The Relevance of Labor Unions to Stakeholders

Running Head: LABOR UNIONS

LABOR UNIONS 11

Labor Unions: Impact on Stakeholders

Introduction

In the 21st century, labor unions have become integral in the workplace environment. This not only applies to employees working in the public sector, but also in privately owned organizations (Jacobs, 2013). Although there are various beneficial implications associated with labor unions, it is evident that there are also many challenges associated with the said unions. One of the main dimensions that can be used in analyzing the reasons as to why labor unions are not necessarily good involves the society.

There are numerous ways through which the labor unions have negative implications on society - including making a contribution to the increase in the price of products and services for consumers as well as occurrence of strikes that can sometimes derail service delivery and even result in destruction of life and property. Another dimension that is important in terms of evaluating the good and bad of labor unions involves employers. The reasons as to why employers are better off with labor unions is because they provide a platform of open and effective communication with employees while also improving the extent to which an organization is compliant with the relevant labor rules and regulations. Employers also benefit from labor unions because employees’ morale is improved significantly – resulting in improved outcomes in the workplace, i.e. in as far as productivity is concerned. These issues have been examined extensively within the context of this research.

Question 1: Labor unions are generally not good for employees

Labor unions are not generally good for employees. There are various reasons as to why labor unions are not generally good for employees. One of the most notable factors of evaluation is the issue of membership fees. In order for an employee to be considered as a member of any labor union, they are required to pay a certain amount for membership fees. In most cases, there are instances during which the membership fees for labor unions are required every month while in other situations, such payment is required every year (Hogler, 2020). This type of financial obligation is not ideal for an employee because it implies that an individual must part with a certain amount of money so that they can be recognized as members of labor unions. There is need to at all times be considerate of the financial implications of any decision including membership for labor unions. This is an aspect that is indicative of the reasons as to why the membership fees is an aspect that clearly demonstrates that labor unions are not generally good for employees. As a matter of fact, during periods of downturn in economic activity, labour unions could further eat into the little that employees are left with.

Apart from the fact that employees are required to pay membership fee, another reason as to why labor unions are not generally good for them is that these organizations might not necessarily reflect or stand for the specific values of an individual. There are many instances during which some employees might not necessarily be in agreement with the mission or values of different labor unions. This implies that being a member of such unions is in direct contradiction to the personal values of some employees. When making decisions on whether to become a member of any labor union, it is always important for an employee to be considerate of this implication in order to ensure that they are adequately cognizant of what they are getting into. For instance, in some scenarios, the cultural, political as well as social perspectives of individual employees could clash with the prevailing viewpoints of labor union leadership. It therefore follows that to a large extent, one could argue that labor unions are not generally good for employees because they discourage or interfere with individuality. It is important to note that according to Devinatz (2019), in any workplace or organization, individuality is important in many ways. For instance, it serves as an influential platform on which innovativeness is promoted within the workforce of an organization. Thus, in order for an employee to be innovative at a workplace, it is imperative that they maintain a considerable level of individuality so that they can excel in their respective field of specialty. When individuality is discouraged either directly or indirectly within the organization, it can be significantly difficult for an employee to achieve the required or potential level of innovativeness in their respective duties and responsibilities. This implies that being a member of a labor union is counterproductive in terms of enhancing the success of an employee when it comes to innovation because of the inherent implication of such membership on individuality within an organization or in a workplace.

Apart from compromising innovation, another reason as to why any aspect that discourages individuality is not desirable for an employee is that it can hamper the overall extent to which an employee achieves the highest possible level of career growth and development. Although different employees are characterized by different objectives and aspirations, the ambition of growing one's career and overall level of professionalism is a common aspect among the objectives and career goals of most individuals across different workplace scenarios or environments. Although there are many factors that can compromise career growth and development at the workplace, the lack of individuality is one of the main contributing issues.

When the levels of individuality at the workplace are compromised in any way, it is significantly difficult for an individual employee to achieve the highest level of career growth and development. This is an aspect that not only applies in the short-term but also in the long run. Membership in any labor union is a major factor that can compromise the levels of individuality within the workforce because of the emphasis placed on collective purpose and direction. When an employee is a member of any union, there is always the significant risk that the framework of their respective career growth and development will be significantly undermined. This is also an attribute that can have a negative implication in terms of an individual employee achieving their potential as far as professional excellence is concerned. All the factors highlighted above could conspire to compromise an employee’s capability to perform in an effective manner in the workplace, resulting in conflicts with an employer as well as career stagnation. It would be prudent to note that the establishment of a healthy working relationship with the employer is an important aspect that makes a significant difference in terms of the level of success achieved by an employee in their respective duties and responsibilities within the working environment. It is in the best interests of any employee to ensure that they are in good terms with the employer because this can also have a bearing on critical career progression aspects such as promotion. Thus, it should be noted that although there are a myriad of factors that could easily create conflicts between employers and employees, belonging to some labor unions is one of the main factors. This could also be the case when the specific labor union that an employee belongs to does not necessarily have a good relationship with the employer. This is more so the case given that as Devinatz (2020) observes, “employers and labor unions seem to approach employment and employee rights from vastly different perspectives” (p. 15). To a large extent, this is a standoff that can easily cause conflict between the employee and the employer not only in the long-term, but also in the short-term.

