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Memo
To:
Supervisor
From:
Amanda Knight
Date:
10/14/2023
Re:
Research on Unionization
What is a labor union?
A labor union is an organization formed by workers in a particular trade, industry, or company for the purpose of improving pay, benefits, and working conditions. When a labor union gets involved, it selects representatives to negotiate with the employers. That process is known as collective bargaining. Labor unions typically have local chapters, each of which obtains a charter from the national-level organization. (Team, 2022) Today, labor unions are organized by groups of workers who band together to make conscious decisions about the conditions that affect their industry and livelihood. For decades, labor unions have worked to ensure economic and social equity in the workplace and throughout society. Currently, there are
over 60 unions representing more than 14 million workers. (Union Plus, n.d.)
How do labor unions impact employees?
Labor unions are created to help employees increase their pay, benefits, and working conditions. When employees feel as though they need help getting their voice heard regarding tough topics such as pay and benefits, they look to their union representatives to help with negotiating higher wages and better benefit plans. This will be brought to the employer in hopes
of coming to an agreement. Union members can make “union wage premiums,” that is, the amount that union members make above and beyond a non-member. This is typically 20 percent more than a non-member. (U.S. Department of The Treasury, 2023) One of the big disadvantages to employees is the fees and dues associated with the membership of a union. These are deducted from the employee’s paycheck. Depending on the employee's annual wage, union dues might range from a few hundred dollars to more than a thousand dollars a year. A charge may also be required to get started. These expenses are used to supplement the
wages of the union officials. (Chief, 2019)
How do labor unions impact an employer?
The impact on an employer typically starts with increased wages and benefits. They often increase the wages companies pay across the board to their employees. While high-
producing employees may be capped at how much they can earn in compensation, underperforming employees are usually given wages above the market value for their skills and production levels. Organizations that offer reasonable compensation and an above-average benefits package may be able to avoid workers' attempts to form a union. If employers are doing well with their employees, they do not have to worry about their employees looking into forming a union. (Vitez, n.d.)Employers that do not review fair market values in compensation and benefits will likely have employees starting the union process to get those wages up and better benefits offered. Another impact of having employees form unions is the right of employees to go on strike, which results in increased expenses for the business. This could result in delayed production, as well as a reduction in revenue. (Sarokin, 2020)
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Related Questions
Organizational Structure and Functions of Unions in Canada
arrow_forward
Large unions have a number of
organizing opportunities and launching organizing campaigns.
1) union organizers
2) regional representatives
3) chief stewards
4) bargaining delegates
5) labour representatives
on staff who are responsible for identifying
arrow_forward
(Case Study: Unionizing Information Technology Workers) Why haven’t unions been more successful in organizing IT workers? Graduate and research assistants at New York University in 2000 were granted the right to join unions, but a federal body reversed that decision in 2004. Do you think the unions would have been more successful in organizing this group than IT workers? Why or why not?
arrow_forward
Make essay/report for organizational behavior class.
Explain and describe what is organizational behavior and why we need it; Explain implications of demographic and cultural diversity for organizational behavior; Explain the challenges of managing a multicultural workforce; Explain person–job fit and work behaviors ; explain person–organization fit and work behaviors. Describe the link between values and individual behavior ( Big five personality traits; meyers-briggs type idicator); Explain work attitudes that affect work behaviors. List the key set of behaviors that matter for organizational performance; Explain the role of motivation in determining employee performance. Explain how to increase the motivating potential of a job, understand why goals should be SMART;
*** Include real-world examples
arrow_forward
12-4 Give reasons why unionization rates have declined in recent decades
8.
(Unionization Rates) What trends have worked against the union movement during the last half century? What has happened to the effectiveness of strikes and why
arrow_forward
Spying on union representatives or employees who are attempting to unionize is a violation of Section 8(a)(3) of the Wagner Act (NLRA).
False
True
arrow_forward
A works Council or Committee is composed of both employer and employees convened to discuss matters of common interest concerning a factory, plant, business policy, etc, not covered by regular trade union agreements. Which of the following cannot be considered by "works committee"?
Select one:
a. Sports and Health activities
b. Safety and Drinking water facilities
c. Wages and allowance
d. Celebration and Adjustment of festivals
arrow_forward
Contrast the Knights of Labor with the AFL.
arrow_forward
Question 6
The union-management relationship is complex, please list and explain the factors that can affect this
relationship.
arrow_forward
Part I: Suppose the firm's labor demand curve is given by:
w = 60 – 0.03E
where w is the hourly wage andE is the level of employment. Suppose also that the union's utility
function is given by:
U = w x E
The marginal utility of the wage for the union is E and the marginal utility of employment is w.
(a) How many workers will be employed under a monopoly union contract?
