Labor Economics / Unions - Assignment Example

Labour Economics In this article, Rust focuses on the negative impact the National Labour Relations Act has had on unions. It is evident that there has been a decline of unions in the 21 century because of the failure of adjusting the NLRA to adopt external factors that have an effect on the economy. These forces include competition and globalisation. The survival of unions as Rust states depends on their liberation from NLRA clauses. Rust asserts that the market forces should do the regulation of unions and business relationships.

Prior to the adoption of NLRA, unions had the power to ring employees to the bargaining table through collective action that involve applying of economic pressure. 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 faith bargaining suggests that unions need to work towards the approval of all employees and remain economically competitive. Rust figures out that the greatest challenge faced by union organizers and proponents of NLRA is how they can gain power and get employers to the bargaining table.

Rust suggests that free market structures require unions to adjust their policies and resources based on the demands of each work place and industry. According to Rust, for unions to gain power and get their employees to the bargaining table in the 21st century, unions need to focus on value creation. The unions have a role to play in the bargaing process revoking of mandatory bargain and exclusive representation translates to a change in the bargaining technique (Rust, 2012). The success of unions in the 21st century labour markets requires unions to prove that they are of benefit to both employees and employers.

Rust suggestion of gaining power through value creation is one way of proving this, for instance, the role that unions play in decreasing work place injuries is a mutually beneficial topic that brings both employers and union representatives to the bargaining table. Such an approach does prove the fact that employers can recognize unions without a duty to bargain or economic power. Mutually beneficial topics provide unions with access to the workplace in that they prove to be of value to employees, and in turn, they gain the trust of employers.

This approach provides a strategy for reviving the importance of unions in the 21st century industry (Rust, 2012).ReferencesRust, S. (2012). Reinventing unions for the 21st century. Retrieved November 14, 2012, fromhttp://www.forbes.com/sites/modeledbehavior/2012/10/29/reinventing-unions-for-the-21st-century/