Pros and cons of Labor Unions

Originally, trade unions were self-organized social groups based on common interests. This common interest group is people who work for the same employer, individuals in an industry. The main purpose of a trade union is to negotiate wages, working hours and conditions with employers.

The original intention of trade unions is not to create value for the whole society, but to protect the relatively vulnerable labor groups through social redistribution (reducing the profits of employers and increasing the wages and benefits of workers). In theory, unions boost Labour morale, have a “shock effect” on employers that forces them to improve management practices, and improve communication between workers and employers — all of which improve productivity. That’s why some economists have long argued that the existence of unions is positive for society. The core of their activities is collective bargaining for wages, benefits and working conditions for their members, and negotiating with management on behalf of their members when contracts are breached. Larger unions typically lobby and support candidates at the national and federal levels.

But the existence of unions also carries great risks. First, the departure of the capitalists in the factory and the formation of unions may eventually lead to the closure of the enterprise, which means that the workers will lose their jobs. Since there will always be cheaper labor in the world than theirs, capitalists can’t fire union members at will, but they can just as easily fire a union if they shut down a company. Just like the downfall of Detroit for this reason. Secondly, the union will make the work efficiency of its members low, because some employees can get free money without working, and when some employees do well, there will be no real reward and no return for their efforts. The end result is a vicious circle of union members that reduces the efficiency of the entire company. That’s why I refuse to join an organization with such potential risks. Once a risk occurs, it limits employee promotion and productivity.