Unions

Guide

Pros and Cons of Labor Unions for Employers

Labor Unions have in most cases been seen pushing employers so hard just so they can negotiate for better wages and benefits for their members. For employers, what is more important is having productive employees for more profits but most of them hardly realize what is needed to achieve just that in a workplace environment. Some employers will even try to fight labor union’s demands at all cost, without realizing that there are labor union benefits to employers.

Labor Unions may appear as disruptive to a business but they have a set of advantages that they bring to a company, as well as disadvantages. They always have a brilliant way of bringing balance between employers and employees. Here are some of the pros and cons of labor unions for employers:

Benefits of labor unions for employers

1. A reliable workforce

One of the greatest advantages that employers whose employees have joined labor unions enjoy is a guarantee of a stable and well-trained workforce. One of the mandates of labor unions is to train their members in their trades, which relieves employers of the training costs particularly for inexperienced workers. Employees who are well-trained are able to create safer and better working conditions, which in the end translates to better productivity.

2. Predictability

Employers are usually given time to meet Labor Unions demands and from those demands, one can easily tell what the future operation costs of a business will be like for a fixed period of time. In that case, there is usually enough time for employers to control their costs and develop pricing strategies and sometimes even invest in new products or expansions, just so they can meet their employees’ needs.

Disadvantages

1. It is not easy to reward employees

Labor Unions have specific demands for their members’ wages and raises for every position, making it hard for employers to reward their exceptional employees. Employers whose employees are not members of any labor union have incentive plans in place, for employees who perform above expectations. These are the kinds of plans that encourage employees to perform better in their respective positions but they soon fade away once employees become unionized.

2. Changes in businesses could make them less competitive

Constant demands by labor unions for better wages and salaries could results to higher operational costs for the business. As a result, a business is forced to increase the costs of its products/services, making it less competitive in the business market. In some cases, employers end up counting great losses, forcing him to lay off some of his employees. The stability of some businesses has been jeopardized too, as they try to meet the demands of labor unions.

Labor union employment benefits are many especially for employees who want to be paid better and to enjoy better work environment. They also come with several benefits to employers, as well as disadvantages. When it comes to the overall welfare of employees, employers might benefit a lot by embracing labor unions.

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