Case Study

"Save Money. Live Better" - Wal-Mart and Unions Interpret the Slogan Differently

"Save Money. Live Better"

Learning Questions

Q No.1

What are the advantages and disadvantages to Wal-Mart in working with unions?

Answer

Advantages of Union in an Organization

There are many advantages and disadvantages to Wal-Mart working with unions. Given that Wal-Mart has been the subject of numerous lawsuits in the last decade, negative press and even community-organized efforts protesting its human resource based practices, working with unions would benefit Wal-Mart in numerous ways (Maher and Zimmerman, 2009).Moreover, it would give workers and Wal-Mart mediation and provide protection for all parties involved (Mishel and Walters, 2003). Because of this, of course, more people might shop Wal-Mart for more goods if they believed Wal-Mart was not an “evil empire.

Labor union can help to increase the employee loyalty in Wall Marts. Employee Loyalty is very important element of any organization. If employees are happy with organization and management, so they can put all efforts for improving this organization (Greenhouse, 2007, p. 1). It can see that many organizations has market leader, they have highest market share but it is surprising that these organization has strong union labor in organization. When employees feel that organization is willing to negotiate with union and trying to solve their problems so they can benefit them, they are more stick around and work with heart and soul (Mishel &Walters, 2003).Wal- Mart works with unions it would better for Human Resource practices in the matter of record. Human Resource Department can negotiate with labor at any aspect beyond by wages and salaries. It can discuss with union at many issues such as: insurance, sick leave, overtime, working hour's etc. nonemployee organizers can be barred from company property unless there is no other way to contact the workers (Mishel &Walters, 2003).On the other hand it would help to make the profits, salaries of manager and certain financial records a matter for consideration for the purpose of contracts between union and organization. It would lower the profit margins for top managements and it perhaps it would decrease the gap between salaries of managers and labor workers. It can possible in future to increase the prices in Wal-Mart stores because it would need to pay dividends to the shareholders and the need to meet their expectations. There are some reasons that Wal-Mart engaged with union (Bliss & Forden, 2010, p.1) unions may affect the economic development of these enterprises where collective agreements are binding on employers.

Disadvantages of Union in an Organization

Wal-Mart has labor union and it has to accept demands of this union. Compensation benefits for organization, working condition of employees, rights of employees are basic elements of demands of workers and Wal-mart have to negotiate at these issues and make decision with the collaboration of labor union. Increase compensation percentage of employees and there is huge disadvantage for Wal-Mart. This organization has to pay compensation and meet the demands of union. It can disrupt the revenue of this organization (Zimmerman & Maher, ...