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Strike a Balance

When thinking about labor unions, the thoughts of “right-to-work” and paying a “fair share” flood the mind. According to an article by Jana Kasperkevic on Marketplace.org, right-to-work laws prohibit employers and labor unions from requiring payment for union dues from employees as a condition of employment. This means that in states that have enacted right-to-work laws employees can opt out from joining unions and paying dues if they choose to. She goes on to say that to find a middle ground, unions had set up “non-member dues” meant to cover collective bargaining, negotiating, and enforcing a union contract cost. This reminds me of the free rider problem mentioned in economics classes where individuals benefit from a public good without contributing to its cost. In this scenario, the “public good” is all the benefits brought by the union such as improved wages and benefits, reasonable working conditions, and work hours, breaks and vacations, and improved rules on discipline and termination.

For my first job, as an Alpha-Beta grocery bagger, I had to join a union. At the time, I did not know what a union was, why I had to join it, and why they were taking money out of my check. Since then, I have come to realize that while there has been some troubled history regarding labor unions, a lot of benefits we take for granted have come due to the existence of unions. According to UFCW1500.org, worker strikes created enough political pressure to pass the Fair Labor Standards Act, which created the framework to include leisure time during the week for employees, which we know today as the weekend. They go on to mention union contributions to gaining other benefits for employees such as a 40-hour workweek, 8-hour workday, unemployment benefits, workers’ compensation, employer-based health coverage, and the Family and Medical Leave Act. According to the U.S. Department of Treasury website in a report released on August 28, 2023, they highlighted evidence showing that unions served to strengthen the middle class and grow the economy. They also mention how having unions had a spillover effect which forced non-unionized firms to increase benefits and wages to attract employees because they were competing with unionized firms for employees in the human capital market.

While I worked at a unionized firm only for about a year in my working life, I would not be opposed to being a member of a union if any type of future job I may join or do required it, or offered it, or if it was an option. Unions help empower employees and even the balance of powers regarding negotiations regarding wages and other benefits with employers. Would I think differently if my future job were in management and I was not allowed to be a part of the union, but my subordinates were part of the union? No, I do not think I would. Unions are beneficial for many employees and help society as a whole. They bring accountability to a firm’s management which should act responsibly and fair in the first place. I believe that when employees do better, the firms do better.

References:

Kasperkevic, J. (2019, April 29). Why unions are so worried about right-to-work laws. Marketplace. https://www.marketplace.org/2017/02/24/push-nationwide-right-work-law-could-weaken-unions/

Labor Unions and the U.S. economy. U.S. Department of the Treasury. (2023, October 26). https://home.treasury.gov/news/featured-stories/labor-unions-and-the-us-economy

What unions have done for you – UFCW local 1500. UFCW Local1500. (2023, July 31). https://www.ufcw1500.org/what-unions-have-done-for-you/

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