Impact of Trade Unions

¶ … labor unions on compensation and benefits, issues and challenges, and future trends and outlook. This study will also be geared towards developing important insights on how these organizations are formed and how they work. The need for such information is to gain experiences on how the work conducted by union members has provided personal benefits in one way or another. Some of the major issues that will be examined in the study include why unions are formed and why they are necessary in the modern working environment. Discussions on how unions have a made a difference will be provided based on research and findings. As an argumentative research paper, the author will examine whether unions are crucial promoters and protectors of workplace benefits or they are an outdated impediment to progress.

Opening Statement:

Labor unions are organizations of workers that are established to advance the interests of their members in light of working conditions, wages, and benefits. Since the origin of these organizations, labor unions have played a crucial role in the workplace, particularly in influencing management decisions on employees' wages, benefits, and working conditions. Generally, these unions have provided many Americans the platform to develop from poverty and poor living conditions to live as middle-class citizens towards the realization of the American dream. Consequently, labor unions in the United States have accurately been regarded as a stabilizing force in the country's economy (Williams, 2012, p.9). These organizations have made considerable gains that have brought direct and indirect benefits to the entire public.

Despite the significant role played by these organizations in improving workplace benefits, unionization rate has been on a steady downward trajectory since early 1960s. The steady decline in unionization rate is attributed to various factors such as structural changes to the workforce and economy and globalization or technological advancements. In some cases, this decline is associated with the shift from a manufacturing economy to a post-industrial one, which makes unions irrelevant. The shift to such an economy means that there are less male, blue-collar and less-educated employees and increase in female, white-collar and more-educated employees. These trends have contributed to a greater emphasis that the changing workforce does not need unions and therefore less desire for unionization.

However, there is growing evidence that labor unions are still relevant in today's workforce as they were in the industrial era. Arguments that support the decline in unionization rate have no explanatory power, especially with regards to the desire for unionization. In essence, there is no reason to demonstrate that white-collar and service employees are naturally adamant to collective bargaining and unionization. Therefore, employees in the modern workforce have a great interest in unionizing as compared to past decades. In the past few years, the composition of the unionized workplace has changed to reflect the changes in the composition of the workforce.

Assumptions or Hypothesis:

This research is based on the assumption that labor unions are still relevant in today's working environment despite of the existence of contradictory arguments are reasons. Actually, this argumentative study is based on the premise that modern employees need unions more than those in the industrial era when these organizations originated. The hypothesis in the study is to evaluate the effectiveness of labor unions to the extent with which wages, benefits, and employment objectives are satisfied. This process would provide an accurate evaluation of whether these organizations are promoters and protectors or workplace benefits or outdated impediment to progress.

Discussion of Findings:

The origin of labor unions can be traced back to the 18th Century and during the era of industrial revolution in Europe, which were characterized by an increase in the entrance of new workers into the workforce that required representation ("The History of Labor Unions," n.d.). These organizations and early workers played a crucial role in the independence and development of the United States. While the physical initiatives of trade unions towards the cause of independence were ineffective, they generated concepts that soon became part of the American culture such as protection of employees.

Even though these unions started in the 18th Century, they exploded in the 19th Century as important facets in establishing the rights of workers and promoting and protecting workplace benefits. One of the most significant initiatives towards promoting the establishment of labor unions was the enactment of the National Labor Relations Act in 1935. This legislation acted as a major turning point in the history of labor in the United States (Domhoff, 2013). The Act was meant to provide governmental support to workers' rights to organize unions and use collective bargaining with their employers regarding working conditions, wages, and benefits. Since then, labor unions have grown to become important elements in the modern working environment in relation to employees' rights and benefits. In 2010, the Bureau of Labor Statistic reported that union membership in the United States has exceeded 14 million and grown to more than 37% in the public sector.

Based on this history, the formation of labor unions is primarily for the purpose of promoting and supporting the rights of workers in relation to working conditions, wages, and benefits. In the early years, many trade unions were established to gain workers shorter workdays and higher wages and disbanded after they accomplished their goals. As the changes in the workplace have contributed to the increase in the number of workers, there has been an increased need to protect workers from being mistreated by their employers (Murray, n.d.). Consequently, trade unions are formed to help in enforcing workers' rights in the workplace through protecting them from any kind of mistreatment from their employers. However, in the past few years, these unions have primarily focused on addressing issues of employees' working conditions, wages, and benefits.

