Companies could lose substantial finances with unions

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Companies could lose substantial finances with unions in the workplace.
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5 Unions in the Workplace In today’s economic deficit it is hard to find jobs if unemployed. When companies have unions it is harder to replace workers with the contracts and protections from the unions. Even more of a difficulty is non-member employees wanting to advance or even keep their job when the company is primarily unionized. As well, qualified potential employees would not be hired because unions can hire less qualified members for fewer wages within their union, and it would hold more prominence than the qualified person. The main reason for job losses in companies with unions, are the unions themselves. Labor unions reduce the number of jobs so that they can increase wages for their members. The rise of these wages affects the company’s profitability, which also reduces investments mentioned earlier and employment in the long-term vision. In a good economy these effects would damage the economy significant, imagine the affect in a weak or bad economy (Krol & Svorny, 2007). States with more union members took considerably longer than those with fewer union members to recover from the 1982 and 1991 recessions. Because of the spike in cost, unions force companies out of business because of the lack of economic resources. There are two acts in Congress that directly affect why people join unions; Employee Free Choice Act and National Labor Relations Act. Employee Free Choice Act legislates a system to allow employees to arrange, join, or contribute to unions. National Labor Relations Act restricts the employers to react to workers in the areas who create labor unions, engage in collective bargaining, and take part in strikes and other forms of concerted activity in support of their demands (Wikipedia, 2012). Taking these legislations into consideration could force workers to join unions, which jeopardizes companies.
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6 No one is sure when the first strike occurred. The word strike was first used in the 1700s. By the 1800s, formal trade societies and guilds began to emerge. To have a strike today workers must have a union, though not necessarily an official union (Grabianowski, 2006). At the most basic level, a strike occurs when workers in the union stop coming to work. Strikes help explain why unions are more powerful than individuals. If an individual did not get a raise and stopped coming to work the employer could terminate him or her, but if a group of workers in a union stop coming to work that hurts the employer. For a strike to occur, the union's leadership must call for a strike action. They will not call for a strike unless the union members have voted for it. It is typically an 80% vote for a strike. If union members strike without leadership approval it is a wildcat strike.
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