Trade unions refer to associations of employees whose primary agenda is to check on the employee - employer relation. Formation of trade unions began in the 1800s and their influence has grown ever since. The existence of these unions is entrenched in the constitution. They advocate for the favorable working conditions and sound wage rates for their members. Additionally, they represent their members in any disciplinary cases and protect the freedom of association. Suffice to say is that these unions have a positive impact on both the employers and employees. However, employers generally resist trade union formation in their companies. This resistance is highly motivated by the reasons discussed below.
Higher Wage Rates
The principal aim of trade unions is to negotiate better terms of service for their members. Higher wages and salaries is always the resulted of these terms. As such, a unionized workforce will always demand higher salaries and wages as compared to their non-unionized counterparts. In the United States, research has shown that union members make an upwards of 20% more than non-unionized workers in salaries. This translates to a higher cost of production and sliced profit margins. This rubs employers the wrong way, hence it explains their ardent resistance to trade union formation (Cornfield & McCammon, 2003).
Strikes and Production Disruptions
More often than never, trade unions demands may be untenable to the company causing strikes or slowdown of work. This causes both direct and indirect losses to the company. The direct loss occurs because of disrupted production and the indirect loss due to the negative publicity caused by the strike. This becomes worse if the consumers sympathize with the striking workers and boycott the company’s products. Therefore, employees’ resistance to trade union formation is mainly a precautionary measure to avert such future losses.
Limited Human Resource Control
Trade unions minimize the employer’s ability to freely manage the workforce. It is always manager’s wishing to promote workers based on merits and qualification. Unfortunately, the trade unions’ approach to such issues as promotion is based on the seniority. Additionally, trade unions restrict employers from disciplining the workers. These instances of interference are not taken lightly by employers as it negatively influences their long-term plans, hence this supports their open resistance of trade union formation (Mooney, Knox & Schacht, 1997).
High Costs of Lawsuits and Arbitration
Unlike individual workers who may not be too keen to challenge the employer’s decisions, unionized workers would most certainly challenge any decisions that are seen as a threat to their job security. This is mainly because of the support of the trade union.
In conclusion, employers are all for a happy and motivated worker. Their only problem is the excesses of trade unions and interference in management of human resources.