A trade union is an organization, which is made up of workers who are permanent, or temporary formed to protect and improve the rights at their workplace and to enhance their status in society (Huat, 2007). In these days, trade union become key developmental agents in society and gains a lot of interest in relation to productivity because strong existence of trade union can give an industrial peace.
What roles can trade union play in promoting productivity?
As many of organizations go to globalization, the rapid changes in technology, and increasing market, organizations have to be competitive. In order to be a successful organization, it depends highly on human resources like workers’ skills, experiences and on productivity. Therefore, trade unions need to play a role of proactive and supportive in helping management so that work force will become productivity (Boon, 1999).
According to Derek Bok and John Dunlop (1970), the impact of trade union in productivity has long been one of the major controversies among analyst of unionism. (C.Bok & T.Dunlop, 1970)
Union aids members in training or internships so that employees will become higher skill workers. It has found out that participants can get knowledge, skills and confidence to take on the new role and increase activity in the workplace from the training courses. Therefore, higher skill workers will perform higher and as a result productivity will increase. (Trades Union Congress, 2009). In industries like construction, unionized training program appears to be higher workers’ productivity.
Moreover, union helps organizations by providing ways of consulting with workers over changes and reducing the chances of staff resistance. All of these can lead to a more devoted and ...
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As companies look to expand operations and hire new employees, many economic and environmental factors are taken into consideration. The cost of labor is one of the primary concerns as labor generally constitutes a large part of company budgets. The organization of labor by unions further increases this concern. The wages of unionized workers are significantly higher than the wages of nonunion workers in almost every industry (Fossum, 2012). Higher wages generally result in reduced company profits, lower share prices, and reduced shareholder returns (Fossum, 2012). Unionization also reduces the employer’s flexibility with regards to hiring, transferring, or promoting employees (Fossum, 2012). Productivity may be negatively impacted by unionization because merit is often eliminated as a criterion for wage increases or promotions (Fossum, 2012). As a result of these negative impacts, employers are motivated to oppose unionization.
The Industrial Revolution that took place after the Civil War made for a more economically sound country. American workers, however, were becoming more and more dependent upon their wages; a fear of unemployment also stemmed from this. Workers didn’t share in the benefits that their employers reaped. In a chart representing the hours and wages of industrial workers, from 1875 to 1891, it shows that even though their wages were subtly increasing, their 10-hour work day remained the same (Doc. A). Factories were headed by large corporations; this, in turn, meant that new machines lessened the amount of workers in certain fields. As a result of these unsuitable conditions, labor unions were formed. The challenges that these unions faced weren’t easy. If the workers involved in organized labor got too far out of line, these corporations could get federal authorities involved. Moreover, these companies could enforce “ironclad oaths” upon their employees. In a Western Union Telegraph Company employee contract, in 1883, it states that the employee will not be affiliated with any societies or organizations (Doc. E). Despite such setbacks, by 1872 there were over 32 national unions.
Wallerstein, M. & Western, B. 2000. Unions in Decline? What Has Changed and Why? Annual Review of Political Science. 3: 355-377.
Trade unions represent groups of workers on a collective basis. The most important trade union is the Australian Council of Trade Unions (ACTU), which is the peak union body to which most unions are affiliated. Trade unions membership has declined substantially from the 1970’s with an average membership of 55% to just 23% in 2003. This is caused by the increase in casual and part time employment, growth in industries with low union membership such as retail and the decentralization of wage determination.
Unions have an extensive history of standing up for workers. They have advocated rights of steelworkers, coal miners, clothing factory employees, teachers, health care workers, and many others. The labor movement is based on the idea that organized workers as a group have more power than individuals would have on their own. The key purpose of any union is to negotiate contracts, making sure workers are respected and fairly compensated for their work. “In theory” unions are democratic organizations, resulting in varying inner authority. Workers look for security within a job a...
As factory operators pushed their employees to work longer and harder in order to increase profits, unions were formed. An example of this would be the fraternal organizat...
History shows that there has been conflict of power within the workforce between union and management. This essay will discuss if management should have the right to determine whether a union should operate within their workplace. It is necessary first to discuss the roles of unions and management in the workplace and discuss both points of view on the power distribution between unions and management in the workplace.
Union efforts to improve the lives of workers consistently met with resistance, oftentimes violent, from businesses, police and the government throughout their turbulent history; and yet unions have persevered and were able to improve working conditions. The National Labor...
Factories were known for their ill treatment of their employees, long hours and dirty and unsafe conditions. In 1866, unions started to form to improve working conditions for the workers. A fundamental problem faced by democratic societies is as long as people live their lives individually and go their separate ways and be selfish individuals, they are unlikely to meet collectively to resolve issues. There needs to be meaningful unity among people to alleviate this problem to get people obliged to one another, so there is a willingness to sacrifice for shared goals. Bonding of its citizens creates a democracy. Unions seemed to offer the middle class a chance to become a crucial part of fostering institutions of constitutional democracy. The unions have went through several transitions, but have always worked for the working force. I will discuss the history of the various unions, their wins and losses, and the struggle of the employee to achieve democracy in the workplace.
Labor Unions were created to help people improve their wages, work conditions, hours, and security. Unions impacted the world in a lot of ways and for that we have better lives now, for what they did in the past.” Some key freedoms that we take for granted today- the weekend, for example- were won by labor unions efforts, but we have always been lukewarm about the movement” (History of Labor Unions).
Throughout American history, labor unions have served to facilitate mediation between workers and employers. Workers seek to negotiate with employers for more control over their labor and its fruits. “A labor union can best be defined as an organization that exists for the purpose of representing its members to their employers regarding wages and terms and conditions of employment” (Hunter). Labor unions’ principal objectives are to increase wages, shorten work days, achieve greater benefits, and improve working conditions. Despite these goals, the early years of union formation were characterized by difficulties (Hunter).
Clutz, R. (1995). Labour and management: Working together for corporate transformation. Canadian Manager, 20(3), 16.
In many nations, the relationship between labor and production has often been a tense one. On one side of the equation, businesses have insisted on greater productivity at lower costs. On the other side, labor (most often in the form of labor unions) has insisted that increased productivity can be best be achieved if the workers have a reasonable “living” wage and job security (Howard 2002).
Willman, P. (2004) 'Structuring Unions: The Administrative Rationality of Collective Action' in Kelly, J .and Willman, P. (eds.) Union Organisation and Activity, pp. 73-89 London: Routledge.
Tolich, P., & Harcourt, M. (1999). Why do people join unions? A case study of the New Zealand engineering, printing and manufacturing union. New Zealand Journal of Industrial Relations, 24(1), 63-73.