Costs and benefits
Allowing the unions to decide the employees’ package has more costs than benefits to the management. The management feels that union leaders are unable to comprehend the obligation of running a successful business while the union leaders feel that the management does not understand the obligations and risks involved in the job performance. Therefore, if the unions are allowed to decide the employee packages, then the obligation of running a successful and productive business will fall on them. In such a scenario, the unions will be careful with how they handle the business since if it falls then they lose employees. This is a benefit to the management.
However, even if the unions are to decide the employee benefits, they cannot be allowed to run the business. Therefore, they will try to maintain the main goal of increasing employee packages so that the employees can contribute more to the unions and the unions to attract more members. All the unions try to do it to raise the salaries of the unionized members above the salaries of the non-unionized members so that the non-unionized members can join the union. The unions will not care about the productivity of the business. Their business is getting more members, which will be done by raising the employees’ packages.
It would be better for companies to device ways of keeping employees away from unions. A company does not have to wait for a union to push them to pay employees well. It can be done if the employees are productive.
Response to Rosie Jenkins
Hi Rosie, great thinking over there, I agree with you unions want to increase wages, benefits and reduce layoffs. They do not care much about the productivity of the business rather they care about their own benefits. When there is a decrease in profits in any industry, the unions do not realize that this may call for reduced costs through a cut in wages. Reduced wages will mean reduced contributions to the unions and they will fight. However, to some point the decision can be beneficial in that the unions can have the feeling of having the obligation to make the hard decision of cutting wages when productivity is low.
Response to Joseph Anderson
Hi Joseph, great analysis over there, I do not seem to agree with you that it is fair for employees when unions decide their economic packages. Yes, it will be mass negotiations but better economic packages mean more contributions to the unions and more members for the unions. It can be better for the employees but not always. If the unions push too much, the employers can decide to lay off workers to cut costs, which is not beneficial to workers or unions. However, it would be better since the employees would be well looked after to motivate them remain in the unions.
Response to Marva Charmaine Gammons
Hi Marva, great work over there, as a business owner you know what the unions can do to a business. Their motivation is getting more members through negotiating for employees as an advertising method. They do not care about increased production costs or low productivity. They care about their membership. The management should focus on adaptability. Employees should be able to adapt to the prevailing economic conditions. When business is good, they can get a pay rise but when business is bad, they should also accept a pay cut. Unions do not care about the productivity of the business or the increase in costs.
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