Trade Unions
Introduction
Trade union is group of workers that organized. The main goal of it is to protect and have advanced the interest of its members. Often it negotiates agreements, it negotiates on the employers about labour contracts which include the wages, complaint procedures, work rules, rules and governing hiring, firing and promotion of workers, workplace safety and policies and benefits. Agreements with employers on pay and conditions, sickness benefits and education facilities, provide legal and financial advice to its members. The union usually claim a right of exclusively. They have the authority to know its member who are with them or not, in which they have the right to mandate on its members only and not to others. In addition to that, with regards to the employer the union contract is exclusive, an employer is generally not permitted to find out the services of another. The effects to productivity we have advantages, it supports the union management efficiency, it encourages cooperation, improving communications by collective voice. On disadvantages sides we have, no techniques, no organizational change, it is also wrong working rules and overstaffing, demarcation-maintain demand for labour.
Discuss. Marking Scheme Trade unions in the workplace can only have a negative impact on productivity.
Empirical evidence is required ultimately to assess the relative importance of the monopoly and collective-voice faces of unionism. On the other hand, at the onset, it is worth noting two points at the outset. Then the effects of unions may differ substantially upon productivity and other aspects of performance across industries, time, and countries. Both the collective-voice and monopoly activities of unions hardly surprising given that depend crucially on the labour relations and economic environment in which management and labour operate. Second, in which performance between union and non-union firms or sectors, typically the union effects are measured by differences. As long as resources are free to move across sectors, such differences doesn’t measure the effects of unions on aggregate or economic-wide economic performance. Like union companies in the US that have performed poorly relative to non-union companies. Between sectors, poor union performance has led to a shift of production, to the extend that output and resources can shift and employment away from unionized industries, firms, and, and plants and into the non-union sector. Performance have been relatively minor, overall effects on economy-wide. In private sector unionism, most visible has been the rather precipitous. Concerning on collective bargaining’s impact on productivity, econometric investigations have yielded new evidence concerning for workers of a given quality working with the same amount of capital.
In particular, manufacturing and construction, these findings indicate that in many sectors unionized work places are on average more productive than non-union ones. It is not an immutable constant on its positive effect. Productivity has not been carefully delineated, though routes by which unions affect, but they appear to differ from sector to sector. The key in manufacturing is to have reduction on turnover and improved management. Supervision seems to be primary in construction, and more rationalized hiring, better trained workers. Differential in union and non-union productivity is likely to be positive. Capital intensity under unionism is on the average not large enough to offset the greater compensation. Thus, it may appear go hand in hand under collective bargaining the higher productivity and lower profitability. A crucial question becomes the source from which union wage gains derive, if there is no offsetting productivity effect. Union rent – seeking might be relatively benign were it entirely a tax on monopoly profits. Does unionism reduces productivity? Well, the performance of the worker is monitor greatly and production standards are more stringent. Its labour is lower on turnover costs. Workers are more skilled and experienced. Channels of labour were new and better and management communication. Practices and rational personnel policies, and systematic. To improve efficiency, have cost pressures.
Discuss. There should be a balanced analysis of the pros and cons of unionization on productivity which includes detailed discussion of the thesis and a critique of the problems related to productivity measurement owing to the multiplicity of factors that might impact on it.
Economic performance on the impact of unions, however which public policy should facilitate bears heavily on the degree , organizing and bargaining power. In recent years, there has been extensive study particularly in the United States, of the relationship of unionization to productivity, profitability, investment, and employment growth. Increase in compensation significantly in unions for their members but doesn’t increase productivity sufficiently to offset the cost increases from higher compensation. Therefore, it is associated with profitability which is lower, decrease investment in physical capital and research and development. In addition to that employments with lower rate, sales growth. Weak economic performance in union firms relative to non-union firms and sectors implies a continuing decline in membership, as long as unionized companies operate in a competitive environment, in the absence of changes in labour law favourable to union organizing. Unions on economic performance undermine, yet the deleterious effects rather than buttress the case for governmental regulations and policies that promote union strength. If not all, most unions have monopoly power, by which they can use to raise wages above competitive levels ( 1984, ). Bargaining power which is inequality between employees who do not possess full freedom of association or actual liberty of contract and employers in which they are organized in the cooperate or other forms of ownership association. A burden is substantially and affects the flow of commerce, and tends to aggravate recurrent business depressions by the wage rates is depressing. Purchasing power of wage earners in industry and by preventing the stabilization of competitive wage rates. Distorting labour and product market outcome is viewed in union by increasing wages above competitive levels. for them faces of unions refer as collective voice/institutional response. It emphasize on the potential role that collective bargaining is in improving the functioning of internal labour markets. Unions may more effectively if it is legally protected that allow workers to express their preferences and exercises. It may be more effective if it is union bargaining than individual bargaining in overcoming workplace public goods problems, thus problems in attendant free-rider.
