Labor Unions Are Good for the US Economy

Document Type:Annotated Bibliography

Subject Area:Microeconomics

Document 1

Worker's labor organizations have changed in the context of social, political and financial success of America and their impacts have greatly assumed the improvements to the American people today. During the times when the wages paid to workers were extremely low, no virtual existence of safety regulations and working for long hours without compensation, various employees gathered around these unions to address such issues and any other issues affecting them with their employers (Hattam 5). To put this plainly, through the Unions, decision making power and acquisition of input by the employees have been made easier and appropriate because before this, the management and or leadership control were being held by the universal authority and no any other responsible party. Even though, in regards to the 21st-century workforce, unions have turned out to be a greater degree of luxury than a need in the real world (Kaufman et al 3). While the points of interest remain, unions likewise can represent an issue for workers and administrators alike to some levels hence leading to unsustainable economic growth. Therefore this paper will divulge on the pros and cons of these unions to the US economy. These unions have currently emerged and have been well established over decades to serve the purposes of protecting the rights of employees as well as safety and regulations required by the top leadership in the management for addressing the issues affecting the employees to boost the productivity in the economy. In addition to these, the paper will finally present the personal opinionated viewpoint of these unions in regards to the economic growth.

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In any sustainable economy to be reached workers needs to be cared for and rewarded appropriately to get the adequate incomes and other benefits to help them purchase the goods and services at the prevailing market prices. In this scenario, labor unions are considered important in fueling the economic growth through protection of the rights of the workers. This is because maintaining safe and secure working environmental conditions are the top priority for their formation and to ensure proper economic growth is achieved. Workers also gain a lot through unions by receiving adequate compensations and benefits such as coverage for health care, vacation payment as well as payment for sick leave which are based on the collective bargaining agreed upon expiration (Kearney 14). Labor unions allow employees to group and collaborate in their full numbers and speak their voices collectively thereby motivating the essence of respect and credibility in the organizations as opposed to when an individual come as a single person to invoke the necessary change of organization behavior.

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Through these, the level of productivity in the economy is boosted because employees become motivated especially when they know that they are secured and protected through the feelings of their labor unions. Fortunately, unionization of labor organizations was more likely to boost the incomes and rewards of employees in their ever increasing productivity. Where there are no good working relationships, the productivity will be lowered plunging the economy to a standstill (Kaufman et al 22). Lockouts also present another issue of concern since they are not well incorporated in the labor organizations but are within the management systems. They play the role of mandating the employees to come to terms of the available offer, but in a real sense, employees will view this as a coercion which can lead to aggravation of the previously contained volatile cases in the economy.

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Contracts offered by the Union in the US seems rigid making it hard for any adjustment to be made to benefit the employees especially when business condition changes and there is need to reduce the working hours, lay off some workers or the fall of revenue. Labor unions play a pivotal role when it comes to the protection of rights of employees both unionized and nonunionized in any given economy. Human Resource Management Review (2017) Fossum, John A. Labor relations. Mcgraw Hill Higher Educat, 2014. Hattam, Victoria C. Labor visions and state power: The origins of business unionism in the United States. Lester, Richard Allen.  As unions mature: An analysis of the evolution of American unionism. Princeton University Press, 2015. Tomlins, Christopher. The State, the Unions, and the critical synthesis in labor law history: a 25-year retrospect.

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