Main Aspects of Employee Relations - Essay Example

EMPLOYEE RELATIONS By Name Course Instructor Institution City/State Date Table of Contents EMPLOYEE RELATIONS 1 Table of Contents 2 Abstract 3 1.0 Introduction - Wage Premium for Joining Trade Unions 3 2.0 Why People are Not Joining Trade Unions 4 2.1 Unions have become Irrelevant 4 2.2 Government offers similar provisions as that of Trade Union 5 2.3 Trade Unions have Become Political 6 2.4 Discrimination 7 2.5 Poor Public Image 8 2.6 Loss of Freedom 9 3.0 Conclusion 9 4.0 References 11 Employee Relations Abstract Trade unions can be defined as workers’ organized groups for supporting workers in the place of work, ensuring equal and fair treatment, negotiating with employers so as to improve conditions, terms and pay. Trade unions as it will be evidenced in the report offer their members with individual representation as well as advice, and scores also provide opportunities for the members, purposely for professional and personal development. The majority of trade unions are independent, and their key objective is to improve and maintain employees’ terms and conditions, especially for its members, by means of collective bargaining. The report seeks to establish if employees are offered wage premium for joining trade unions, and provides evidence why people do not want to join trade unions. 1.0 Introduction - Wage Premium for Joining Trade Unions Undoubtedly all members of trade union get wage premium. Therefore, wage premium according to Docherty and Velden (2012, p.270), connotes the level to which union member wages surpass the wages of non-union member. Trade union wage premiums has been analysed and researched extensively, particularly with regard to labour economics. As stated by Walters and Mishel (2003), trade unions influence wages, the likelihood of getting benefits, the employee productivity, as well as protections in the work environment. Averagely, as indicated by Schmitt (2008, p.7), a trade union member earns approximately 11.9 per cent more as compared to non-unionized employees. That is to say, trade unions have a significant impact on pay structures, and play a crucial role in reducing pay differentials across occupation, ethnicity, and gender. Previously, the unionized workers’ benefits were divided into collective and private. For instance, the wage premium grant, the enhanced conditions at working environment, the accessibility of appropriate channels for complaining devoid of dismissal fear or confrontation from the employer, as well as the protection from indiscriminate decisions by the employer are some of collective benefits enjoyed by unionised workers. On the other hand, a an improved education and training investment, health insurance provision, free legal advice, as well as accessibility to valuable financial loans or pension schemes are often provided as private benefits. However, non-unionised employees’ also achieve some benefits from existing human resource policy wherein all employees are covered. Contrarily, the legal advice offered freely by the trade unions, is a special right only for unionized employees. In Booth and Bryan (2001, p.1) study for both the Great Britain as well as the United States, it was established that there was a considerable wage premium for trade union members, especially for employees in the private sector. The study explicitly considered endogeneity of members through various techniques, and established there were an enormous statistical wage effects between unionised and non-unionised employees. The authors concluded that when employees join trade unions they experience significant economic gains; so, it is apparent that workers are rewarded with wage premiums for joining trade unions. 2.0 Why People are Not Joining Trade Unions 2.1 Unions have become Irrelevant Currently, employees do not need trade unions so as to secure increases in benefits and wages, since such can be provided by their employers and also from economic stability. Moreover, trade unions have been considered irrelevant because it cannot protect workers from benefit and wage reductions, layoffs, as well as unfavorable working conditions. Actually, trade unions appear to worsen things for its members. Its recent membership decline has mainly attributed to its increased membership cost. Numerous companies have fled the US, to countries with low-priced foreign labor while those remaining are struggling to maintain their competitive advantage. As a result, membership in trade unions has reduced by almost 50 per cent in the last three decades (Green, 2013). In the same period, inequality in income has increased, with gap between rich and poor continuing to grow. The irrelevancy of trade union in this case, is attributed to its inability to reduce the gap between the think trade unions have become irrelevant because of its value has been challenged by the rise of free-market. 2.2 Government offers similar provisions as that of Trade Union From working hours, overtime pay, to assured days off as well as standards and rights of employees, numerous countries have passed so as to address these issues. For this reason, government has successfully offered provisions that were traditionally offered by trade unions. So, employees do not see need to join trade union because what they need from the unions is already offered by the government. For instance, workers joined trade union in the past as a means of getting overtime premium pay and other provisions, but such ‘goodies’ are currently mandated by government statutes. Trade unions do not guarantee safety but government through polices does. This can be evidenced by the Occupation Health and Safety Act (OSHA), where all employers are held responsible for the safety code. Currently, a worker requires needs only a phone to complain to government authorities when they perceive their working condition is unsafe. Tangentially, scores of companies have managed to reduce trade union membership by offering their workers with similar benefits and wages. Although wages for unionized workers are still considerably higher, as compared to that of non-union wages, scores of employers have managed to shut out unions by offering benefits such as health insurance, pension, and vocations as well as improved compensation that are similar to that of unionized workers[ hence, eliminating the need to join trade unions. For this reason, non-unionized workers getting such comparable benefits and wages think they can make it on their own, devoid of depending on the union. 