The exercise of the workers’ right to free speech, acquire information, as the workers’ agent, the union facilitates it. Monitor the employer’s behaviour, and formalize the workplace governance structure in a way average workers represent better, as opposed to workers who are being more skilled. Therefore, on contract from the outside the plant more mobile or hired. To improve job compensation and working conditions, unionizing is very effective and can be very effective way. But it can be lengthy and bureaucratic process. Considering the pros and cons in unionization is important before committing it. Advantages of unions which include on the wages are higher.
The median wages of union members were higher than non-union workers according to the report on union members, bureau of labor statistics 2006 found that nationally. Benefit packages for the employer, in which “Better health care: 81% of union workers have job related health coverage, according to change to win report, while non-union workers do have only 50%. Unlike with non-union families, union families pay forty-three percent less for family coverage. Job protection, with this in addition to wages, workers can gain better benefits, retirement or pension benefits, protected rehire rights through collective bargaining agreements. Job protections, such as seniority rights, unions also bargain on it. Discrimination and require “just cause” for terminations, this may include on the protection of agreement. Next we have union sponsored benefits, in which some were not offered by an employer, a group of benefit package, the union may organize to allow members to obtain insurance coverage or other services at fair rates. Working conditions and safety, unsafe or illegal working conditions, union may protect the workers. It can support the workers in filling the complaints, or in a group of workers it may give voice to complaints. Quality and productivity, several studies that made in AFL-CIO summarizes that indicates the unions are associated with higher productivity, better skill training, and lower turnover. Employment assistance and job security, in which job protection may include in collective bargaining that require there to be a just cause for termination.
Unions serve as a hiring hall, in some industries connecting unemployed workers with available jobs. Union’s leaders who are unemployed, unions may offer assistance due to union activities. And last advantages is legal presentation, in certain kinds of jobs related incidents, union may provide representation for members. And then we have disadvantages in unionization, with all the benefits and advantages that offer, but it continues to decline on its membership. Some of the workers for them unionization they don’t feel it desirable and needed. Here are disadvantages in unionization, we have expense, speaking with that, having with union is expensive, members in the union should make approve on the amount of dues. As budget, detailing expected expenses, the union should publish on that, as the basis for the dues. Then restrictions in job, with limits on the tasks they can do, it can be frustrated on unionized employees. You will not be able to do even a simple task in the protected job, if the contract limits certain jobs to a union member for a specific trade. The delay of waiting for the right person is aggravating if you are a just do it personality. Other disadvantage we have, competitive disadvantage, by which one company is unionized, thus the other company is not. For the unionized company to compete it may make harder with them, in which the increased labor cost of the unionized is one factor. It will eventually lead to a problem for the business if compensation exceeds the productivity or economic benefit of the work performed. Then improper leadership, in union leadership, some individuals position have taken advantage of the financial trust of union members. Racketeering was a problem in several unions, particularly in the 1950’s that were infiltrated by organized crime. Federal Office of Labor Management Standards today is requiring annual reports from each registered union, and with federal laws it ensures compliance. Union leaders offers some assurance on do not use funds or their authority improperly. Viewed as self serving, by which some claim that, at the expense of less senior, more productive workers in that union seniority protect unproductive workers. Conclusion
Therefore I conclude that the, as with the impact on the productivity with the marking scheme trade union, the question is, does unionism reduces productivity? Well, the performance of the worker is monitor greatly and production standards are more stringent. Its labour is lower on turnover costs. Workers are more skilled and experienced. Channels of labour were new and better and management communication. Practices and rational personnel policies, and systematic. To improve efficiency, have cost pressures. Is it more productive in unionized workplaces? One of the major bones of contention among analyst of unionism is the impact of trade on productivity unionism. Wrote in 1970, that according to , economists have been debated the effects of combinations of workmen, for more than a century and a half, and or on the efficiency of business enterprises, collective bargaining.
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