Importance of Unions in Enhancing Fair Wages for Workers

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Table of Contents

Introduction
Discussion
Conclusion
References

Introduction

The relationship between employees and employers has been gradually changing as the world faces various changes in the labor relations. During the industrial revolution, the employers were generally accused of mistreating their employees, especially in terms of poor pay and inhuman working conditions. After some time, employees realized that the best way of dealing with the rogue employers is to form the labor unions.

Unionization has become very popular among the employees across the world. One of the main responsibilities of these unions is to champion for fair wages for the employees. According to House (2014), employees in various industries, especially those working for the government, still depend on the unions to negotiate for fair wages with their employers on their behalf.

However, the labor market is changing rapidly, and many employers now prefer negotiating terms of employment with individual employees based on their knowledge, skills and talents. This puts to question the need for the unions to champion for the rights of the employees. This research paper seeks to determine the importance of unions in ensuring fair wages for workers.

Discussion

The labor market has been experiencing revolutionary changes in the recent past. This means that the role of the employee unions is changing based on the changing needs of the employees. According to Oxford (2014), it is a fact that employees still need unions to champion for their rights on cases such as unfair dismissal, oppressive rules and regulations, or poor working environments.

However, the role of the unions in championing for fair wages for the employees still remains a contentious issue because of these changes in the labor market. There are those who argue that it is still needed, while others feel that it is no longer necessary. It is important to discuss these two different views.

Arguments for unionization

According to Clark (2014), unions are still important in negotiating a collective bargain for the employees in the market. Many employees, especially those who work in the government institutions, are paid based on their job groups. This means that employees in a given job group will have the same wages unless there are other additional responsibilities which justify the need for an additional compensation.

Unions work well in cases where a large group of employees faces a similar problem that can be solved through a collective bargain. The employees in the current society still face similar compensatory problems that can be solved through a collective bargain. According to Porter (2014), Wal-Mart employees have been demanding for an increase in their wages to be at par with the industry average.

This giant retail store has very many employees. When these employees negotiate for fair wages from an individualistic perspective, they may not be in a position to win the battle with the employer. It is easier for an employer to intimidate an individual employee into submission than when they are in the unions. This means that through the unions, the employees are in a better position to air their grievances to the employer.

According to Schrager (2014), many American firms are still afraid of the impacts of industrial actions organized by large unions. Such industrial actions not only cause loss in terms of the working hours, but may also lead to a serious damage of property if the workers go on rampage.

For this reason, these employers are always willing to negotiate with such unions in order to avert any industrial action. This means that although many people believe that these unions are no longer necessary, they still offer the best solution when it comes to championing for the rights of the employees, especially in terms of fair compensation.

Arguments against unionization

According to Dufresne (2014), the labor market has been changing, and this has been redefining the role of the employees unions. The unions were very powerful and relevant in championing for the improved earnings during that time when employees in the same grade were earning the same amount of wages.

However, this is no longer the case. Many organizations are now embracing performance contracts from an individualistic perspective when defining the wages and other compensations for their employees. According to Klein and Foster (2014), the era when employees were paid based on their job group and the number of years they have been within an organization has long gone.

Currently, employers are looking for specific qualities from their employees. The employees who have superior qualities based on their academic knowledge, skills, and talents are always considered more valuable than those with lower values, irrespective of the time they could have taken within that particular firm.

Employees’ unions work best when the employees have a common problem. If it is about compensation, it will be needed if employees at various job groups earn a particular amount of money. However, this is no longer the case, especially in the private sectors that employ large numbers of people. The employers currently prefer negotiating for the employee compensation from an individualistic perspective.

They prefer compensations based on the value that a given employee has to the organization. The employees are also embracing this new system as a more realistic approach to determining their pay. Price (2011) says that it was demoralizing for a skilled and dedicated employees to be given the same amount of salary as those with lesser qualifications just because they fall in the same job group.

Under this new context, employees know that their pay is based on their potential. This has completely eliminated the need for the unions. According to the research by Noe (2013), unions are becoming irrelevant institutions in this country especially given the increasing liquidity of the job market. Employees currently feel that they do not need the unions to champion for their rights.

Their skills and knowledge are needed in various companies, and the moment they feel uncomfortable with their current employer, they can easily move to another employer who has better terms of service. Employees now feel more empowered, and this has reduced the relevance of these unions as institutions to champion for better compensations for the employees.

Conclusion

Employees’ compensation still remains one of the contentious issues in the current labor market. While employees feel that they deserve better pays, most of the employers always have the feeling that what they are offering to their employees is the best. During such cases of struggle for the pay increase, employers would always emerge as winners because they had the final say on whether or not to increase the wages.

In the past, such stalemates would be resolved through industrial actions organized by the unions. The problems still exist in the current society. However, the labor market has experienced massive changes that have redefined the role played by such unions.

Employees are currently considering negotiating for their pay based on an individual’s special skills and talents. This means that although these unions may still be important, their relevance is slowly waning as employees go for individualistic compensatory negotiations with their employers. This has reduced the impact of unions on negotiating for better wages for the employees.

References

Clark, N. (2014). Air France Pilots Extend Strike After Request for Mediation Is Denied. New York Times. Web.

Dufresne, C. (2014). Big Ten commissioner says NCAA enforcement is overmatched. Los Angeles Times. Web.

House, J. (2014). Worker Compensation Stalls in Second Quarter.The Wall Street Journal. Web.

Klein, G. & Foster, C. (2014). USC, UCLA athletes keeping eye on Northwestern unionization case. Los Angeles Times. Web.

Noe, R. A. (2013). Fundamentals of human resource management. New York, NY: McGraw-Hill.

Oxford, C. (2014). Here’s How to Keep Competitors from Poaching Your Employees. New York Times. Web.

Porter, K. (2014). Cinven Increases Employee Pay 25% on Rising Fee Income. Bloomberg Business Week. Web.

Price, A. (2011). Human resource management. Andover: Cengage Learning EMEA.

Schrager, A. (2014). Underpaid Employees Are a Cyber security Risk. Bloomberg Business Week. Web.

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