While there has been a significant decline in the rate of unionization in the recent past, these organizations are still necessary in the modern working environment. One of the main reasons for the need of unions in today's workplace is that they still serve the same purpose for which they were initially founded ("Labor Unions Today," n.d.). Trade unions are still necessity because of the increase in CEO and executive compensation, increased layoffs among middle class workers, increased unemployment, and stagnant wages and benefits. Similar to the 18th and 19th centuries, unions are necessary because workers still need fair treatment, particularly because many corporations are increasingly focusing on generating profits at the expense of workers. However, the agendas of these trade unions should include increasing wages, improving the standard of living, increase benefits for workers and their families, and establishing safe working conditions. Vowell (2013), state that the future of the United States as a country and developed economy would be strengthened by stronger trade unions.

The necessity and significance of trade unions is demonstrated in the way they have influenced the lifestyle and work of Americans. According to Godard & Frege (2013), labor unions have influenced American life and work by contributing to improved wages and benefits in the workplace and promoting and protecting the rights of employees (p.142). These unions have achieved these goals by providing protections attributed to the exercise of authority and resulting in the ultimate realization of democratic values at work. Therefore, these organizations have changed American lifestyle and work by acting as the primary means through which workers can collectively realize democratic rights and protections related to employment. These achievements are realized in various forms including concrete freedom in the workplace, industrial jurisprudence, and joint voice in the establishment of working terms and conditions. These democratic rights and protections have transformed American life and work by ultimately leading to improved dignity, security, justice, and fairness. While they do not significantly change the basic employment structure, labor unions have altered the exercise of management authority and brought a sense of democracy in the working environment.

The conditions in the modern workplace and laws that have been enacted to promote the welfare of employees can be attributed to the considerable gains made by labor unions in the past. Some of these positive gains include alternative forms of representation in today's workplace, increase in substantive regulation over the past five decades, and considerable improvements in legitimate employment rights (Godard & Frege, 2013, p.145).

It is quite evident that labor unions were and are still very important organizations in the workplace despite of the changing nature of today's workforce as compared to the era when these unions were originally founded. However, there are still numerous concerns regarding the relevance of these unions in the modern working environment. Some groups of workers, policy makers, and employers argue and believe that trade unions are an outdated impediment to progress that are irrelevant in today's workplace. On the contrary, there are others who believe that these organizations are crucial protectors and promoters of workplace benefits that are important in today's workplace in relation to protection of workers' rights.

The opponents of the use of labor unions for collective bargaining in today's workplace argue that the irrelevance of these organizations is demonstrated n the recent steady decline of the rate of unionization. One of the main arguments used to show that labor unions are outdated impediments to progress is the ever increasing managerial hostility and attitudes towards unions. This hostility and attitude is a by-product of negativity as well as other factors or a consequence of combination of factors. Managers have continued to show their negativity towards labor unions because of differences in market composition and structures, changes in labor laws, organization size, differences in public policies, union philosophies, and the impacts of unions on wages (Campolieti, Gomez & Gunderson, 2013, p.100).

Secondly, unions are seen as old-fashioned impediments to progress because many workers are not covered by collective bargaining contracts. Since these organizations are formed to help in collective bargaining, the lack of numerous bargaining contracts to cover many employers make them impediments to progress. In cases where collective bargaining contracts are used, they are negotiated between the company or business and the local union rather than national (Pencavel, 2014, p.143). Therefore, unions are no longer useful since many employers prefer to make the bargain with their employees rather than external organizations.

Thirdly, opponents of labor unions in the marketplace argue that these organizations are outdated because of the huge structural changes that have taken place in the economy or workforce because of technological advancements and globalization. These changes have mainly been brought by the shift from a manufacturing era to a post-industrial economy. These individuals argue that the structural changes have contributed to changes and decentralization of labor policy, which have addressed some of the major concerns and issues regarding workers' rights and protections. The modern labor policy is considered as a major development that results in the irrelevance of these organizations by addressing workers' concerns and ensuring that employers do not mistreat their employees.

However, there is overwhelming evidence that shows that labor unions are not old-fashioned impediments to progress because of their influence on American life and work and their contributions to the current state of the working environment. Actually, trade unions have proven to be crucial protectors and promoters of workplace benefits despite the recent decline in the rate of unionization due to reduced union membership.

