Impact of Economic Background Conditions on Growth of Labor Unions - Essay Example

How Have Economic Background Conditions Affected the Growth of Labor Unions? Introduction Since the inception of labor unions workers are aware they are meant to be protected from the extremes of employers. It is primarily for this reason that unions were popular among workers. They negotiated for workers salary, terms of service and intervened on behalf of workers on a number of issues. Labor unions were therefore relevant and useful to workers. Again, to some extent labor unions have had some relevance in the current situation. In times of recession workers tend to turn to unions for representation (Raine 1). However, the trend seems to change as fewer workers are willing to join unions. There are a number of reasons for this reluctance. One of the commonest is changes in economic situations. Unions try but cannot effectively negotiate on behalf of workers during hard economic times. There is little to be done when companies lay off workers to avert effects of recession. Sometimes as in the recent economic recession companies close down without compensating workers. People lose jobs, salaries are slashed yet unions look on. The public is aware companies will lose out to competitors if all workers are to be compensated. Furthermore with globalization many corporations opt for outsourcing some of their services. New branches are opened in remote areas where the cost of production is low and the company likely to benefit from comparative advantage (Raine, 1). Similarly immigrants pose a big challenge to citizens of a country as they are more than willing to provide quality services at lower wages. Most of these immigrants are not union members yet there are being favored by employers for the limited job opportunities. It becomes challenging for labor unions to negotiate effectively considering an increasing complexity of the workforce. Rate of Economic Growth It is difficult to ascertain whether or not employers should consider economic situations when handling workers. In times of recession for instance companies will do all they deem fit to ensure survival. This means management may choose to lay off workers, slash salaries or outsource services. On taking decisions of this nature labor unions have little to do. Their hands remain tied in these critical times. This is despite workers being desperate for their services. The approach for a collective bargaining may sound unwise in such situations. When workers are laid off due to recession it becomes difficult to intervene on their behalf. This means workers themselves have to find a way to solve this problem. There are those who will opt for self employment or seek to work on contract basis. Similarly in times of high economic growth still there might be no improvement in the terms of service of workers. Again most workers are employed on contract basis. Others work part time for a number of organizations. As there are many unemployed persons in the country it becomes challenging for workers to disagree with employers. Levels of Immigration The levels of immigration have been increasing in the recent past. Countries are opening up to international trade and migrant labor. Most of the immigrants come from developing countries and seek greener pastures in developed countries. In the latter countries workers compete for limited job opportunities with native citizens (Garcia, 1). Interestingly, immigrants end up being beneficiaries as they earn the jobs in numbers. The reason being they accept low wages and have limited demands. On the other hand citizens who are probably union members remain unemployed. Their demands are ignored as unions are unable to effectively handle a diverse and complex workforce. In some cases it is impossible for immigrants to join unions. This means collective bargaining for the unions is hindered. As much as they advocate for solidarity among workers; a significant minority is not represented. This weakens the power and influence of unions. Labor laws vary in different countries hence immigrant workers either lack representation or choose to join fellow workers. In most cases however workers forego this latter option as it involves a lot of procedure and paperwork. There are companies which discourage its workers from joining unions. Most of them are ignorant of labor laws hence unable to complain. Furthermore there are cases of illegal immigrants who would be exploited by employers without complaining. Their terms of service are poor yet cannot complain since they fear deportation. In countries where there are low levels of immigration somehow unions still hold on workers. There is less interference from outside as workers act in solidarity. However such scenario can only be expected in developing countries. These countries receive less immigrant labor. Furthermore immigrants to developing countries are normally highly skilled. They operate in the private sector and on contracts hence majority do not need the services of unions. Increasing Inequality An unequal society is very complex and difficult to handle. The United States and a number of western countries increasingly see a widening gap between the rich and the poor. These high levels of inequality have affected operations of labor unions. In the past the majority of union members were “blue collar” workers. They belonged to one social status with similar income. It was easy then for unions to represent such as unified group. On one side there were the capitalists and poor workers on the other. The union leaders would give directions which workers adhered to without complaints. On the contrary in the current situation unions are in a dilemma. Unlike in the past where “blue collar” workers dominated the labor force, now “white collar” workers are the dominant group. This group that includes managers, clerks and professionals are hard to organize. Further it is the same group responsible for the continued widening of the gap between the rich and the poor. Among workers the middle class may choose to distance itself from union membership (Lind, 1). It becomes even more complicated when they join unions. Their expectations and demands cannot be effectively met by the unions. Similarly, some actions prescribed by unions may not represent their interests. They are likely to ignore orders and directions being given by the unions. As a result only a few join as a formality. The majority feel it is not necessary to do so. The Global Economic Effect The global economy has also had a negative effect on union membership. Increased international competition in sectors such as textiles, automobiles and steel has led employers to resist unions (Gritsch, 14). Furthermore employers find it convenient to shift production to developing countries or areas with less union activities. In these countries workers are paid less and unions are not as powerful. The companies are therefore guaranteed of profits without interference from unions. In addition most of the workers in developing countries are comfortable with multinational companies as they offer better terms of service compared to local companies. Conclusion Labor unions for many years have been representing collective interests of workers. The unions were important as they bargained on behalf of their members. The workers, most of who were “blue collar” acted as one solid group. They shared many things in common and were equally affected by same conditions at work. It was therefore easy for unions to represent them. Furthermore people used to be employed by one employer and worked for their entire lifetime. This is till they retired and thereafter given benefits. The trend has been changing to part time employment, contractual and consultancy basis. The relationship between workers and employer is minimal and for a short period of time. As a result union membership has become less relevant for majority workers. They can easily bargain for their terms of service without necessarily having to involve a third party. In addition globalization is also proving a challenge to labor unions. Most companies are opening branches in remote areas where workers are paid low wages. Unionism in some of these developing countries is low and workers are ignorant of their rights. Similarly there is high mobility of labor yet activities of the unions are still tied in local settings. The majority workers immigrating to other countries do not see the need to join unions. Furthermore the high immigration rate in developed countries has made job opportunities so competitive. Unions are seen to be doing less to combat the problem more so in the private sector. This has seen to the decline in membership. Work Cited Garcia Shelly. Unions Gain Momentum influence. Gale Group, 2006. Retrieved on 25 November 2009 from http://www.thefreelibrary.com/Unions+gain+momentum,+influence.-a0159592201 Gritsch Maria. “Economic Globalization Within U.S. Automanufacturing: Its Effects on Labor, Unions and Working Conditions.” Paper Presented at the Annual Meeting of the American Sociological Association, Hilton and San Francisco & Renaissance Parc 55 Hotel, San Francisco, CA, Aug 14, 2004. Retrieved on 25 November 2009 from http://www.allacademic.com/meta/p_mla_apa_research_citation/1/1/0/7/9/p110792_index.html Lind Michael. Liberalism without Labor Unions. New American Foundation, 2009. Retrieved on 25 November 2009 from http://www.newamerica.net/publications/articles/2009/liberalism_without_labor_unions_17027 Raine George. U.S. Labor Unions Making Gains- Slowly. San Francisco Chronicle. 31 Aug 2008. 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