Are unions neccessary in today's free enterprise system?

Question

Why or why not?

Answer 1

Don't mix apples & oranges. There is a difference between "Service Unions" and traditional Full Referral Trades Unions. Not sure I completely agree with "service unions", but I am VERY pro traditional Unions.

Profit is the goal of free enterprise (Capitalism). In order to have greater profit, you have to reduce your costs. Labor is one cost that is often looked at along with the associated costs of Safety.

First - Because of their Unions, workers have the protection of a larger voice advocating their rights under Employment Laws, OSHA standards, etc. If this were a Utopian world and businesses didn't abuse their employees, workers wouldn't need a Union to stand up for their rights. But, as we all know this isn't utopia and businesses concerned with their bottom line are all too willing exploit their workers.

Second - A majority of Skilled Trade workers like Boilermakers, Ironworkers, Pipefitters, etc tend to change employers OFTEN if they are field hands. They are Contract Labor; they are never with a company long enough to get health benefits or retirement. Belonging to a Union allows these people to have health care, and a pension. When they get too old, die, or health is so deteriorated from their working conditions they have their Union benefits INSTEAD of welfare or being homeless. Also, companies don't have to hold & manage the accounts (they just pay into them during the term of employment); the Union takes on those costs.

Third - There are many benefits to having Union workers: tested competency, training, contracts that protect worker & employer, a central voice to deal with if there is a problem (you talk to the Hall), and an almost unlimited pool of workers to draw from for long term or short term. If you're honest and fair with your employees you probably share the same goals as their Union. Training & Competency costs are typically assumed by the Union.

Fourth - Common myth that Unions protect and reward "bad" employees. Contractors still have the power to get rid of employees, they just have to have CAUSE (like inability to do the work instead of just not liking the person). Most of the Management for the Contractors that I know have been hands that have proven their ability to work, plan, and lead. The best ones know where to put a guy to get the most out of him. That takes actually having experience with the work, not just some management classes.

Answer 2

Unions have, for the most part, become ineffective, largely because they have built a fat bureaucracy at least as bad as that of large corporations.

That said, the THREAT of unionization is definitely necessary, because, unfortunately, there will always be some ownership/management which will be exploitive in the extreme if not checked.

Answer 3

This was already a free enterprise system when the unions were formed. ~

Answer 4

Unions inevitably undermine competitiveness because they often demand that companies consider seniority over worker competency when making promotions and raises. Effectively, unions protect incompetent workers at the expense of able ones and in the process create major dislocations and inefficiencies. It's no surprise union membership levels are at their lowest in decades.