Business Management Employment Law Labor Relations

Essay by ShelbyKSUniversity, Bachelor'sA, May 2009

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Job seekers have many choices in the job market. When an acceptable bargain is reached between a potential employee and an employer, the candidate is hired and expected to fulfill their obligation to the company. Likewise, the company is expected to act in accordance with the pre-employment agreement. Typically, when an employee becomes dissatisfied with a company, the search for other employment begins. However, some employees believe that the better choice would be to form and / or join a labor union within the organization. A labor union is defined as a group of workers who have banded together to achieve common goals in the key dispute areas of wages, hours, and working conditions. The employees may believe that the management has ignored the petitions for resolution to such problems and instilling a union in the workplace may help to solve to issues. Using an organized union, the employee does not need to start over with another company.

As a whole, the employees can make a difference with the employer.

The representation of a labor union is a bargaining tool for the employee as well as a mediator between the worker and management in resolving conflicts. Having a union formed could pose a long-term problem for a company. Typically, a result to a union becoming part of an organization is an increase in wages and benefits. Higher pay and increased benefits produces a loss in profits for the company. This, in turn, could cause layoffs or termination of employees within the company. Long-term, a union may not be the best option. One way companies have tried to resolve this issue is to offer the employees shares of the company profit, thus giving the employees a personal interest in the company's future holdings and helping to ensure the employee has a...