Importance of Trade Union for HRM

 Importance of Trade Union for HRM

01.What is a Trade Union?

A trade union is an organisation made up of members (a membership-based organisation) and its membership must be made up mainly of workers.One of a trade union's main aims is to protect and advance the interests of its members in the workplace.Most trade unions are independent of any employer. However, trade unions try to develop close working relationships with employers. This can sometimes take the form of a partnership agreement between the employer and the trade union which identifies their common interests and objectives.

Figure 01.Trade union is  ?

02.History of trade union 

As an organized movement, trade unionism (also called organized labour) originated in the 19th century in Great Britain, continental Europe, and the United States. In many countries trade unionism is synonymous with the term labour movement. Smaller associations of workers started appearing in Britain in the 18th century, but they remained sporadic and short-lived through most of the 19th century, in part because of the hostility they encountered from employers and government groups that resented this new form of political and economic activism. At that time unions and unionists were regularly prosecuted under various restraint-of-trade and conspiracy statutes in both Britain and the United States.

While union organizers in both countries faced similar obstacles, their approaches evolved quite differently: the British movement favoured political activism, which led to the formation of the Labour Party in 1906, while American unions pursued collective bargaining as a means of winning economic gains for their workers.

Figure 02.History of Trade Union 

03.Importance of Trade Unions

03.1. To Employees

    -Members of the union tend to have higher wages than non-unionized workers.

     -Trade unions also sometimes act as representatives of workers in case of legal matters

      -The rights of the employees are better protected. For example, they cannot be unjustly removed from work.

03.2. To Employers

       -Since the individual rights of workers are better protected and well represented, they tend to be motivated. This results in higher levels of efficiency and improved productivity.

04.Advantages to Workers

Of course, as advantageous as unions can be to employers, they also offer substantial benefits to employees. The key benefits are higher negotiated salaries and a level of job security not ordinarily found in non-union shops.

There are other advantages as well:

• Multiplier effect: 

Workers in a non-union factory or other facility have a limited collective voice, but participation in a union provides a larger platform that reverberates not only companywide but throughout the industry, states and nationally. Unions work effectively to ensure that worker concerns are heard at every level of company management and political power.

• Spillover effect: 

Union victories regarding wages and benefits can benefit more than union members. Remember the bumper sticker about the weekend? That's a union-provided benefit that now applies across the economy as the working norm.

• Life after retirement: 

Union members tend to enjoy better-funded retirement options than many non-union workers, especially in terms of lifetime pension benefits after retiring.

Figure 03.Advantages of trade union 

05.Disadvantages of Trade Unions

Not everyone is a fan of unionization. Complaints are common among employers and employees alike. Among the most commonly cited disadvantages of unions are:

• Costs to workers: 

Union members typically pay fees to finance the union's activities. Although the union makes the case that increased salaries and benefits more than make up for any fees assessed, not all workers are eager to have yet another deduction from their paychecks.

• Costs to companies: 

Higher pay and benefits amount to a larger overall payroll at unionized companies. Of course, the argument goes that the more you put in, the more you get out, but not every manager is supportive of this philosophy.

• Disruptions:

 Unions organize strikes, slowdowns, publicity campaigns and other strategies that can interfere with normal day-to-operations or cast a company in a negative light. Many firms prefer to sidestep these potential inconveniences by keeping their facilities union-free.

• Loss of Flexibility: 

The flip side of the job security provided by unionization is that it can be difficult for a company to let go of an underperforming employee or advance its best employees to higher positions and salaries. Union rules may require such advancements be made based on seniority rather than performance. Rules might also restrict employees from performing tasks outside their job descriptions, further limiting workplace flexibility.

• Adversarial Relations: 

Not all workplaces manage the delicate task of maintaining a good working relationship between unions and management. When every decision is challenged, every change to a workplace resisted, every request denied, the outcome can be a toxic atmosphere at work that severely affects site morale and overall performance.

References 

01.https://www.britannica.com/topic/trade-union

02.https://blog.ipleaders.in/what-every-indian-needs-to-know-about-trade-union-related-laws-in-india/?amp=1

03.http://www.simplinotes.com/structure-trade-union/

04.https://aflcio.org/what-unions-do

05.https://smallbusiness.chron.com/advantages-labor-unions-organization-21119.html

06.https://www.lawteacher.net/free-law-essays/employment-law/the-importance-of-trade-unions-law-essay.php

07.https://assignmentpoint.com/importance-of-trade-unions/