Anonymous asked in Education & ReferenceHomework Help · 1 decade ago

please heelp!!?

what are the effects of unions on small businesses??

2 Answers

  • 1 decade ago
    Favorite Answer

    Good Answers (4) Bryan Beal

    Sr. Director, Worldwide HP Alliance at Riverbed Technology

    see all my answers

    Best Answers in:

    Business Development (1)... see more, Labor Relations (1) see less

    This was selected as Best Answer

    Labor unions are, quite frankly, an illegal Cartel. They fix the price of labor by creating a Collusion on labor Supply. If the same thing existed on the Demand side it would be illegal. Imagine if all retailers got together and agreed behind closed doors to fix their wages. We would send them to prison. But this is exactly what the Unions do on the other side of the table. They are extortion artists. Factory workers are not worth $100k per year. This is simple Supply and Demand.

    I think simple statistics prove the point - Unions have destroyed the US manufacturing economy over the past 50 years. "Button Pushers" on the factory floor demand six figure salaries when a high-school graduate could do their job for $7 an hour. Unions protect unproductive employees at the expense of the productive employees. A simple proof point would be to pay employees based on their productivity. The fact that Unions oppose this prove that they exist to protect unproductive employees.

    I am convinced that Unions are not only detrimental, but illegal. They are a Collusion. they are a Cartel. But if nothing else, they have destroyed our manufacturing economy.

    posted 1 month ago | Flag answer as...

    Les DeGroff

    Software Quality Assurance Lead

    see all my answers

    Best Answers in:

    Organizational Development (7)... see more, Change Management (6), Career Management (6), Business Development (5), Equity Markets (4), Starting Up (4), Government Policy (3), Quality Management and Standards (3), Market Research and Definition (3), Using LinkedIn (3), Job Search (2), Staffing and Recruiting (2), Internationalization and Localization (2), Packaging and Labeling (2), Ethics (2), Small Business (2), Biotech (2), Computers and Software (2), Travel Tools (1), Certification and Licenses (1), Occupational Training (1), Conference Venues (1), Exporting/Importing (1), International Law (1), Offshoring and Outsourcing (1), Treaties, Agreements and Organizations (1), Corporate Law (1), Business Analytics (1), Bond Markets (1), Non-profit Management (1), Manufacturing (1), Project Management (1), Supply Chain Management (1), Personal Investing (1), Personal Real Estate (1), Positioning (1), Business Plans (1), Green Products (1), Enterprise Software (1), Computer Networking (1), Information Security (1), Web Development (1) see less

    Sound bite 1

    Unions are a significant political economic player in many countries, and effects cut both ways. In some situations unions successfully give labor, even knowledge worker labor enough power to negotiate to their group's benefit. In other situations, the power deployed is damaging the competitive ability of firms and governments.

    Sound bit 2

    You seem to be in an ideal career, relative to unions, no chance of the robots organizing soon. The lack of unions, and other human dimensions are a continued factor in deployment of labor displacing technologies including self serve, teller machines and automated production. A lot of union creation in the past 200 years has been in reaction to technology change and potential displacement. There is a tendency, for Unions, to protect or extend membership, to want to lock in a given technology, which in a medium term economic view lowers productivity gains but maintains or extends their members share of returns. Current economic status includes such reductions in productivity in the past, and the redistributions of returns as well. Today's union activity will impact the futures economic status in large ways, esp. considering US trends toward "public service" unions.

    Sound bite 3 Probably can't live with them, nor with out them.

    posted 1 month ago | Flag answer as...

    Walter Orechwa

    CEO, Projections, Inc.

    see all my answers

    In the past, unions had a purpose (child labor, # of hours worked, low wages, dangerous conditions, pre-OSHA and EEOC) and consequently a large membership following (33% of private sector workforce in 1945 were union members). But with power comes responsibility or the lack thereof, followed by corruption, election scandals, large strikes, organized crime and a whole lot of money.

    To where today, Unions are simply big businesses in search of anyone who will join their organization and pay dues. 35% has dropped to 7% and other than the SEIU, membership is still declining. Union focus is lost, mostly in politics and the attempt to regain that power. That lost focus caused the AFL-CIO to split into 2 as 7 unions jumped ship to form the Change to WIn group in 2005. Three years later both groups are sadly identical in nature and power.

    Now back to politics, throwing 100s of millions (not exaggerating) of dues-paying members money into getting Democrats elected including they hope a Democratic President with the single goal and hope of revitalizing this dying industry (remember it's a big business). They are placing all their bets on the passing of legislation called the EFCA-Employee Free Choice Act. In the simplest of terms, the EFCA would allow workers to sign a union authorization card choosing a union as their duly represented bargaining agent and eliminate the current method of having a secret ballot election to determine the outcome of such an election. The Free Choice is a misnomer as the right to vote is actually taken from the employees.

    Ironically or perhaps tragically, in the latest stats by the NLRB (National Labor Relations Board), the AFL-CIO won 64% and the Change to Win won 57% of the current secret ballot elections. Yet somehow the Unions feel this is not good enough. The real problem that Unions have is that 93% of U.S. private sector workers see no real benefits to paying someone to represent them in today's work environment. Please understand that there are plenty of bad bosses, poorly run companies or horrible working conditions out there, but there numerous solutions beyond Unions and most if not all of time (from what I have seen in this business) "the devil you know is better than the one you don't..."


    posted 1 month ago | Flag answer as...

    Don Warden

    Account Portfolio Director, Avanade Inc. - PMP - LION

    see all my answers

    Labor unions, as they exist today, are quite passe. There are adequate laws in place to ensure the protection of workers as well as provide safe avenues for exposure of wrongdoing. This was not the case 100 years ago. Labor laws and protections have evolved while the unions have not.

    In the simplest sense, it can be shown that the remaining unionization has actually been of great detriment to laborers. The constant escalation of wage base has either 1) resulted in off/near-shoring positions or 2) increased the cost of goods significantly enough to cause consumers to choose lower and often inferior goods. When either one of these scenarios play out, US consumers and industry lose.

    My penultimate thought is to point out those who typically join unions; under/uneducated people often living in economically distressed areas. The unions use the tactics of both the stick (job loss) and carrot (increase in wage) to place these poor souls in their grip.

    Finally, all of these things, put together, have increased our unemployment and our national debt.

    posted 1 month ago | Flag answer as...

    • Login to reply the answers
  • Anonymous
    1 decade ago

    Your question has already been answered

    So kindly refer this site*2 - 32k -

    • Login to reply the answers
Still have questions? Get your answers by asking now.