized workers have the assurance of a stable and well-trained workforce. For Employees - union dues. Great Benefits Health and retirement benefits are a big concern for all working people. The main purpose of unions being developed is to provide justice and the rights of the employee. Some labor unions have operated continuously since the 1700s. These plans encourage employees to do a better job and reap the benefits. Over 90% of unionized workers were entitled to medical benefits, while about 70% of non-union workers were entitled to the same benefit. Employer benefits. Employees can join a … Go with the flow. He gets nothing for doing better. When promotions are based on the length of time you have served in a company, then there is a reduction in the amount of bias or favoritism that is present in the environment. Through collective bargaining, unions are able to secure higher wages and better benefits. 4. If there is a unjustified disciplinary action which occurs in the workplace, then a union representative will help the employee affected maintain their position. Labor unions and employers have always been sparring partners with both mutual and opposing interests. This makes it much easier for the employer to control costs, develop product pricing strategies, plan for expansion and invest in new product development. This report is based on Trade Unions and Collective Bargaining. 1. Many employers without a unionized workforce have incentive plans for employees who perform above normal expectations. Advantages of Labor Unions. The issue here comes back to seniority once again. If the company management treats their employees in the right way, then there will be no need for any unions. Labor unions provide an outlet for advocacy. Increased Wages Negotiating better pay for their members is one of the main goals of labor unions. Labor unions often offer benefits to ummarried partners. The benefits of working with a recognised trade union Employers around the world understand that working with a recognised trade union can bring many benefits to their company. Harmonious relationship is necessary for both employers and employees to safeguard the interests of the both the parties of the production. There is a myth percolating about labor unions throughout the United States that the protect workers from being fired. Thus, employment relation is one of the most significant areas that need to be investe… Without feedback from employees, management is often not even aware of problems in the workplace and is, therefore, unable to find solutions. Certain states in the U.S. do allow you to redirect fees or dues sent to specific purposes toward something that you support. To employers, trade unions enable simpler and effective negotiation processes, early identification and resolution of labour-related … You do gain the power of unification through this process, but it comes at the cost of your individuality. However, recognising and working closely with a trade union has a number of advantages. 82% of union workers have their health insurance premiums paid by the employer for their entire family, compared to just 66% in a non-union environment. 1. It is very important to understand the implications of all the aspects of employment relations. There are fewer disputes from hierarchy issues because there is always clarity about who is in charge at any given time. Employers also benefit from their membership in a union. What these organizations provide is an opportunity for employees to go through the due process that is available to them during a period of disciplinary action. The term, trade union has been defined variously by different authors. A trade union is an organisation whose purpose it is to ensure fair labour practices and to watch over the rights and needs of employees in a company. Advantages of Trades Unions 1. Are they needed still today? On the one hand, union membership enhances the capacity of employees to challenge employer actions, challenges the control of the human resource component in business, and often engenders increases in costs, workload and adverse economic effects attendant to labour unrest. 7. Labor unions give individual workers the power of the group voice. Although trade unions look after the interests of their members, they also recognize the advantages of working in partnership with employers. Some workers can get involved at the negotiating table. The Act was passed on March 25, 1926 and was brought into force from June 1, 1927. Contracts with labor unions can result in substantially higher wages and benefits. In this regard it will help to look for a trade union that is adapted to your company’s culture, values and that in which they believe. Workers who are employed in a unionized environment are the most likely to report that their manager or supervisor treats them like a direct report instead of a “friend.” This structure makes it possible for workers to understand what their role in the company is with greater clarity. 8. Trade unions. There are taxation and anti-trust laws which apply to corporations in the United States that are not always enforced with a labor union. Labor unions do not stop workers from being fired. Helps To Boost Productivity 4. Labor unions must have skilled negotiators representing the labor force. However, it is important that employers and trade unions build good relationships. James Woodruff has been a management consultant to more than 1,000 small businesses. Some view that there are only associations of employees or persons working in the industry and wage earners engaged in one or more professions, undertaking or while others view that these also include employers … Labor unions created contracted wages which are almost always higher than non-union wages. Labor unions often use seniority as the primary emphasis of hiring. In return, employers have fewer days lost because of work-related injuries or illnesses. Since every significant decision is also based on a majority perspective, there is a lot of pressure placed on people to conform – or find themselves on the outside of decisions. Trade union is “an organization of workers that aims to protect and advance the interests of its members” (BIS, 2009). It is a mentality which often reduces the amount of collaboration that occurs between managers and workers, eventually limiting the creativity and innovation that comes from each team. Unions will advocate in government to have legislation passed that benefits their representatives. When an individual employee encounters an issue in their workplace environment, no one might listen to them because their single voice gets drowned out in the crowd of other voices that are clamoring for attention. For employees, being unionized offers several advantages. If a decision comes down to laying off the most senior worker or the most productive employee, it is always going to be the latter with a labor union. 15 Advantages and Disadvantages of Internet Censorship, 17 Key Advantages and Disadvantages of Minimum Wage for Workers, 301 Great Pyrenees Dog Names for a Female or Male Puppy, 500 Cutest Yorkie Names for a Girl or Boy Puppy Dog, Golden Pyrenees Guide: 26 Facts About the Great Pyrenees Golden Retriever Mix, German Shepherd Great Pyrenees Mix Guide: 27 Things to Know About the Germanees, German Shepherd Akita Corgi Mix: 26 Things Every Owner Should Know, Chihuahua German Shepherd Mix Guide: 25 Things to Know About a Chihuahua Shepherd, Alaskan Shepherd Guide: 29 Things Every Owner Should Know, Blue Heeler German Shepherd Mix: 26 Things Every Owner Should Know, German Shepherd Chow Mix Guide: 27 Things to Know Before Getting One, Bulldog Shih Tzu Mix Guide: 27 Things to Know About a Shitzu Bulldog. 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