Trade unions are the largest and most powerful employee organizations in the U.S. Unionized employees’ perks include higher wages and bonuses, greater job security, and defined dispute resolution procedures. Collective bargaining allows unions to negotiate higher salaries and bonuses; thus, unionized workers often earn more than non-unionized workers (Stevenson, 2018). Fringe benefits include health insurance and short-term disability insurance, which translates to a large portion of overall remuneration for union employees. Most union employees receive paid leave, including paternity leave, and have access to retirement packages from their employers.
Based on employment policies and contracts, trade union employees have greater job security than non-union workers. Non-union employees typically have at-will employment agreements, where employers may terminate workers for any reason except discrimination based on race, age, or religion. Conversely, union members are free to voice their concerns without fear of retaliation, as they can only be fired for justifiable reasons or subpar work performance (Maryville University, 2022). Employees have an easier way of handling grievances with management and other workers based on a union’s established official channels for dispute resolution.
Disadvantages of unionization include union fees, lack of autonomy, slower employee advancement, and workplace tension. In a closed business environment, unions levy fees to cover the wages of union officials and workers during strikes. The dues offset any financial benefit from the increased salary, resulting in stagnant upward mobility. Unions have less autonomy as members must abide by the union’s decision (Maryville University, 2022). Lack of autonomy results in less innovation when making union choices. Unions hamper employee advancement since their laws make hiring or firing members difficult. Most union bylaws favor seniority; thus, new hires who perform well will likely be fired or passed over for promotions (Stevenson, 2018). Similarly, it can be challenging to demote older staff members for subpar results. Unions increase the tension between employees and employers as they can sue organizations for compensatory damages. The increased tension may lead to a lower level of trust and satisfaction in the workplace.
Over the past several decades, union membership has steadily declined due to the union’s repressive bylaws, globalization, and the proliferation of the digital landscape. Union bylaws’ preference for senior members regarding promotion and layoffs came at the expense of junior workers. These repressive rules, coupled with the end of one company’s employees, led to decreased union activities as employees gained an advantage over the unions. Today, employers increase wages and provide benefits to retain their talent pool, thus circumventing the role of unions.
Trade unions were influential in the industrial age, where strikes and boycotts were effective. However, globalization has increased competition between nations regarding manufacturing, thus reducing unions’ leverage position. In addition, trade unions are facing a diminished need as artificial intelligence, which does not require unionization, encroach on the work of conventional job performers (Selko, 2019). However, union activities have flourished during the pandemic, as 65% of all Americans approve of labor unions (Hess, 2021). The pandemic revealed the helplessness of essential workers, such as nurses and logistics employees, who could not obtain personal protective equipment. The pandemic has amplified support for unions as it demonstrated that working families deserve representation, collective bargaining power, and fair treatment. The U.S. economy has been impacted by unions, as they are still a powerful influence in politics. Unions aid in securing better pay and working conditions for employees and promote upward mobility. Changes to the bylaws, which are the source of the disadvantages of unionization, would help the plight of workers.
References
Hess, A. J. (2021). How the coronavirus pandemic may be causing support of labor unions to rise. CNBC. Web.
Maryville University. (2022). What are the pros and cons of unions? Maryville Online. Web.
Selko, A. (2019). Are unions still the voice of the employee? Industry Week. Web.
Stevenson, M. (2018). Pros and cons of labor unions. HR Exchange Network. Web.