Labor unions are formed by employees to use their collective strength to improve compensation, benefits and working conditions through negotiation, to bring justice to the workplace through the provision of due process mechanisms and to represent the interests of workers in the political process. Economists have traditionally considered the unions that operate as monopolies in the labor market. Due to increase wages above competitive levels set by the market, economists argue that unions create inefficiencies that result in the loss of jobs and the greatest income inequality in the workforce. For this reason, economists see unions as undesirable interference in the functioning of the market. However, some economists argue that, in addition to its negative side monopoly, unions have a second face, positive collective voice. They further argue that, overall, the positive impact of unions is greater than the negative (Dunlop. 1990).
This discussion focuses on the role of unions and their impact on contemporary society and the labor market. The first chapter examines the historical development of U.S. unions. Next, we analyze the structure and governance of modern labor unions and membership trends. The labor relations process through which unions argue for its members is described. Finally, the chapter examines the impact of unions and evaluates the two faces of unionism.
Why unions?
Unions are formed by employees who wish to improve their pay, benefits and working conditions and to achieve greater fairness and due process in their workplace. Employees recognize that unless they have unusual or unique skills or talents, people have very little leverage with their employers and very little power to improve working conditions. However, by joining, workers are able to exert collective pressure is more likely to force an employer to make specific improvements in the workplace. The collective power can also be used for improvement through political and legislative processes (Dine, 2007).
What do the unions?
Economists generally argue that when employees are satisfied with their jobs, the only rational option available is to leave or quit their job and re-enter the labor market to seek a better situation. However, some economists reckon that employees have a second alternative. Participate in the voice is trying to convince an employer to make changes in the workplace that will deal with the dissatisfaction of employees.
Employees understand that if they engage in the behavior of voice as individuals, probably will have little success in convincing employers to make significant changes. Even if an employee threatens to quit, an employer can, in most cases, easily replace a worker. Employees also recognize that if they combine their individual voices with those of other employees in their workplace, which will be significantly more likely to convince an employer to make changes. The unions are the mechanisms used to shape to use their collective power (Chang, 1991).
Over time, employees have come to use the collective power of unions in three different ways. First, engage in collective bargaining with employers in ...