In almost every circumstance, workers stand to gain when they unite as a union for collective bargaining. However, the more financial concessions an employer grants workers, the less profit that remains to split between owners or shareholders. Ideally, businesses can maintain a balance between what's good for the workers and their bottom line.
Most businesses with employees are already legally required to carry workers' compensation insurance. This coverage pays for costs related to on-the-job injuries, protecting both parties from financial devastation after an accident.
Should your company support a unionized workforce?
Unionized workers are typically better paid and enjoy more benefits than non-union workers. Unions to protect the interests of employees. On the whole, union workers are happier in their jobs and less subject to discriminatory practices and inequality. Union workers also get better protections for their families, better retirement packages, and more job security.
Some benefits introduced for union workers have even trickled into the mainstream, such as the five-day workweek.
On the other hand, union job protections make it difficult for a company to let a bad employee go. Seniority rules may hold a promising young person back, as promotions often go to those with the most experience. The culture of a union can lead to cronyism, which favors some but excludes others.
Here are a few additional challenges associated with unionizing:
- Members must pay mandatory dues
- Affording union benefits can drive up the cost of producing a product
- Companies may have to outsource jobs if the cost of production rises
- Contract negotiations can get contentious, affecting company culture
So, should companies allow unions? Any entrepreneur motivated solely by profit and control will respond to that question negatively. However, the fact that modern working conditions are much better because of unionization is undeniable.
On the other hand, unionization also has the potential to stifle creativity by holding back younger workers with new ideas. Ultimately the true advantages of unionization vary from industry to industry. However, workers' compensation insurance is a must, regardless of your union status. Find an affordable policy for free using CoverHound!