Labor Union Relations - Essay Example

Labor Union Relations Introduction A labor union is a formal organization of employees and wage-workers that is formed to protect their interests and pursue fringe benefits for them. These unions play a vital role in negotiating compensation and promotion for unionized as well as non-unionized staff members. They are established to convey voice of labor through proper channel and enhance working conditions and environment of premises. However, in recent years, the trend of labor unions has declined substantially, thereby demanding other less monopolistic alternatives to replace their functions and provide platform for safeguarding interests of employees (Freeman, 1976).

We discuss in detail the essential role played by unions and methods that can be deployed to cover their absence. Discussion Majority of people have started to believe that labor unions have become obsolete and are no longer required due to changing conditions and dynamic environment labor unions have been valued in previous years for several benefits driven for employees as well as the organization. These unions provide a pleasant working environment for workforce and keep employee satisfaction intact.

This improves organization’s reputation and reduces employees’ turnover. Ensuring that all employees get a fair treatment, the presence of unions establishes equality and eradicates unjust favoritism, providing reasonable chance to deserving workers. Bureaucratic environment is discouraged and promotions and regular increments in salaries are duly pursued by management. Today, all multinational organizations are composed of a diversified taskforce and often face racial and ethnic conflicts.

Had there been labor unions, everyone would have had been treated equally with no discrimination or unfair dismissal. Labor unions are mainly popular for ensuring that employees get market-competitive remunerations, job security, adequate health coverage and other fringe benefits in accordance with their professional profile and credentials. Labor unions can effectively be used in today’s economy but require some essential modifications in order to match evolved market conditions. A major flaw the past system possesses is the adverse impact on operations of the company in the event of disagreement between union and management.

If a certain negotiation doesn’t go the way union desires it so, then management faces significant resistance, inefficiency and ultimately losses. Not only does the company suffer but also causes many workers to lose their jobs. Another common shortcoming is the ‘last hired, first fired’ rule which requires that junior employees shall be terminated first in order in event of downsizing. Unions must be established that eliminate possibilities of termination of workers on discriminatory or lobbying grounds and provide protection to whistleblowers.

Collective bargaining should be entertained to avoid retaliation of employees but only to reasonable levels that do not affect corporate profits or goals substantially. Seniors should be respected but not at the cost of losing new valuable employees. Promotions should not be based on seniority levels or favoritism. All requests from unions which strengthen health and safety measures for workers shall be accepted while demands for unrealistic wages or demands that stifle productivity or reduce potential profits shall be denied.

Labor union shall not be allowed to take percentage proportion from wages of workers. No employee shall be bound by decisions of labor union unless top management announces the same. Bargaining agreements are no longer effective due to need for flexibility, flatter hierarchies and short-term benefits. As an alternative, companies may wish to completely disregard labor unions and engage other similar plans to support employees’ welfare. Various plans are available which provide partnership stakes and profit-sharing options to employees.

These incentives encourage their commitment to work, long-term association and sincere productivity. Management must treat all employees as assets, appraising and rewarding their performance. They must be involved in decision-making processes and be empowered to motivate them. Grievance committees and other forums shall be formed where employees can voice their concerns and express their recommendations. Additionally, freelancing unions can be formed which ensure that its members receive sufficient healthcare benefits and represent their interests.

Employees of modern world like their jobs and believe themselves to be part of the team. However, they need, in return, some form of security, sense of belonging and a platform to address their objections. These needs can be met by introducing various involvement programs for holding discussion sessions. Some examples include self-directed teams, departmental committees and on-site independent designated personnel for this purpose. Conclusion Unions have always been believed by the masses as means for enhancement of economic and social environment in a workplace.

The unique concept of collective bargaining has been cherished by workforce for decades and is still applicable in many organizations (Kochan, 1979). However, many contemporary entities have departed from the need for unions in their structures and hence adopt or seek more constructive methods to fulfill the gaps created between strategic management and operational core. The executive managements of majority of organizations have acknowledged the need for developing similar arrangements to satisfy and retain their human assets.

For this purpose, companies many implement one of the abovementioned mechanisms or establish unions with fundamental modifications that promote employees’ welfare and provide them a platform for voicing their concerns. References Freeman, R. B. (1976). Individual mobility and union voice in the labor market. The American Economic Review, 66(2), 361-368. Kochan, T. A. (1979). How American workers view labor unions. Monthly Lab. Rev., 102, 23.