Unions have been playing a vital role since the 19th and 20th century America when workers did not enjoy any rights and did not get a work friendly environment, salary etc. But today, there are many laws to protect the rights of employees. When it comes to unions, corporations want to get rid of them because they cost a lot of money to a company. Not just directly, but indirectly as well. Slower work process, less productivity, poor employee relations and many more such things are associated with unions.
- Unions act as a lobby where they can force corporations for higher wages and packages for their employees, but are not competitive when it comes to competition. The demand for so many benefits can drive a company into the ground and make then unable to compete with other countries. There are also companies that may have to hire union labor because of government contracts.
- Unions can slow down the economy for the middle income group by increasing their service price. This can affect the consumers as the corporations will raise the prices of their products. This can result in less profit, less vacancies and outsourcing the jobs. Unions definitely prove to be beneficial to their members but at the cost of consumer satisfaction, and to those workers who are denied jobs. There have been studies done to show that unionized companies earn profit between 10 to 15 per cent less than non-union companies.
- Unions dealing with politicians can make them sway to their demands, since politicians are dependent on their votes. And since salary does not come from politician’s pocket, political leaders can easily give in to their demands.
- A union member will earn more than a non-union member. Many join unions to get higher pay. Because of competition, unions do not fight for the rights of newly joined members if the company is not doing well. Nowadays, unions demand higher wages from companies that are doing well like Research and Development, capital investments, etc.
- Union contracts can restrain the wages of productive workers and raise the wages of those who are less competent. Unions reallocate money among the workers. Every worker will get the same benefits regardless of their contribution. Therefore, many good workers do not join unions which can affect the progress of a company.
These are some of the reasons why corporations want to get rid of unions.