A “Union” is defined as an organization of employees formed for purposes that include the regulation of relations between employees and employers. Collective bargaining is a system that allows employees to deal with the employer collectively through a trade union, rather than on an individual basis. Unions negotiate and reach agreements with employers on wages and working conditions for the employees they represent and act on behalf of those employees in matters arising under collective agreements. (Union labor contracts) Becoming unionized represents a very significant risk to business. Effects of unionization include:
- significantly increased cost of doing business
- restrictions on employee/employer 1:1 relationship
- loss of operating flexibility
- union grievances
- strikes
- controversy amongst employees
- dependence on seniority
- transfer of loyalty
- discipline problems
- efficiency problems
- morale problems
Unions are a business. They must keep revenues up just like any other business. They must maintain or increase their market share to stay in business. As the labour market demographics shift in the next decade, unions must aggressively target new entrants into the workforce, and that could be your company!
