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Saturday, 3 November 2012

Positive And Negative Effects Offered By Trade Unions

By Tameka Ware


The dawn of the nineteenth century has seen radical movements set by ideologies geared towards empowerment of the working class. This has been set forth by views on social evolution by Karl Marx. It sees their empowerment as the future stages of society. Despite the debacle of that revolutionary idea, many organizations fighting for the right of laborers such as unions Australia are coming strong and are already accepted legally worldwide.

There has been much debate as to whether these groups are effective in providing a balance for the workers and the capitalist. An agreement is made between the two groups which is called a collective bargaining. Looking at the Pros and Cons of the effects of such groups in companies will help one decide if they are indeed beneficial or not.

It is evident that the immediate effect this has on workers is their empowerment. Gone are the days of oppression. Where there was once meager salary, there is now a sustainable income. Some even exceeds the minimum wage. Working conditions were better than before, compensation and benefits are given. Their voice and opinions are already heard.

To settle disputes and demands, a conference is being held. Here, laborers are able to express their side to the management. A settlement will then be made by meeting halfway between the demands of the employers and the employees. This collective bargaining agreement is deemed to be effective provided that the management is not that greedy to withhold what should be rightfully given.

Reasonable salary increases were seen because of the movements of these group. More benefits which includes specific number of rest days, working hours, and health insurances were given. This was hard to get before when workers, specially those in small companies, did not form unions yet.

For every advantage reaped, there were also some negative results. This can be seen in terms of productivity. Contended workers whose pleas were heeded were satisfied and given that, they were able to work more in support of the management for the good of all. However, when these claims were not met, there were rebellions and this could be seen through less work output.

The dark sides of these unions can be seen during strikes. These happen when certain demands are not met. Strikes are one of the most effective tools used by labor groups to force owners to give in to their demands. These claims may be reasonable but the company, which is their source of livelihood, suffers when all productions are halted. This may boomerang back to the employee causing loss of jobs.

The good side of having a higher wage is also counterbalanced by another negative effect. When a higher pay is demanded and given, an employer would lose profit if it cannot balance its cost of labor with profits. The only alternative would be retrenchment. Others will have higher pays while others will have to lose their job to pay for it.

Worldwide, labor groups like unions Australia are still struggling against oppression. A balance between a union and a company is needed for a reasonable working relation. The success of these groups would then have to depend on that balance.




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