Labor Unions in America
Labor Unions in America Today
Johnny A. Martinez
4328763
HRMT407 I002 Win 13
23 Mar 2013
After researching the history and analyzing the current state of labor unions, my personal opinion is that the current role of unions in the United States should not be increased. Labor unions are costly and can lead to higher product prices and less competitive situations for some companies. This affects the consumer and can eventually hurt the economy. Less people will demand products and can lead to company closures and employee lay-offs. This cycle is bad for business and for the American consumer as well. It becomes very difficult for some businesses to produce a profit when they have to pay higher wages, taxes, insurance and overhead costs. The labor unions also handcuff the company to hire and retain non-productive workers that normally would not be retained without the help of the unions. According to Spear (2013), “While members traditionally enjoy higher wages, that cost must be accounted for somewhere. Whether passed along to the customer as higher prices on goods or services, made up for by hiring fewer workers or limiting the wages of non-union employees, the increased cost of union workers has an effect on a company’s economics” (Labor Costs). I think it’s important for businesses to operate in a manner where they can control who they hire and retain. They can incorporate policies and regulations that dictate fair treatment of employees, offering competitive wages, receiving fair and equitable benefits and having a safe workplace. Unions can often benefit themselves just as much as the employee. They can gain political prestige, posturing and membership, rather than sincerely considering the well-being of the employee. Unions once played a pivotal part in ensuring reasonable worker conditions and pay, but today, there is much more incentive for businesses to take care of their employees and avoid government and society scrutiny as to avoid the high price
Johnny A. Martinez
4328763
HRMT407 I002 Win 13
23 Mar 2013
After researching the history and analyzing the current state of labor unions, my personal opinion is that the current role of unions in the United States should not be increased. Labor unions are costly and can lead to higher product prices and less competitive situations for some companies. This affects the consumer and can eventually hurt the economy. Less people will demand products and can lead to company closures and employee lay-offs. This cycle is bad for business and for the American consumer as well. It becomes very difficult for some businesses to produce a profit when they have to pay higher wages, taxes, insurance and overhead costs. The labor unions also handcuff the company to hire and retain non-productive workers that normally would not be retained without the help of the unions. According to Spear (2013), “While members traditionally enjoy higher wages, that cost must be accounted for somewhere. Whether passed along to the customer as higher prices on goods or services, made up for by hiring fewer workers or limiting the wages of non-union employees, the increased cost of union workers has an effect on a company’s economics” (Labor Costs). I think it’s important for businesses to operate in a manner where they can control who they hire and retain. They can incorporate policies and regulations that dictate fair treatment of employees, offering competitive wages, receiving fair and equitable benefits and having a safe workplace. Unions can often benefit themselves just as much as the employee. They can gain political prestige, posturing and membership, rather than sincerely considering the well-being of the employee. Unions once played a pivotal part in ensuring reasonable worker conditions and pay, but today, there is much more incentive for businesses to take care of their employees and avoid government and society scrutiny as to avoid the high price
References: Has the American government been a friend or foe to unionism. (2013). Retrieved from http://www.socialstudieshelp.com/lesson_50_notes Mayhew, R. (2013). What Role Does a Human Resource Manager Play in Labor Contract Negotiations?. Retrieved from http://http: www.http://smallbusiness.chron.com/role-human-resource-manager-play-labor-contract-negotiations-16571 Spear, B. (2013). Negative Effects of Labor Unions. Retrieved from http://www.ehow.com/list_6683091_negative-effects-labor-unions .