AKnight_Module2_10142023

.docx

School

Rasmussen College *

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Course

2476

Subject

Economics

Date

Apr 29, 2024

Type

docx

Pages

3

Uploaded by CaptainHeatHedgehog23 on coursehero.com

Memo To: Supervisor From: Amanda Knight Date: 10/14/2023 Re: Research on Unionization What is a labor union? A labor union is an organization formed by workers in a particular trade, industry, or company for the purpose of improving pay, benefits, and working conditions. When a labor union gets involved, it selects representatives to negotiate with the employers. That process is known as collective bargaining. Labor unions typically have local chapters, each of which obtains a charter from the national-level organization. (Team, 2022) Today, labor unions are organized by groups of workers who band together to make conscious decisions about the conditions that affect their industry and livelihood. For decades, labor unions have worked to ensure economic and social equity in the workplace and throughout society. Currently, there are over 60 unions representing more than 14 million workers. (Union Plus, n.d.) How do labor unions impact employees? Labor unions are created to help employees increase their pay, benefits, and working conditions. When employees feel as though they need help getting their voice heard regarding tough topics such as pay and benefits, they look to their union representatives to help with negotiating higher wages and better benefit plans. This will be brought to the employer in hopes
of coming to an agreement. Union members can make “union wage premiums,” that is, the amount that union members make above and beyond a non-member. This is typically 20 percent more than a non-member. (U.S. Department of The Treasury, 2023) One of the big disadvantages to employees is the fees and dues associated with the membership of a union. These are deducted from the employee’s paycheck. Depending on the employee's annual wage, union dues might range from a few hundred dollars to more than a thousand dollars a year. A charge may also be required to get started. These expenses are used to supplement the wages of the union officials. (Chief, 2019) How do labor unions impact an employer? The impact on an employer typically starts with increased wages and benefits. They often increase the wages companies pay across the board to their employees. While high- producing employees may be capped at how much they can earn in compensation, underperforming employees are usually given wages above the market value for their skills and production levels. Organizations that offer reasonable compensation and an above-average benefits package may be able to avoid workers' attempts to form a union. If employers are doing well with their employees, they do not have to worry about their employees looking into forming a union. (Vitez, n.d.)Employers that do not review fair market values in compensation and benefits will likely have employees starting the union process to get those wages up and better benefits offered. Another impact of having employees form unions is the right of employees to go on strike, which results in increased expenses for the business. This could result in delayed production, as well as a reduction in revenue. (Sarokin, 2020) 2
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