Labor Relations

Many organizations today face the issues of trade unions and labor relations. Larger corporations are more likely to deal with these issues on a larger more frequent scale as where smaller organizations do not. Defining the difference between unions and labor relations and the impact they have on organizations is one of the first issues this paper will seek to discuss. Next, an examination of how the changes in employee relations strategies, policies, and practices influence organizational performance will be discussed. The last topic for discussion is whether unions are still relevant in the United States. Further reading will discuss these topics and the many aspects they present to both employees and organizations.

Trade unions are “a continuous association of wage-earners for the purpose of maintaining or improving the conditions of their employment” (Trade Union, 2007). Unions are typically formed because employees feel that his or her needs and interests do not get enough consideration from management (Gerhart, Hollenbeck, Wright, and Noe, 2004, pg. 441). Early trade unions often provided a range of benefits to insure members against unemployment, ill health, old age and funeral expenses. Although now those items are usually provided by the state; however, legal advice, representation, and professional training for members is still a major benefit for union members (Trade Union, 2007). Unions are able to operate openly; they may negotiate with the employer over wages and working conditions. Unions can organize strikes and promote legislation favorable to the members or workers interests. “To this end they may pursue campaigns, undertake lobbying, or financially support individual candidates or parties (such as the Labour Party in Britain) for public office” (Trade Union, 2007).

Labor relations look at the relationship between workers and management particularly groups represented by a union (Industrial Relations, 2007). Labor relations can range from levels on the manufacturing floor to national levels such as the National Labor Relations Board (Industrial Relations, 2007). Labor relations must also be able to adapt to changes in the workforce that may deal with technology, economics, or politics. Being able to know what to do if technology takes control over half an organization making jobs obsolete is vital to an organization that may face a situation such as that. How to respond to globalization or knowing what political party holds the power in which the system is dependent upon is vital to labor relations working properly as well (Labor Relations, 2007). "The National Labor Relations Act, NLRA, extends rights to most private sector employees, to their employers, and to unions/labor organizations" (NLRB). An employee may wonder whom exactly the NLRA protects and some may assume that the NLRA only covers unions and the employer; however, those assumptions are not correct. NLRA not only protects unions but it protects groups of two or more workers who seek better wages or working conditions through protected concerted activities without seeking a union (NLRB). An example of a protected concerted activity might be one employee speaking to his/her employer on behalf of him/herself and one or more co-workers about improving workplace conditions (NLRB). However, an employee who works in an at-will state should consult with an attorney before seeking to pursue a case against and employer because the NLRA has a different status among at-will employment (NLRB). The NLRA does protect and employee's right to engage in union support, membership, and activities just as it protects an employee's right not to engage in those activities (NLRB).

Labor relations as well as unions will at times seek alternate ways of forming agreements with employers such as arbitration. Arbitration is “a form of binding dispute resolution, equivalent to litigation in the courts, and entirely distinct from the various forms of non-binding dispute resolution, such as negotiation, mediation, or non-binding determinations by experts” (Arbitration, 2007). There are a number of reasons why arbitration may be chosen as a form of resolution and some of these reasons are because arbitration is usually quicker than other forms of negotiations and arbitration typically costs less especially when union members consider going on strike (Arbitration, 2007). Strikes can cost members thousands