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Introducing the national labour relations act was a strategy to create fairer labour markets. This was through formulation of statutory regulations that give employees the bargaining power. Rust explains that the rise in union membership at this period was a result of limited business mobility (Rust, 2012).
It is evident that unions in the 21st century face many external pressures because of the globalisation of businesses. Strike observes that NLRA supported the growth of unions successfully in a domestic market place. Business mobility enabled companies outsource jobs into countries with limited legal restraints. This move rendered NLRA ineffective in creating a fair labour market. It is obvious that the global market allocates labour basing on efficiency rather than fairness. Rust points out the stiff competition that unions face in the global market due to their notion to promote fairness. In order for unions to fit into the global market, union laws should discourage the notion of fairness and focus on the changes in market forces.
Rust observes that creation of unions that are able to adapt to external forces is possible if unions give in to powers such as exclusive representation, and mandatory good faith bargaining. Rust provides an example that NLRA, which has the support of many employees, can represent all employees in a bargaining unit in spite of their support of the union. This illustrates exclusive representation. On the other hand, mandatory good faith bargaining requires employees to meet and with a majority supported the union on contracting issues such as wages hours vacation time and other compulsory subjects. Such requirement restricts the bargaining power rights of both employers and employees. This new idea of unions presents unions as monopolistic (Rust, 2012).
Revoking exclusive representation and mandatory good
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Industry when in the infant state is not capable of meeting head-on foreign competition; however, given the time it is capable to flourish and can compete with international players. Short term protection helps industry to develop its comparative advantage.
Why People Organize Into Unions (Employee Labor and Relations class) Human Resource Management Name Course Instructor’s Name Date Why People Organize Into Unions (Employee Labor and Relations class) President Barack Obama in March 2009 stated, “We need to level the playing field for workers and unions that represent their interests, because we cannot have a strong middle class without a strong labor movement” (Strata Research, Inc., 2009).
During last decades the American labor unions have been confronted with a lot of serious problems, which have led to substantial decline of their influence and importance. In the middle of the last century labor unions included 35 percent of the working population.
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Firm A will likely be unionized as compare to firm B. This is because compared to firm B firm A offers non-competitive pay and benefits. Non-competitive pay or wages is one of the reason why most employees go for unions with
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