Are Unions Good or Bad?

Unions are in the headlines lately featuring an all-star cast with big names like Starbucks and Amazon.

After a 30 year career in HR, I’ve worked both in and out of union environments.?Since I’m retired I don’t have a dog in the hunt, so following is my no bull summary of the realities of labor relations — pro, con and indifferent.

Spoiler alert:?the answer to the headline question (Are Unions Good or Bad?) is: yes and no, and actually it’s the wrong question.

Labor History vs. Today’s Environment

When unions initially took hold in the U.S, the work environment during the Industrial Revolution created dangerous work conditions and low pay.?These issues were compounded by situations where many workers had few alternative employment options.?Management had most of the cards and often used those cards to the disadvantage of workers.

The work environment today is different. OSHA regulations and other Federal and state laws provide an effective workplace safety net.?

Also today there are more job openings than employees, and that has shifted the balance of power significantly.?There are plenty of employment options if workers want to chase more money or different working conditions.?

Today workers also enjoy loads of transparency about wage rates, corporate cultures, and company leadership though sources like Glassdoor. This information further empowers workers to make wise shopping decisions when it comes to choosing an employer, and it puts pressure on management to constantly focus on their treatment of employees.

Motivations, Idealism and BORING Contracts

So with that backdrop, what is the role of unions today and are they needed in places like Amazon and Starbucks?

Here are four important realities to understand when looking at labor relations:

1. Let’s start with a reminder that both unions and corporations are run by leaders who are charged with the growth and prosperity of the organizations they run.?Also, like all workers, these leaders expect to be compensated for their work.?None of this is good or bad per se, but it’s important to remember that union and company leaders’ motivations are not always focused solely on what is in the best interest of workers.
2. There is much idealism in the early phases of union organizing…camaraderie, unification around a common cause, the hope of a better tomorrow, etc.?This idealism is infectious, exciting and galvanizing, but there is much more to labor relations than idealistic goals.?
3. Ultimately unionization comes down to a contract —a legal contract.?And nothing much happens within labor relations until a contract gets ratified.?Like most contracts, union contracts are often long, confusing and full of language written by lawyers.?Contracts also get written during formal negotiation processes that can be arduous and contentious. There is much give and take during this process, and rarely do both sides get everything they'd hoped for.
4. Both the formation of and continuation of unions are based on a perceived disconnect between what workers want and what management provides. For example, workers want a different pay scheme, employees want different working conditions, etc. — and a union convinces employees it can bridge this gap. Sometimes unions do solve these issues, sometimes they don’t.?

What Happens if Union-Management Disagreements Fade?

What happens if that worker-management disagreement or gap is resolved??For example, if wages are adjusted to a level acceptable to workers, then is the union still necessary??The answer is maybe if there is some new issue that needs resolution.

If a union is truly effective at solving employee-management disconnects, does it work itself out of a job??Or is there some other issue — real or perceived — that must be dealt with??And if so, is there a motivation to create new problems in order to promulgate the need for a union??These are important questions for workers to keep in mind.

Ultimately, all of labor relations occurs in a business setting filled with business transactions. In other words, it’s a business issue on both sides, not an idealistic struggle.?Both the company and the union want to thrive, and that requires money, success and growth for both organizations.

Are unions good or bad??

There are as many answers to that questions are there are companies that might or might not be organized.?As employees consider their options, they should first and foremost take an honest look at the labor relations environment — both the idealistic excitement and the business-like realities of negotiation, contracts and long-term survival.?