Unions have been a hot topic in the news. First we had the downfall of Hostess, which is now being liquidated after a national strike by the Bakery, Confectionery, Tobacco Workers and Grain Millers Union could not be resolved.
Then, Wal-Mart workers gathered in protest under the nonprofit Organization United for Respect at Wal-Mart (OUR Wal-Mart) and the United Food & Commercial Workers International Union. OUR Wal-Mart protested in approximately 1,000 Wal-Mart stores and online nationwide against new store hours on Thanksgiving, among other grievances.
With all this union talk, I realized I don’t know much about how labor unions work or their impact on businesses and the workforce. I’ve always heard that unions destroy businesses and have the potential to make you less employable in the job market. But is that true?
I doubt that’s the entire story. So to educate ourselves, let’s take a look at the basics of unions and their potential impact on a career path.
What functions do unions perform?
Although very complex, in its essence, labor unions organize and represent the rights of employees, such as fair pay standards, job benefits, and safety issues in various fields or industries. There are approximately 15.4 million union workers in the U.S. Labor unions perform a few general functions across the board:
- Strikes are used as a negotiation tool during a collective bargaining situation.
- Collective bargaining entails the employment details negotiated between employees and the employer.
- Shape legislation using political parties and interest groups to help set standards for employee rights, benefits, medical leave, and other issues.
What are the benefits of unionizing?
Trends show that unions are effective in increasing the wages and benefits in a business or organization. In fact, the median weekly wages in 2009 was $901 for workers represented by unions, versus $710 for all workers who were not. Unions also offer more job protection, protecting workers from being fired without cause and offering layoff negotiations. Another great benefit of labor unions is that they have the opportunity to partner with willing businesses. In this way, the union and the business has the same interest at mind: staying open for business and keeping people employed.
What are the disadvantages of unionizing?
While unions can increase wages and benefits for employees, they can also force businesses without appropriate funds and budgets to lose money or even close due to high wage demands. Unions are also linked to higher production costs and limited flexibility within the workforce. Businesses that are affected by unions are generally subject to more lawsuits or arbitrations and less control over human resources due to union rules.
How do I know if my field has unions?
If you’re not sure if your job industry has memberships available in labor unions, try going to Unions.org to see the labor unions listed in your state. But the best advice, as always, is to do your research before accepting a job. Discover if a business or organization has any labor agreements, the history of these agreements, and if you’re job is eligible for membership.
What advice do you have for people considering accepting a union job?
