Schools of thought have different views regarding labor unions. The mainstream economics school of thought view on labor unions can be said to be negative. It takes unions as a collective with other interventions in the market such as government intervention. It perceives unions to influencing the supply of labor negatively. This is because its views competitive markets as being perfect thus unions hinder the supply of labor. Additionally, its provisions reveal that the relationship between the employees and the organizations is perfect. This means that unsatisfied employees can leave or the employer can allow the employees to go in case the satisfaction levels are low. On the other hand, its approach to labor relations is not welcoming at all. This is because it sees unions to make decisions that meet the interest of employees only and neglect other organizational factors. Hence it argues that unions are uncaring. Also, unions do not promote the bargaining power of employees rather it encourages strikes (Gans, 2016).
On a different note, the human resource management school of thought develops policies that encourage equity for all. It argues that independent unions have the right to develop objectives and strategies that would help their clients remain satisfied even if it is through strikes. However, its view towards the unions is negative since it believes that unions hinder a close relationship between employers and employees. Its approach towards labor relations supports a direct interaction between the employer and the employees in solving any issue. Therefore, it encourages the employees to take the initiative to voice their concerns in bargaining (Scott & Keates, 2001).
In my opinion, I believe that the two schools of thought discussed discourage the use of unions due to their arguments. However, unions are vital in helping the employees to solve labor relations issues. The absence of labor unions within organizations may encourage employers to mistreat employees hence should not be allowed. Unions are very important in protecting the rights of the employees and should be encouraged.
References
Gans, H. (2016). The National Economy and Mainstream Economics: A Sociologist’s Take on the Economy and Mainstream Economics. Challenge, 59(4), 361-365.
Scott, J. W., & Keates, D. (2001). Schools of thought: twenty-five years of interpretive social science. Princeton: Princeton University Press.
