Trident University International

HRM522 Employment and Labor Relations

Module 1 SLP – (2022SEP05FT-1)

Edward Jones

September 18, 2022

 The Labor Union Effect

Due to the rapid growth of many industries brought on by technological advancements,

labor unions are more vital than ever to the modern working class. However, employees still

need to band together to guarantee themselves equal opportunity, respect, and promotion. Unions

are organizations of employees who have banded together voluntarily to increase their

bargaining position in collective bargaining (Liberto, 2022). While both employees and

employers are necessary to the economy's success, disputes about who should receive the biggest

financial reward are common. Disputes of this nature have generally favored capital since its

owners are often considerably wealthy and frequently more influential than individual services of

labor.

As union membership grew, organizers used a variety of strategies to advocate for their

members' financial well-being in collective bargaining. The basic method they used was to

withhold their work. Workers stopped what they were doing and organized picket lines outside

of affected businesses to draw attention to their issues and to deter others, including their

coworkers and customers, from coming to work. During a strike, businesses under severe

economic strain and are often unable to continue functioning normally. In extreme

circumstances, unions have taken over the grounds of facilities they have declared inoperable to

ensure that activities do not resume. The purpose of some of these sit-ins was to have the union

officially recognized, while others were utilized to achieve negotiation goals.

A comeback of union power follows years of decline. Workers are banding together at

businesses around the country to lobby for improved working conditions, including higher

wages, safer working conditions, and more generous benefits packages. Overall, the number of

unfair labor practice accusations filed with the NLRB rose by 14% between October 2021 and
March 2022, while the number of union membership requests submitted with the board rose by

57%. (NLRB, 2022). The pandemic has generated new ways of thinking about the relationship

between employers and workers and the need of maintaining a work-life balance. Employees

faced additional hurdles as governments and companies imposed further limitations to curb the

spread of the epidemic while demand surged for services that enable people accomplish more

from home, such e-commerce and food delivery. Sales associates were tasked with mandating

mask use and verifying immunizations. The warehouse and delivery staff were concerned that

they lacked the necessary safety equipment.

In most cases, unions have been able to increase the financial advantages their members

get through collective action. Organizations representing workers were able to negotiate higher

pay and perks by adopting a monopolistic stance. Wage gaps tend to be small in areas with high

levels of competition but low union density, whereas union wage premiums are sizable in

industries with high levels of organization (Knepper, 2020). Nonunion employees have also

benefited from unions in this regard since their salaries have increased as a result of their

employers' efforts to dissuade them from joining a union. Wages, benefits, hours, and the

working conditions are among topics that might be discussed during negotiations between labor

and management representatives. All terms of the agreement are spelt out in a legally binding

contract. Disputes can usually be resolved through a formal grievance procedure outlined in the

contract. For the benefit of its members, the union must ensure that the terms of the contract are

always adhered to. Making collective bargaining a fixed feature of American society has been a

challenge. Unions went through a lot of pain and suffering to establish the concept of discussing

collectively in the country; this is an underappreciated but crucial part of American history. The

traditional view among corporate executives was that they had the right to determine working
conditions as they saw suitable because they owned the factories. The basis of industrial

democracy is collective bargaining.

Unions were established by workers so they could negotiate with their employers on

issues such as pay, schedules, and working conditions. Unions have a significant role in shaping

how much workers are paid, the safety of their workplaces, and the quality of their lives outside

of work. Non-union workers earn lower salaries and fewer benefits than unionized labor (Strifler

& Beissinger, 2016). When it comes to employee rights, union contracts typically go above and

above what is required by law. Taking a break during the workday is not always a guaranteed

right in many places. Workers who are not part of a union have less protection from dismissal,

and in most states the law allows for "employment at will," which allows employers to remove

employees for any reason or no reason at all. Unions also lobby at the federal, state, and

municipal levels to pass policies that will benefit their members in the workplace. The result is

good for all employees. There is no better example of a reform that benefits society than the 8-

hour workday, which was gained by unions. Unions play an important role in defending the

rights of working people to participate in democratic processes and get fair compensation and

benefits in the United States. The influence of unions in the country has been weakened due to

decades of attacks on unions and a shifting economy. Worker earnings and living standards have

dropped, and income inequality across the board has widened as a result.

There has never been a time when unions were more crucial than now. The nature of

employment is shifting in today's global economy, and some companies still refuse to bargain

with labor unions, as is widely known. If anti-union tactics weren't so widespread, considerably

more employees would join unions, according to studies. When employees try to organize

unions, they are often met with misinformation, intimidation, and even termination if they show
support for the union. When employees band together, they have more influence than when they

act alone. Unions serve as employee watchdogs, making sure that their legal protections are

upheld (Bivens, et al, 2017). Many businesses have come to see the benefits of providing

workers with higher compensation and perks, in addition to the moral imperative to do the right

thing and treat employees fairly. Businesses that care about their bottom line in the long run want

to keep their talent pool full and reduce employee turnover. The rationale for this is rather

elementary: if workers have a union to speak for them, then turnover due to dissatisfaction will

be lower. In addition to the previously mentioned benefits, a well-organized workforce also

allows workers to share their expertise with one another, which in turn boosts output.

Participating in a union confers legal protections on its members that they would lack otherwise.

This provides a countervailing force to the authority that a boss typically exercises over an

employee.
 References

Bivens, J., Engdahl, L., Gould, E., Kroeger, T., McNicholas, C., Mishel, L., Mokhiber, Z.,

Shierholz, H., Wilpert, M., Wilson, V., & Zipperer, B. (2017, August 14). How Today’s

Unions Help Working People. Economic Policy Institute.

https://www.epi.org/publication/how-todays-unions-help-working-people-giving-

workers-the-power-to-improve-their-jobs-and-unrig-the-economy/

Knepper, M. (2020). From the fringe to the fore: Labor unions and employee compensation. The

Review of Economics and Statistics, 102(1), 98-112.

https://doi.org/10.1162/rest_a_00803

Liberto, D. (2022, June 1). Organized Labor. Investopedia.

https://www.investopedia.com/terms/o/organizedlabor.asp

NLRB. (2022, April 6). Union Election Petitions Increase 57% In First Half of Fiscal Year

2022. National Labor Relations Board.

https://www.nlrb.gov/news-outreach/news-story/union-election-petitions-increase-57-in-

first-half-of-fiscal-year-2022

Strifler, M., & Beissinger, T. (2016). Fairness considerations in labor union wage setting - A

theoretical analysis. Scottish Journal of Political Economy, 63(3), 303-330.

https://doi.org/10.1111/sjpe.12094