Labor Relations

Labor Relations

From child labor to modern day unions, labor relations have been a major deal in the United States especially in the industrial age. Unions and labor relations will be defined while examining the impact on organizations. An organizations performance is impacted by employee relations strategies, policies and practices. Unions used to impact elections and were highly sought after for endorsements of most candidates running for office. Unions have lost their impact and acceptance in recent years. What has caused the decline and will unions regain any relevance in the United States? Labor relations will be vital to future company growth and financial gain. Some companies have to deal with unions while others will have to deal with government regulations and intervention. Concentrating on labor relations will become a specialized function of human resource management.

Definitions

Unions are organizations formed to represent their members' interests in dealing with employers (Noe, L, Gerhart, & Wright, 2004, chap 14). Labor relations emphasize skills managers and union leaders can use to minimize conflict and seek solutions to disagreements (Noe et al., chap 14). From the founding of the first trade union in the United States, unions have gained influence in American society. During the turbulent 60’s and 70’s, unions range of influence was extended by purported associations with organized crime, this helped see a decline in the unions influence entering the 80’s and 90’s. Companies have worked with and without unions to improve workers conditions and pay. Companies today realize that keeping a productive happy employee requires more than high salary, it includes benefits. Employers offer varying benefits but employees determine what makes them happy and want to stay. Employees also decide what is necessary to provide the performance their employer is looking to gain.

Performance

Unions lower productivity of workers. With limitations to workload and work hours written into most contracts employers are forced to maintain levels contracted. If the economy requires more work there has to be a new contract or the company will lose market share. Even with a contract employees that are members of a union are more likely to try to renegotiate the contract based on perceived overwork or weakening economy. Unions can have a positive affect on productivity because workers feel like the have a way of resolving conflicts (Noe et al., 2004, chap 14). Human resource (HR) practices have seen an increase in company performance as stated in many studies (Wright, Gardner, Moynihan, & Allen, 2005, 409); companies are seeing financial gains associated with HR practices.

Relevance

Recently, unions have taken a hit when striking. Professional sports have felt the impact of unions on fan attendance since the players struck. When fans look at the salaries the players earn each year, they wonder why? Most would understand if Wal-Mart workers went on strike, because the perception is they make low wages. When UPS workers went on strike, people chose to discontinue use of UPS. Consumers are more often less sympathetic to striking workers. Depending on how the data is read the conclusion that labor is losing its glory. President Bush was elected twice without major labor union endorsements. On the contrary, labor unions were heavily represented on both sides of the New York mayoral race (Allen, 2005, 36). Employee participation in unions has remained steady