When an individual is a member of any labor union, they are required to take part in the different activities and initiatives organized by such unions. Some of these activities might be time consuming and this can have a detrimental effect on the effectiveness with which an employee is focused on their respective roles and responsibilities at the workplace. An example is when an employee has an important leadership position in the specific labor union that they belong to. Such leadership positions are demanding not only in terms of time, but also in terms of energy expended because of the numerous responsibilities that they come with. Some of the said responsibilities could be inclusive of, but they are not limited to, playing a representative role when bargaining crucial benefits or terms for members (Schulman, 2019). This is an aspect that is inconsistent with best practices in terms of improvement of performance at the workplace because it makes it significantly difficult for the specific employee to be fully committed to their professional job.

In view of the perspectives presented above, it is evident that there are many ways through which labor unions are not generally good for employees. The fact that being a member of such unions can compromise professional growth and development while also creating potential conflicts with the employer are significant factors of consideration that must always be prioritized by an individual before making decisions on whether to be a member or not. These are also aspects that can also be helpful at the organizational level in efforts to weigh the cost and benefits of labor union membership for employees – both in the long-term and in the short-run.

Question 2: Labor unions are generally good for employers

Historically, labor unions have been considered bad or counterproductive for employers. However, it should be noted that labor unions can also be good for employers. There are different reasons as to why labor unions are good for employers. The said labor unions play an important role in protecting the rights of employers in diverse engagements with employees. When the rights of employees have been protected in the workplace, it implies that the organization or employer is compliant with important labor laws and regulations that have been enshrined within the framework of the country's constitution. Although there are many factors that affect the success of employers in any industry or sector, the ability to maintain and work within the stipulated labor rules and regulations is one of the most important issues of priority.

When the employees in an organization do not belong to any particular labor union, there is always a significant risk that the employer will have violated numerous legal requirements that are necessary for compliance with the relevant labor laws of the country. However, such a scenario is averted when employees are members of recognized labor unions. Compliance with labor laws and regulations is also an important aspect for employers because it goes a long way towards ensuring that an organization minimizes the risk of being embroiled in endless legal disputes with employees. Such legal disputes often have serious cost implications. As a matter of fact, suits whose outcome are not in favor of employers could undermine the financial well-being of the employer in the short-term and also in the long-run.

From a different perspective, it is also important to accentuate the fact that allowing employees to belong to specific labor unions is an approach that improves the effectiveness with which an organization relates with the general public. Public relations make a significant implication on the success and overall performance of an organization. This is because positive public relations are associated with improved and strengthened public image. To a large extent, the general public (and by extension customers) would want to be associated with an enterprise that has an acceptable public image. This cannot be achieved when an employer is considered or perceived to be stifling the rights of employees by prohibiting them from joining or becoming members of labor unions. This implies that the perspective of improved public image of an organization is a significant aspect that is indicative of the reasons as to why labor unions are good for employers.

It is notable that the levels of productivity in the workforce are strongly dependent on the moral and overall attitude of employees in the said workplace environment. Although there are many factors contributing significantly towards employee morale and attitude, a sense of belonging is one of the most important issues of priority. When members of the workforce have a sense of belonging, it is possible for them to be highly productive in their respective duties and responsibilities.

One of the main ways in which this sense of belonging can be entrenched within the workplace is by allowing employees to be members of labor unions. This is because the employees feel protected and recognized when they are members of the said unions. For the employer, improved morale and productivity of employees is an important issue of priority because it has significant implications on organizational performance and level of success with which its distinctive organizational goals and objectives are achieved within the stipulated time frame. In the absence of labor unions, it can be difficult for this outcome to be achieved because there is always the risk that the workplace could morph into a rather toxic environment. A toxic work environment where employees feel that their needs are not being addressed in an appropriate manner could compromise employee commitment and loyalty.

The ways in which labor unions are beneficial to employers can also be analyzed in terms of the fact that they provide a platform on which grievances of the workforce can be communicated effectively. Although there are many factors that can undermine the efficiency and success with which employees are effective in their respective duties and responsibilities at the workplace, not having a reliable platform to communicate grievances to the employer is one of the main challenges. It is important for the employer to be receptive and encourage any platform or mechanism that provides a system of knowing or identifying the various challenges and issues being faced by employees across the different departments of an organization.

The implementation of a framework that allows employees to be members of labor unions is one of the best ways through which such grievances can be communicated because the unions promote the interests and well-being of members of the workforce in any workplace environment. When labor unions communicate the grievances of employees to employers, this makes it possible for changes or adjustments to be made accordingly (Terriquez, 2011). It is also evident that labor unions make a significant contribution in terms of strengthening the manner in which employers and employees relate with each other because of the reliable communication systems associated with the unions. These attributes are indicative of the numerous reasons as to why labor unions are generally good for employers.

Question 3: Labor unions are not generally good for society

Labor unions are not generally good for society. One of the main reasons as to why society is better off without labor unions is that they play an influential role in the increase of prices of products and services for consumers. There are many ways in which labor unions play an influential role in affecting the prices for products and services in the market. Labor unions are notorious in terms of agitating for an increase in the payments and salaries provided to their members in the specific organizations that the said members work in. In order for the employer to afford an increase in the salaries and wages of employees, they could be forced to hike the prices of the specific products and services they offer to consumers. This strategy of generating additional revenue is a burden on society because individuals have to pay more money to access specific products and services.