First, to argue that these organizations are outdated because of changes in the composition and structure of the workplace is wrong because of the lack of evidence to support this claim. There is not explanatory power to demonstrate that the changing workforce does not need unions and has less desire to be unionized (Warner, 2013, p.111). Moreover, there is no proof that white-collar and service workers who account for a significant portion of the modern workforce are inherently unreceptive to collective bargaining. If structural and composition issues were the main reasons for decreased unionization rates, there would a similar trend of decline in union membership across various countries. In attempts to address changes in composition and structure of the workforce, the composition of unions has changed to reflect changes in workforce composition. This has in turn contributed to an increase in desire and interest in unionizing among workers.

Secondly, the argument that unions are irrelevant because many workers are not covered by collective bargaining contracts is false because of the increased mistreatment of workers by their employers due to lack of such contracts. Actually, the lack of such contracts increases the need for labor unions rather than demonstrating how they are outdated. Labor unions are needed in the workplace because they advocate for the establishment of such contracts that could eventually help minimize the mistreatment and protect workers' rights. Without these contracts, there is an increase in the decline of workers' voice and rights, which have played a crucial role in the increase in managerial and shareholding power at the expense of workers (Hiltzik, 2014).

Third, managerial hostility and attitudes towards labor unions do not necessarily make them outdated and old-fashioned organizations. Actually, the hostility and attitudes is attributed to the fact that managers have lessened these organizations to an extent where they consider them an annoyance to the corporate world. Labor unions have attracted minimal and negative attention from managers not because of their nature but because of managers' negativity towards them. The success and effectiveness of these organizations is not attributed to management attitudes and behaviors towards them but linked to their ability to promote and protect workplace benefits by focusing in workers' rights.

Therefore, labor unions are crucial promoters and protectors of workplace benefits rather than old-fashioned impediments to progress. The need for labor unions in the modern workplace is fueled by the fact that working families need collective power, representation, pride in work, and fair treatment. In the modern marketplace, corporations have mainly focused on generating more profits with little to no attention given to employees, especially with regards to their well-being. In light of this changing nature of work and focus, labor unions provide employees with platforms or opportunities to ensure their rights are protected.

Madland & Walter (2009), state that the essence of what labor unions do give employees a stronger voice to get a fair share of the economic growth they participate in creating. As the economy worsens, trade unions become more important in making the economy work for all citizens. Actually, the recent global recession was partly attributed to the lack of purchasing power by workers to drive the economy. Labor unions can help in avoiding such incidents by contributing to an accelerated pace of economic development. This pace is realized through assisting in the recruitment and selection of workers, instilling discipline among the workforce, and providing avenues for resolution of industrial disputes in rational ways ("Importance of Trade Unions," n.d.).

Labor unions have been tremendous in helping the middle class workers and families to access employment opportunities and championed numerous benefits like health care coverage and pensions. The impact of these unions is evident in the fact that union members earn considerably more than non-union employees while union employers are increasingly likely to provide benefits to their workers. Therefore, these organizations promote and protect workplace employee benefits through three major ways. First, unions help employees to obtain higher wages as compared to their non-unionized counterparts. Secondly, unionization helps to ensure there is growth in workers' wage in relation to increase in productivity. These organizations achieve this by ensuring unionized workers are rewarded for productivity growth. Third, the significance of trade unions in today's workplace is evident in its likelihood to increase the annual wages of workers.

While labor unions have had significant impact on compensation and benefits, they continue to encounter challenges and issues that affect their future trends and outlook. One of the major trends is that unionization rate is expected to continue declining because of increased negativity and hostility towards them. This negativity has been coupled with projections that these organizations add to costs and discourage productivity (Sherk, 2008). Secondly, unions are expected to continue influencing the wages and benefits provided by union employers to unionized workers. Third, labor unions with less influence will increasingly be preferred because of the decline in union approval in recent years. According to the findings of a survey, many Americans have stated that they prefer that unions have minimal influence in the future, especially because of the enactment of several laws to govern the working environment and promote and protect the rights of workers (Jones, 2012). Finally, union support is likely to decline, especially during a down economy, which would contribute to a less-union friendly working environment.