The evolvement of technological advances over the last 20 some years has caused many different things to happen in our country, including Corporate America’s shift from a production industry to that of service. As a result, many people tend to believe that the need for labor unions is a thing of the past and is no longer necessary in today’s business industry.
However while a great deal of change has come fourth with the passing of time, as the adage goes, “something’s never change.” For example, most business organizations and companies still feel that their employees should be satisfied with receiving their pay at the end of each week and many employees are still after more than just a paycheck at the end of the day. This is just one of the causes that initially brought on the formation of a labor organization and also explains why labor unions are still in existence to this very day.
Advantages & Disadvantages of Labor Unions
For those who are considering the prospect of joining a labor organization or labor union, it may help to know some of the advantages and disadvantages that are usually involved. Most labor unions use a labor contract, which essentially is a legally binding agreement between employees and management, covering the areas of wages/salary, benefits and working conditions.
There are several benefits that workers can retain from labor contracts, such as better healthcare, increased and timely wages, pleasant working environment and more. Labor contracts are also beneficial for business organizations, as they allow them to work efficiently with their staff without having to deal with any unnecessary “drama” issues that most office environments are known for.
While the advantages to both employees and business organizations can prove to be extremely beneficial, there have also been certain cases where being part of a labor union has caused things to not work out quite as smoothly. Therefore, in some instances labor contracts can create problems for workers instead of fix them.
This is mainly due to the fact that labor union negotiators can sometimes fail to reach an agreement with the management department of various businesses organizations. Unfortunately, this failure puts both the workers and company at a disadvantage because the employees are left jobless and the business organizations are also left at a loss as they cannot run day-to-day operations without a full-time staff on hand. While failed agreements are not always an issue with labor unions, it’s important to keep in mind that there is always a chance they could be.
The Workings of Collective Bargaining
When labor unions participate in negotiations of the various conditions of employment between an employer and a group of employees, they are engaging in a term known as collective bargaining. In addition to federal state and statutory laws, collective bargaining is also governed by administrative agency regulations and judicial decisions. Most collective bargaining procedures also result in a collective agreement between the business organizations and employees.
While many of us still associate Labor Day with end of summer activities and shopping ventures, you may find it interesting to know that labor unions were the first to celebrate the Labor Day tradition here in the U.S..