Pros & Cons of Union Representation from Individual, Organizational and Society Perspective

1622 Words May 25th, 2013 7 Pages
Pros & Cons of Union Representation from Individual, Organizational and Society Perspective

The rise of unions from the 1930s through the early 1950s was due to the convergence of a number of events, an economic policy that attempted to restrict competition beginning in the 1930s, the belief that labor markets were noncompetitive and that individual workplaces were unfair and union premiums were low. The passage of favorable legislation, in the form of the Wagner Act, was a reflection of the idea that unions could actually improve the functioning of labor markets and serve as a countervailing power to big business. Over the past several decades, union membership has declined because government policy became pro-competitive, it
…show more content…
American jobs are disproportionately being created in the service-producing sectors rather than the goods-producing sectors, and in professional and managerial occupations rather than in blue-collar occupations. In addition, the American labor force is increasingly better educated and more mobile, whereas unions have traditionally been strongest among less educated and less-mobile workers. But the high wage premium also contributes to the compositional shift between union and nonunion firms within a given sector. At least partly as a result of the higher costs, R&D expenditures and new capital investments in unionized firms lag behind levels in nonunion firms. As a result, new employment opportunities, whether through the construction of new establishments or the startup of new businesses, occurs primarily in the nonunion sector. Since newly established firms start off as nonunion, the more dynamic the economy, the faster unions have to organize new plants simply to maintain a constant share of employment.
Organizations opposition to unions' organizing efforts has been an important factor in explaining the difficulties unions have faced in meeting the requirements to hold a certification election and the lack of success in winning the elections that are held. Here again, although management opposition may be somewhat of an external factor, it also ties closely with

Related Documents