Union or unionized companies are businesses that hire employees that belong to a union, a legal organization that represents the employees and manages, at least in part, the hiring process. There are different types of unions, based on the industries they work within, and companies that work with unions have several common qualities that differentiate them from businesses that do not use unions.
Rules and Guidelines
Unions are responsible for creating many different rules in the industries they are a part of. Some of these rules apply to employees and the training they must go through, but many also apply to the companies that hire union workers. These companies must provide workplaces that promote worker safety and health. Of course, good companies will work toward these aims anyway, and state or federal governments have their own safety rules. But unions often add extra guidelines to make sure that workers will not be mistreated or put in danger.
Compensation
Union workers, on average, are paid more than employees who are not part of unions. This means that union companies must expect to pay more in compensation. Many companies balance this by offering fewer benefits to employees, but only up to a point; most unions also require companies to offer certain benefits, such as health insurance. This is one reason that unions are popular among employees, and it is also a key point of negotiation between companies and unions.
Pricing
In general, companies that work with unions have higher payroll costs, whether from extra compensation or simply the costs of negotiation and meeting union guidelines. But companies want to make profits for shareholders and business expansion, so union companies often incorporate strategies to offset these extra costs. Often they raise prices on their services or products, or cut costs throughout departments. This can lead to higher prices for consumers, but it can also help foster company innovation and efficiency.
Representation
Companies that work with unions also have a detailed representation policy. Unions use their representatives to negotiate for higher wages or other changes. The companies involved in unionized industries create representation plans for themselves as well. Often state and federal laws outline this representation process so both sides can negotiate without bias or confusion. Companies without unions can also have representation policies, but they are rarely maintained as strictly.
References
- U.S. Department of Labor: Inspecting Nonunion Models for Employee Voice
- Heritage Foundation: What Unions Do: How Labor Unions Affect Jobs and the Economy
- Labor Notes. "Are Industrial Unions Better than Craft? Not Always." Accessed Mar. 6, 2020.
- Union Plus. "A Brief History of Unions." Accessed Mar. 6, 2020.
- Bureau of Labor Statistic. "Union Members Summary." Accessed Mar. 6, 2020.
- Maurer School of Law: Indiana University. "Undermining or Promoting Democratic Government?: An Economic and Empirical Analysis of the Two Views of Public Sector Collective Bargaining in American Law," Page 416. Accessed Mar. 6, 2020.
- University of Maryland. "A Living Wage." Accessed Mar. 6, 2020.
- Baldwin Wallace University. "Local Union Strength’s Effects on Individual Employment Outcomes," Page 7. Accessed Mar. 6, 2020.
- AFL-CIO. "Tariffs and Trade Are a Means, Not an End." Accessed Mar. 6, 2020.
- United States House of Representatives. "The Clayton Antitrust Act." Accessed Mar. 6, 2020.
- Joint Information Systems Committee. "Miners' Strike 1984-1985." Accessed Mar. 6, 2020.
- Bureau of Labor Statistics. "Differences Between Union and Nonunion Compensation, 2001–2011," Page 16. Accessed Mar. 6, 2020.
- National Labor Relations Board. "Union Dues." Accessed Mar. 6, 2020.
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Tyler Lacoma has worked as a writer and editor for several years after graduating from George Fox University with a degree in business management and writing/literature. He works on business and technology topics for clients such as Obsessable, EBSCO, Drop.io, The TAC Group, Anaxos, Dynamic Page Solutions and others, specializing in ecology, marketing and modern trends.