Notes
This article aims at excellent analysis of the role of unions in the economy. Therefore, it has outlined various elements, merits and demerits that are associated with unions.
In most cases, various analysts have looked at unions as monopolies in the labor market with the main objective being to increase wages for members. This makes the organization easily forego the role of enhancing productivity causing unemployment in the society.
Despite being socially relevant trade unions have brought in massive disadvantages that have been ill to the well being of the economy. For example in the US trade unions have been of massive demerits as they have discouraged productivity among employees while campaigning for high wages.
However, the monopoly face of trade unions has been challenged by scholars such as Hirschman who has defined it as the collective voice or institutional response face. This has outlined that trade unions have the role of countering social and economic challenges. In this case, the political setup of a country is extremely fundamental as it outlines the performance base for trade unions.
Based on research conducted among leaders or managers of various organizations in the United States, there is an agreement that trade unions are vital in the society. There must be respectable behavior between firms and workers as well as the government. Unionization has more merits than de-unionization. The research findings indicate that;
- Unions have exclusive monopoly wage significance without any union or nonunion wage differential.
- Campaign for increased wages change the full compensation package thus increasing compensation proportion for fringe benefits such as pensions.
- Unions aid in raising wages for both organized blue collar workers and non-organized blue collar workers.
- Employees acquire rules for determining the sensitivity of their voices.
- Unionism determines the response nature for organizations to economic swings.
- Union workplaces are governed by special rules which are not available in nonunion workplaces.
The outcomes of unions may be measured in terms of their efficiency, income distribution and social organization.
Key terms
Monopoly: the sole controller of a given market
Unionism: ability to stick together for a common goal.
Wages: forms of compensation like salaries
Efficiency: proper use of given resources to achieve a given goal.
Reflection
I found Unions as extremely critical facilities in any economy. They are of significance to the voiceless employees who may fear to air their grievances in an organization. However, it may be wise for leaders of various organizations to consider the significance of encouraging productivity among employees as they seek to pronounce their wages grievances.
