A labor union also sometimes referred to as a trade union is an organization that is made up of workers who come together with the main aim being working toward ensuring that the working conditions are improved. They not only advocate for sufficient pay for their members but conducive working environment and protection while at work.
Labour unions began many decades ago and they have since evolved to become so powerful; just like civil society groups have become. However debate has been raging especially among employers who always view labor unions as a threat to the flourishing of their business. The debate has been whether labor unions are ethical or whether they tend to inhibit business. This question is the focus of this discussion.
Labour unions have obviously been hailed by many employees who find them as a safe haven and especially in cases where employees feel oppressed by their employers.
Prior to the formation of labor unions, many employers had the tendency to exploit their employees by failing to provide proper working conditions and also giving them a considerably low pay in comparison to the work that the employees were doing (Mankiw 2007, p.123). Formation of labor unions was therefore a form of protest by employees to demand for better remunerations and better working conditions.
To this extent, labor unions are ethical (Mankiw, 2008, p.23). This is because they ensure that employees are not exploited and that they are provided with proper working conditions, the right equipment to enable them carry their duties effectively and protective gear to protect them from accidents that they may encounter in the workplace.
An employer always has authority over an employee. Therefore, without roper laws in place, the employer might always take advantage of the powerlessness of the employee and thereby exploit him.
Another ethical aspect is in regard to labor unions is the fact that they were able to improve the working hours and according to the Bureau of Labour Statics in America the workers who are members of labor unions get a better remuneration as compared to their counterparts who are not members of a union (Mankiw, 2006, p.45).
Having said that, we must also state that the mandate or authority of labor unions must be limited or curtailed to a certain extent. This is because, when labor unions are not checked, tables may turn and it may be now a case of employees exploiting their employers. We must all remember that all business organizations have one primary goal which is to make profit.
Therefore, if labor unions push on the behalf of their member to have unreasonable kind of salaries and working conditions, the result is that many businesses will close shop and such measures will have defeated the purpose because many employees will be rendered jobless.
Therefore, much a labor unions are important and have contributed greatly to ensuring that employees are not exploited by their employers, they must also ensure that businesses are bale to achieve th4eir main goals which is profit making.
As it is, some labor unions in some countries have become so powerful to an extent that they are inhibiting business by making unreasonable demands to employers on behalf of their employees. This is a mischief that ought to be cured to ensure that in this equation, both parties, the employer and the employee benefit mutually.
References
Mankiw, N. (2006). Brief Principles of Macroeconomics. New York: CengageBrain.com
Mankiw, N. (2007). Principles of macroeconomics. New York: CengageBrain.com
Mankiw, N. (2008). Essentials of economics. New York: CengageBrain.com