Pros and Cons of Unions
McKamie 1
Wendy McKamie
Mrs. Cornelius
Business Law
October 6, 2011
The Pros and Cons of Unions
During the active growth of the industrial movement in the nineteenth century,
uneducated country fold went to larger cities to work in factories and ended up in substandard
work environments, more often than not making low wages. Labor unions formed as a way for
these workers to band together to have equal rights. Labor unions help their members by
negotiating wages, benefits and working conditions – also known as collective bargaining
(Ashcroft and Ashcroft, 354). A single worker would have a slim chance acquiring a raise by
simply going to the employer and requesting one. However, a union worker has the backing of a
group of people that all work towards the same goal. The union has the benefit of representing
the entire workforce, therefore having more success.
On the down side, unions have so much power they can sometimes raise wages and
benefits to unrealistically high levels. When this happens, the cost of labor is often passed down
to the consumer, making products more expensive. The trickle-down effect hurts the economy
and brings the cost of living to levels that the average Joe can’t always handle. It is simple
economics. If labor costs are higher than the market determines it should be, after taking into
account all other factors that make up production, then workers will be laid off or their
compensation will be decreased. Wages are an important factor of production (Harding, 2011)
Benefits offered through a union include family health care that never denies
coverage, disability insurance, retirement and death benefits. Regardless if they are working or
not, if the union dues are paid, they will always have these benefits.
Members have to pay a fee to be in the union. Commonly called union dues, this is often
a deterrent for someone that is not yet a member of a union.
Wendy McKamie
Mrs. Cornelius
Business Law
October 6, 2011
The Pros and Cons of Unions
During the active growth of the industrial movement in the nineteenth century,
uneducated country fold went to larger cities to work in factories and ended up in substandard
work environments, more often than not making low wages. Labor unions formed as a way for
these workers to band together to have equal rights. Labor unions help their members by
negotiating wages, benefits and working conditions – also known as collective bargaining
(Ashcroft and Ashcroft, 354). A single worker would have a slim chance acquiring a raise by
simply going to the employer and requesting one. However, a union worker has the backing of a
group of people that all work towards the same goal. The union has the benefit of representing
the entire workforce, therefore having more success.
On the down side, unions have so much power they can sometimes raise wages and
benefits to unrealistically high levels. When this happens, the cost of labor is often passed down
to the consumer, making products more expensive. The trickle-down effect hurts the economy
and brings the cost of living to levels that the average Joe can’t always handle. It is simple
economics. If labor costs are higher than the market determines it should be, after taking into
account all other factors that make up production, then workers will be laid off or their
compensation will be decreased. Wages are an important factor of production (Harding, 2011)
Benefits offered through a union include family health care that never denies
coverage, disability insurance, retirement and death benefits. Regardless if they are working or
not, if the union dues are paid, they will always have these benefits.
Members have to pay a fee to be in the union. Commonly called union dues, this is often
a deterrent for someone that is not yet a member of a union.
Cited: Ashcroft, John D. and Janet E. Ashcroft. Law for Business, Seventeenth Edition. South-Western, Cengage Learning, 2011. Harding, Jeff. “Why Unions Are Bad for the Economy.” 22 July 2011 The Daily Capitalist. Jaggers, James (current member of Local Sprinkler Fitters Union 669). Interview with Wendy McKamie 26 September 2011.