Question

Most employers fight against unionization in their organizations, believing that unions and collective bargaining will drive up the cost of wages and benefits. This would cut into the organizations profits and potentially hamper future success.

If you were a union organizer and the CEO of the company you were trying to unionize wanted to meet with you to discuss potential unionization, how would you explain to the CEO that a union could actually benefit the organization? Assume the CEO is open-minded and cares about the employees, but is also concerned about competing for profits in a difficult economy.

Please explain in 1 pages in your own word please.

Answer 1

The unionization of labor dates back to as old as 17th century i.e. even prior to the Industrial revolution. The objectives of labor unions in these early days were minimal compared to present considering the awareness and a benchmark to compare in those days.

Unionization of labor is usually considered to drive costs up for the firm as the unions demand for better wages/salaries and benefits on a frequent basis. If the demands were not met, unions undergo labor strikes leading to shutdown of the organization's operations and lower productivity for the firm leading to increased costs and loss of revenues.

Below is how the CEO can be convinced to provide a go ahead for unionization of the labor thus creating a win-win situation both for the firm as well as employees -

1. Unions organize the labor which makes it easy for any negotiations or discussions with the organization's management without which there might be unorganized and adhoc protests by a group of employees for any issues or grievances.

2. Improving the working conditions for the employees thus leading to an increase in productivity for the firm.

3. Providing job security and workplace safety to the workers ensuring retention.

4. Resolution of disputes between labor and management and within labor

5. Avoiding any litigations from employees by negotiating and addressing grievances internally

6. Aiding the workers who are old, injured and retired thus creating a goodwill for the organization.