2.3 Trade Unions have Become Political As stated by Hyman amd Gumbrell-McCormick (2010, p.315), trade unions are not just actors of industrial relations: they are essentially the main players in the modern politics considering that labor market regulation is concerned with power resources. For example, in the United States, the labor movement has been viewed as a supporter of liberal causes and the Democratic Party feudatory. Moreover, a lot of money as well as manpower have been devoted by the trade union so as to support political issues that have been approved by the trade union. So, many workers who dislike politics or do not support the political party supported by the trade union prefer not joining the union. This can be evidenced by the fact that the majority of employees in the U.K, especially those in the South, are totally conservative and cannot support such causes. So, workers avoid trade unions because they fear the unions will utilize their dues to support politicians and issues that they do not support. In spite of public differences, Bully OnLine (2004) posits that the Labor Party in U.K and the trade unions are mutually dependent. In that, the Labor government is reliant on political and financial support from the trade unions so as to remain in power while trade unions, on the other hand, are dependent on the Labor government to satisfy their interests as well as need and also to keep the Tories as well as other political parties from power. In spite of reiterated petitioning, trade unions have not done anything to confront victimization at place of work (Bully OnLine, 2004). Rather, it appears that the majority of the trade unions are placing political expediency before the members’ interests. So the membership has experienced drastic decline because workers fear paying for ineffective or no support from the trade unions. 2.4 Discrimination Employees are not joining trade unions because they fear they will be discriminated by their employers for engaging in trade unions activities. In the some countries, trade unions can collectively bargain for a contract permitting a discharge of the unionised workers who have failed to pay the union fees. But still, a trade union cannot try to make an employer to victimise workers on grounds that they are unionised. However, most unionised workers are being intimidated, victimised, and discriminated by both employers and non-unionised co-workers, and this in consequence, make people fear to join to trade unions. The concern of trade unions is not just that the discriminations are occurring, but that they are taking place when the unions are experiencing a decline in membership. Scores of trade union representatives are being discriminated by their employers, and sad part is that they are not just ears and eyes of the trade unions, but also the champions anticipated to conduct the key functions of the trade union at the place of work. Similarly, important for the trade unions is that most of victimization cases overwhelmingly occurs in working environment where trade union is recognized; thus, evidencing that trade unions are battled by employers from all fronts. 2.5 Poor Public Image Basically, the highly ostracized auto bailout by the government to trade unions may in consequence have enduring effects to its members; and this explains why some workers do not join these unions. Besides that, trade unions’ public image has been corrupted by its corrupt leaders; thus, they have very low approval ratings. The workers are not happy concerning the weak financial system, and so, they are blaming the economic institutions like trade unions, government, and businesses. Similarly, in spite of the decline in general approval, the workers still value some unions; provisions such as assisting employees, but the union public image that has been soiled by corruption and political engagement is pushing potential members away. In last few years, numerous trade union leaders have been found guilty of corruption, racketeering, misappropriation, or taking part in organized crime. This issue has recently worsened, and the trade unions are yet to address it. A number of leaders in the trade union consider employers resisting their demands as labor movement enemy who must be eliminated at all cost. Moreover, when workers themselves decline to accept to take part in organized strikes, they are perceived by trade unions as trai­tors who deserve the problems they face in the workplace. All of the above mentioned issues make potential members to shy away. 2.6 Loss of Freedom Another reason that makes people not join trade unions is the fear to lose their freedom. Upon joining a trade union, employees lose the freedom to negotiate benefits or pay for themselves. In a number of instances, what is collectively bargained by the trade unions cannot be of employees’ best interest. As a member of the trade union, employees are not free to make their own decision; for instance, if to take part in a strike or not. Actually, employees can be subject to union discipline or fine if they go against a decision made by for them by the trade union. Considering the high costs of joining trade unions, it has been noted by Meyer (2015) that the rates of unionization are higher for the older people as compared to the young people, who value freedom. Majority of younger employees do not join trade unions because of issues such as reduced freedom and the monthly fee required by the trade unions (Meyer, 2015). Evidently, the Generation Y workers do not like being bossed around or to be told what to do, so majority of them avoid trade unions because they see them as an obstacle to their freedom. 3.0 Conclusion In conclusion, it has been argued that trade unions have in the last few decades experienced a drastic decline in membership across the globe, especially in developed economies. Even though trade unions are still crucial for all workers irrespective of whether working in the private sector or public sector, its recent membership erosion is exceeding alarming. This report has analysed numerous reasons that make people avoid join trade unions. A number of factors that make people not join trade unions as analysed in the report include loss of freedom; poor public image; trade unions have become political; government involvement; and discrimination of trade members. Basically, when people join trade unions, they are rewarded not just with wage premium, but also higher benefits as well as increased workplace protections. 4.0 References Booth, A.L. & Bryan, M.L., 2001. 2001-09 The union membership wage-premium puzzle: is there a free rider problem? Working Paper Series. Wivenhoe Park, Colchester: EconStor. Bully OnLine, 2004. Bullying and the political dimension: Bullying in the public sector and the failure of trade unions to support members. [Online] Available at: http://www.bullyonline.org/workbully/public.htm [Accessed 21 May 2015]. Docherty, J.C. & Velden, S.v.d., 2012. Historical Dictionary of Organized Labor. Lanham, Maryland: Scarecrow Press. Green, E., 2013. Are Shrinking Unions Making Workers Poorer? [Online] Available at: http://www.theatlantic.com/business/archive/2013/07/are-shrinking-unions-making-workers-poorer/278048/ [Accessed 21 May 2015]. Hyman, R. & Gumbrell-McCormick, R., 2010. Trade unions, politics and parties: is a new configuration possible? Transfer: European Review of Labour and Research, vol. 10, no. 3, pp. 315-331. Meyer, J., 2015. Millennials Don’t Want to Join Unions, Here’s Why. [Online] Available at: http://www.economics21.org/commentary/millennials-don%E2%80%99t-want-join-unions-here%E2%80%99s-why [Accessed 21 May 2015]. Schmitt, J., 2008. The Union Wage Advantage for Low-Wage Workers. Research Paper. Washington, D.C.: Center for Economic and Policy Research. Walters, M. & Mishel, L., 2003. How unions help all workers. [Online] Available at: http://www.epi.org/publication/briefingpapers_bp143/ [Accessed 21 May 2015]. Read More