Labor Unions in Organisations

Question: Describe about the Labor Unions in Organisations. Answer: Introduction The labour unions are essential in the organizations as they help to bind the employees together. They act as a collective voice for the purpose of negotiations from an employees point of view. The Government has recently focused on the non-union aspects while formulating the agreements. This has deprived the employees their voice while dealing with the management or the government. Discussion Australia has witnessed a moderately high rate of unemployment in the recent past (Hoffmann Lemieux, 2014). The Australian businesses are dominated by loss of jobs and increasing number of plant closures. The economy requires the generation of new jobs, however, the Australian economy is perceived to be an expensive country. This implies that there are excessive regulations in the country that acts as an obstacle for the new firms. It is also observed that the deadline of the projects has not been adhered to and there was high delay in the completion of the projects (Hoffmann Lemieux, 2014). The industrial relation laws is creating barriers for the smooth functioning of the business. The Greenfield Agreement formulated by the Fair Work Commission takes place between a new employer and the union, in case the organization does not have any employees (Fwc.gov.au, 2016). These types of agreements allow the involvement of a union. The Australian economy is characterized by a huge involv ement of the labor union. 18% of the employees in Australia are the members of the labour union, which has increased the bargaining capability on the new projects (Fwc.gov.au, 2016). The union members are in a position to delay the onset of the new projects. The union members engage in longer negotiation sessions that increase the cost of the projects as well as inability to adhere to the deadlines. They often demand exorbitant rates or unsustainable work conditions, which the employers are bound to follow (Hoffmann Lemieux, 2014). These factors have forced the Government to promote non-union forms of the contract agreements. The absence of the labor unions of the employees has certain implications on the employees. The employees are unable to communicate their concerns to the management (Bray Waring Cooper, 2014, pp. 295-298). They are also unable to make negotiations on certain important issues. There is a decrease in the employee satisfaction rates as their concerns remain unresolved. There are often issues with the compensation structure which can be addressed only by a union. The unhappy employees are more prone to leave the organization and hence there is an increased attrition rate in the organization (Berg et al., 2013). The increased turnover rate also implies an increase in the operational expenses of the company. There is an increase in the unfair dismissal of the employees which acts as a demotivating factor for the other employees (Bray Waring Cooper, 2014, pp. 317-319). There is absence of the collective strength of the employees which reduces their productivity levels. Conclusion The labor unions should be dealt properly so that there is a mutual benefit of both the parties. The organization and the employees should benefit from the policies of the Government. The labor union has both positive as well as negative impacts, which needs to be managed well. References Berg, P., Kossek, E. E., Baird, M., Block, R. N. (2013). Collective bargaining and public policy: Pathways to work-family policy adoption in Australia and the United States.European Management Journal,31(5), 495-504. Bray, M., Waring, P. Cooper, R. (2014) Employment Relations: Theory and Practice. 3rd ed. Sydney: McGraw-Hill Fair Work Commission | Australia's national workplace relations tribunal. (2016).Fair Work Commission. Retrieved 16 September 2016, from https://www.fwc.gov.au Hoffmann, F., Lemieux, T. (2014).Unemployment in the Great Recession: a comparison of Germany, Canada and the United States(No. w20694). National Bureau of Economic Research.