HR Week6 - Case Application 14"Save Money Live...

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Case Application 14: “Save Money. Live Better”—Wal-Mart and Unions Interpret The Slogan Differently 1. What are the advantages and disadvantages to Wal-Mart of working with unions? According to our textbook, Labor unions are the acts on behalf of its members to secure wages, hours, and other terms and conditions of employment. Therefore it is common that most business owners would prefer to keep unions out of their businesses. However there are a lot of advantages come form the labors of the unions, because the standards they hold. From reading this case study I find out that Wal-Mart is anti-union, let us take a look at the advantages and disadvantages for Wal-Mart to do it. I think the major disadvantages for Wal-Mart to have union works are the company has to pay a higher wage to the union employees. It also might require Wal-Mart to offer a higher benefit to union employees. Therefore it adds up to big costs for a company to handle. If Wal-Mart hires union employees, the company has to loss some of flexibility in job assignments. It also brings more complexity in hiring and firing employees with union works. Wal-Mart also has to deal with the need for collective bargaining and contracts with employees who would otherwise be “at will”. In worst cases, Wal-Mart also could be dealing with the threat of job slowdowns or strikes form union employees, if they are not satisfied. However, on the other hand, there are great benefits of having union workers. Wal-Mart could have employees who know how to improves corporate productivity and boosts corporate profitability. When a company has union works, they tent to stay satisfied and Wal-Mart could have a lower turnover rate. I also think if Wal-Mart hires union workers, it could have a lower rate of injury on job performance; because Unions help to maintain good safety standards.
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