De Unionization and Its Effects

DE UNIONIZATION AND ITS EFFECTS

De unionization is defined as the elimination of unions particularly labor unions from organizations. Unions are important as most companies make profits at the expense of employees. Recent trends however show that deunionization is becoming common due to a number of reasons.

Unions do not have enough resources to monitor every employee’s performance and make the contracts accordingly. Even if they are able to they would not do so as the aim of unions is to view and support the unions and not the individuals. Unions have also increased the probability of conflicts between employee and employers. Such conflicts affect both the labor and the employer negatively by lowering company’s profits and in turn decreasing labor wages.

It is also observed that union workers have less collaborative work environments than non-unionized workers. It creates disunity amongst the workers. Another major reason for de unionization is that labor and employers have both become smarter and are aware of their rights. Hence the employee and employer relation is now seen to be more cooperative than before. Therefore the need for unions has decreased.

 Unions today continue to serve the same purpose for which they started. CEO and executive compensation is above the sky, while the middle class suffers from layoffs, unemployment and stagnant wages. Deunionization has increased wage inequality between the workers at higher post and the workers at the middle. Deunionization has initiated the declining of bargaining power of unions, along with the weakened ability of unions to set the labor standards that raise the wages of comparable work. This lowering of wages is not only because some workers no longer receive high union wages but also because non union employees have less pressure to raise wages.

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                       Yousuf Mukhtar

                         Section: A

                         13-0844