7: 1
Week Case Study
DeVry University, Human Resource Management
Professor Jill Iskiyan
December 12, 2010
2
1. Unions provide training and placement to union workers. They also negotiate wages and benefits
on behalf of the employees and most of the time, that can result in the employees going on a
strike. There are advantages and disadvantages of unions. The advantages of Wal-Mart working
with a union is that there employees are happier because unions help solve social differences. The
disadvantages are that unions cost money to operate and not every employer needs a union to
treat their employees well. Employers generally dislike unions, because they feel like they lose
control of their labor costs. Union generally increase labor costs and decrease profits as a result,
which is another disadvantage for Wal-Mart. With increasing global competition, unions can
sometimes cause more harm then good. Although they do tend to increase wages for the
employees; unions also tend to cause more jobs to be relocated overseas and increase the risk of
local employees losing their jobs for economic reasons. Unions are necessary whenever there are
labor variations. Wal-Mart is a company that pays their employees minimum wage and dont
offer them benefits. Wal-Mart is a contender in the economy and they lower the average wages in
the area by putting small businesses out of business. Wal-Mart also seems to want to close their
stores every time a union is formed and will do whatever it takes to increase profits without any
regard for their workers. (DeCenzo, 2010, p. 340-364)
2. There are a lot of advantages for employees to be members of a union such as, a
union does collective bargaining which can often result in higher wages, better
benefits which are mostly paid by the employer than the employee having a
higher cost out of pocket. Union members also receive better treatment and make
it difficult to be fired for invalid or no reasons at all. The workers are on each
others side and cooperate on a professional level. Along with the great
advantages that a union has to offer there are disadvantages as well. Some of the
disadvantages include that the system can work against you during layoffs, which
can be based off of seniority rather than performance. Another caveat that is based
upon seniority is being promoted or applying for, which I dont agree with. I
believe that if there are going to be promotions within the company it should be
given to the person who is most qualified or deserving of the job versus someone
who has been there longer. Being a member of a union may also cause financial
hardships in lieu of high compensation. For example, there are union membership
dues the that member would be required to pay monthly in order to still be a part
of the union. Also, if there were negotiations in the works between the unions
3
members and employer that were not in the employees, that could cause ground
for the employees to go on strike even if they couldnt afford to do so.
3. Wal-Mart stopping unionization in the United States versus the other countries is unfortunate for
the employees. Although, the United States has a great system of employment laws in place that
do protect employees interests, which is the reason unions were established. With that, I do not
think there are any severe consequences Wal-Mart might face by trying to sop the formation of
unions for the stores among this country. Other countries may not have governing laws like we do
that protect employee rights, so that is why it is more prone there. By stopping unionization, the
only consequence this organization may face is a bad reputation by accusations of mistreating
employees. Even though that may be true, there would be no threat of stores closing or
downsizing. The company is a multi billion dollar company, could by multi trillion dollar, so
profits are good and when profits are good the company will be successful, just so long it remains
consistent; which I do not foresee a problem anytime soon with Wal-Mart. The stores respond
well to todays consumers by providing everyday low prices and a one stop shopping experience.
People will always need a job, especially in todays economy. Along with that, there could be
disgruntled employees that you could run into occasionally, but at the end of the day everyone
should be happy due to the fact that there is a source of employment. Wal-Mart has a good grasp
on the disadvantages it could cause the company by allowing unionization in this country and are
probably better off for it from a business perspective.
4. The National Labor Relations Act regulates the activities of the employees of Wal-Mart and of
Wal-Mart over all. I am not sure if the way Wal-Mart treats its employees is unethical, I am
pretty sure there are other companies that treat their employees worse. One reason that Wal-Mart
does not want a union is because once a union is established Wal-Mart would have to stop
offering the low prices that they have to consumers and that is the entire reputation behind the
Wal-Mart brand. Low prices are everything the company was built on, so the reason they are
against forming the union is protect its business and their consumers or there would not a
company to work for sooner than later. I truly believe that is the employees of Wal-Mart do not
like it, they can simply find another job.