Role of unions in society unions help strike a

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role of unions in society unions help strike a balance between equity, efficiency and voice way to balance property rights vs human rights different systems of labor relation for achieving balance in different countries internationally recognized (but not enforceable) and protected activity Outline of Equity, Efficiency and Voice Effect of Unions of efficiency Dimension Estimated Effect of US Unions
Job satisfaction- union workers are less satisfied, likely due to working conditions Turnover- reduced turnover Productivity- mixed turnover Productivity- mixed evidence Profits- usually reduced profitability Solvency- no effect Those who are less satisfied tend to form unions, therefore, the unionized are less satisfied When a union wages its wages, it harms others who are not unionized because they have a monopoly effect. They refuse to work at the market rate Absolute effect of unions. Threat effect and the supply effect. $15 in the nonunion sector, $20 in the union sector there would be no threat of unions and therefore the overall wage would be $10 creates more competition in the unionized sector if everyone is unionized supply effect. Decreases the price of labor, obscures the relative wage premium for unionization compress the wage structure in firms, top paid and lower paid employees paid less of a gap relying on seniority can be more equitable than relying on discretion of the boss the relative effect of unionization- wages of unions are about 20% higher than their nonunionized counterparts the costs of becoming a union member - union dues, 2-5% of paycheck (one or two weeks) Union differences 2015 chart from slides Unions have an emphasis on seniority, not a lot of room for discretion because it is extremely structured. Therefore, todays unions limit discrimination Dimension Estimated effect of US Unions Collective negotiations Management is required to bargain with a certified union
Grievance procedures Nearly universal presence of formal grievances procedures in union contracts When more people get together, the employees gain a voice Role of Unions in politics- yesterday, the supreme court decided that under the 1 st amendment unions cover 10% of the workplace but vote at a higher rate that the rest of the population and lobby at a greater rate, therefore, they have a lot of influence steps in the organization process two things that make measuring realative wages difficult- -threat effect: drives the nonunionized wages up -supply effect: unions are monopolies so when they unionize they raise the wage. The people that are not in unions have depressed wages less voluntary quits but layoffs increase Union Organization Steps in the organizing process 1. Dissatisfaction in the workplace a. Bad management-employee relationships b. Do not trust management c. They believe management shows little concern for employees d. They dislike their job e. They are dissatisfied with their influence and the workplace f. They believe management is unwilling to share power 2. Get employees to sign authorization card a. Authorizes a vote on unionization b. 30% must sign this c.

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