Bargain together for getting the best solution



Trade union, also called labor union can be defined as “A labor union is an organization formed by workers in a particular trade, industry, or company for the purpose of improving pay, benefits, and working conditions.” (investopedia, 2022)

Trade unions have a democratic structure and it works as independent unit for representing and negotiating on behalf of working people. Workers have to pay an annual or monthly payment for getting the membership from the labor union. Labor unions started in 18 century during the industrial revolution. (WallStreetMojo, 2022)

Typical labor unions consist of a president, vice president, secretary, treasurer, executive council member and steward. According to the Department of Labor, there are 2053 active labor union associations in Sri Lanka as at 31st of December 2022. (Department of Labor, 2022)

                                                      

Type of Labor unions

      01.   Craft union

This type of union form when all members have a special skill or ability and are in the same industry. They are performing a specific kind of task like electricians, carpenters or printers.

      02.   Industrial union

People who all work within the same industry made up this type of union. They are representing one sector within the economy. Most of the time they are working for improving the health and safety condition within the workplace. (Automobile workers, steel workers, apparel sector workers, production workers)

      03.   Public service union

The main objective of this type of union is, to serve the general public. This consists of the same or similar job type within a specific public service industry and they work as a voluntary basis. National-level associations can be categorized under this.

      04.   Federations

Most of the small or localized unions come together and create a federation.

 

Benefits of working with a recognized labor union

      01.   Build trust among the workforce

Unions make a platform for discussion between workers and employers. Since most of the problems can be identified and resolved quickly and fairly. When there is having a work-related issue company can consider the labor union as the single contact point. So that company can negotiate terms and conditions with the labor union rather than contacting each worker individually. By solving the identified issue without taking much time, the company can improve workers’ productivity and reduce internal conflicts.

      02.   Ensuring the workplace safe

If the working environment has poor working conditions, not following safety standards, sexual harassment, bullying and long working hours that may affect the employee’s performance and productivity. Union representatives can make complaints about those and can pressure the employer to take favorable actions without delay.

      03.   Improve staff retention

Labor unions always negotiate with employers to find out solutions that meet business needs while ensuring that workers are treated fairly. If labor unions take the leadership to improve working conditions, it will motivate employees to retain with the company and work more productively. 

      04.   Fight against discriminations

Labor unions actively fight against discrimination as well as unjust practices and help to promote equal opportunities in the workplace. They are negotiating with employers about minimum wages, maximum working time, paid holidays and equal pay for work of equal value. If an employee terminates from the company without having any fair reason he or she can discuss it with the labor union in the company. Most labor unions are concerning whether anti-discrimination policies are properly implemented or not. 

      05.   Help to make better business decisions

Unions provide more information regarding workplace issues. The company can use this information to make better decisions about terms and conditions as well as management practices. 

      06.   Legal support

Labor unions will actively help workers who are facing problems with employment contracts, harassment, redundancy, pensions or discrimination. If there is a grievances union representatives can give expert advice, support and representation from starting point to the end. 

      07.   Save Money

Early identification of the work-related problem is very important and it will lead to significant savings. If the identified problems didn’t solve immediately that may affect employees’ mental and physical health. Then they will get sick and apply for sick leave, medical claims and sometimes request for resign also.

      08.   Increase productivity

Unions lead to build a healthier workplace and they take the lead in resolving grievances. If the workers feel that they are in a healthier workplace their motivation and performance will increase. They will utilize their KAS (knowledge, attitude and skills) much better to achieve organizational objectives.

 

Collective bargaining


Collective bargaining takes place between organization management and labor union representatives. This is initiated when employee contracts are up for renewal or employees need to make changes in existing contracts or workplaces. These changes may include working conditions, payment changes, working hours, leaves and other benefits.

These are the steps in collective bargaining,

  1. Identify the issue
  2. Negotiations
  3. Coming to a tentative agreement
  4. Accepting the agreement
  5. Administering the agreement   

To get a further understanding of labor unions please watch the following video.


                                                                                                                                        (Alux.com, 2021)


Reference

Alux.com (2021) 15 Things You Didn’t Know About Labor Unions [online video] Available at: https://www.youtube.com/watch?v=7xTK8_1L6Uw [Accessed 15.04.2023]

Department of Labor (2022) Active Trade Union List as at 31.12.2022. [online] Available at: https://labourdept.gov.lk/index.php?option=com_content&view=article&id=338&Itemid=94&lang=en [Accessed 15.04.2023]

Investopedia (2022) Labor Union: Definition, History, and Examples. [online] Available at: https://www.investopedia.com/terms/l/labor-union.asp [Accessed 15.04.2023]

WallStreetMojo (2022) Labor Union. [online] Available at: https://www.wallstreetmojo.com/labor-union/ [Accessed 15.04.2023]

 

 

Comments

  1. As much as employees benifit from unions, it is also has a down fall when it comes to certain union actions speacialy in the essential services sector as strike and work to rule options are taken to benifit employees but overall the public has to pay the price. And also certain steps might be beneficial for personal reasons ,in the long run having incapable and unskilled workers getting promoted to higher position for personal gain. Yes can agree to certain actions that unions carry out to safeguard workers rights and pay cuts and in situations like when the leadership is more autocratic,where certain rights of the labour force need to be protected

    ReplyDelete
  2. In labor-management interactions, where management and labor unions negotiate and talk about the terms and circumstances of employment, collective bargaining is a beneficial practice. It may result in better labor relations, better working conditions, stronger employee morale, and greater flexibility. But it must be done in good faith and with a readiness to make concessions. A breakdown in negotiations and possibly damaging outcomes for both management and labor unions might result from either party approaching bargaining with a combative or rigid mindset. Good attempt Rangana.

    ReplyDelete
  3. the impact of labor unions on businesses can be complex and depends on the specific circumstances of each case. While labor unions can bring benefits to workers, they can also present challenges for businesses that need to balance labor costs with other business priorities such as profitability and competitiveness. Well done.

    ReplyDelete
  4. Women's and workers of color's salary inequalities are lessened thanks to unions. Compared to non-union employees, union members enjoy better job safety safeguards, more generous paid time off, and a greater sense of security when exercising their legal rights at work.

    Well done !

    ReplyDelete
  5. The article has been created under a detailed analysis after studying the facts well about the subject. Well done...!!

    ReplyDelete

Post a Comment

Popular posts from this blog

Let's work as a team