(b) What wage would a monopoly union demand?
arrow_forward
(c) Offer two ways that unions can increase worker
productivity.
arrow_forward
16-4 A City and Its Unions
Robert G. Flanders Jr., the state-appointed receiver for Central Falls, RI, said his city’s declaration of bankruptcy had proved invaluable in helping it cut costs. Before the city declared bankruptcy, he said, he had found it impossible to wring meaningful concessions out of the city’s unions and retirees who were being asked to give up roughly half of the pensions they had earned as the city ran out of cash. Why does bankruptcy give the city bargaining power against its unions?
arrow_forward
Question 10 (1 point)
Saved
Quantity of Labor Supplied
Wage
Total Cost of Labor
Marginal Cost of Labor
Marginal Revenue Product
50
$10
$500
$10
$30
100
$12
$1200
X
$25
150
$15
$2250
$21
$21
200
$18
$3600
$27
$18
250
$20
$5000
$28
$15
Use the labor market data for a monopsony employer above. Find the wage and quantity of labor the firm will hire.
Question 10 options:
$12; 100
$25; 100
$15; 150
$21; 150
arrow_forward
lll ll
Question 3:
In 2018 steel workers in America received the biggest wage
increase in six years after long negotiations with the steel
companies. Source: Singh, Rajesh Kumar (2018). See link:
https://www.reuters.com/article/us-u-s-steel-union-contract-
exclusive/exclusive-u-s-steel-workers-set-to-get-biggest-pay-
raise-in-years-sources-idUSKCN]MQ2Q3
At the same time the price of aluminium, which is a substitute
for steel, has seen a price drop in 2018 selling at below
US$2000 a tonne. This is mainly due to increased supply of
aluminium from China. Source: Djukanovic, Goran (2018).
See link:
https://aluminiuminsider.com/aluminium-year-in-review-and-
what-to-expect-in-2019/
What are the effects on the equilibrium price and quantity of
steel if the wages of steelworkers rise and, simultaneously, the
price of aluminium falls? Draw a diagram to support your
answer.
arrow_forward
Union shops are subject to potential competition
Multiple Choice
Since most union members do not take strikes seriously.
Because some union shop workers refuse to join the union.
Since striking union members may be ordered back to work by the president.
From replacement or substitute workers.
arrow_forward
SEE MORE QUESTIONS
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Related Questions
- Organizational Structure and Functions of Unions in Canadaarrow_forwardLarge unions have a number of organizing opportunities and launching organizing campaigns. 1) union organizers 2) regional representatives 3) chief stewards 4) bargaining delegates 5) labour representatives on staff who are responsible for identifyingarrow_forward(Case Study: Unionizing Information Technology Workers) Why haven’t unions been more successful in organizing IT workers? Graduate and research assistants at New York University in 2000 were granted the right to join unions, but a federal body reversed that decision in 2004. Do you think the unions would have been more successful in organizing this group than IT workers? Why or why not?arrow_forward
- Make essay/report for organizational behavior class. Explain and describe what is organizational behavior and why we need it; Explain implications of demographic and cultural diversity for organizational behavior; Explain the challenges of managing a multicultural workforce; Explain person–job fit and work behaviors ; explain person–organization fit and work behaviors. Describe the link between values and individual behavior ( Big five personality traits; meyers-briggs type idicator); Explain work attitudes that affect work behaviors. List the key set of behaviors that matter for organizational performance; Explain the role of motivation in determining employee performance. Explain how to increase the motivating potential of a job, understand why goals should be SMART; *** Include real-world examplesarrow_forward12-4 Give reasons why unionization rates have declined in recent decades 8. (Unionization Rates) What trends have worked against the union movement during the last half century? What has happened to the effectiveness of strikes and whyarrow_forwardSpying on union representatives or employees who are attempting to unionize is a violation of Section 8(a)(3) of the Wagner Act (NLRA). False Truearrow_forward
- A works Council or Committee is composed of both employer and employees convened to discuss matters of common interest concerning a factory, plant, business policy, etc, not covered by regular trade union agreements. Which of the following cannot be considered by "works committee"? Select one: a. Sports and Health activities b. Safety and Drinking water facilities c. Wages and allowance d. Celebration and Adjustment of festivalsarrow_forwardContrast the Knights of Labor with the AFL.arrow_forwardQuestion 6 The union-management relationship is complex, please list and explain the factors that can affect this relationship.arrow_forward
- Part I: Suppose the firm's labor demand curve is given by: w = 60 – 0.03E where w is the hourly wage andE is the level of employment. Suppose also that the union's utility function is given by: U = w x E The marginal utility of the wage for the union is E and the marginal utility of employment is w. (a) How many workers will be employed under a monopoly union contract? (b) What wage would a monopoly union demand?arrow_forward(c) Offer two ways that unions can increase worker productivity.arrow_forward16-4 A City and Its Unions Robert G. Flanders Jr., the state-appointed receiver for Central Falls, RI, said his city’s declaration of bankruptcy had proved invaluable in helping it cut costs. Before the city declared bankruptcy, he said, he had found it impossible to wring meaningful concessions out of the city’s unions and retirees who were being asked to give up roughly half of the pensions they had earned as the city ran out of cash. Why does bankruptcy give the city bargaining power against its unions?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
- Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax