In the years since we have had reason to question the truth of this conclusion. Why did unionization play a significant role in the automobile industry crisis?
How did unions figure into the Hostess crisis that laid off over 18, workers? The additional costs are real. Unions need new members and younger workers to support retiring workers. These estimates do not include wages and benefits but do include items such as:. The EPF concluded that, unless the unionized company could sell their product at a higher price or other cost savings could be attained, the unionized company is likely to see 14 percent less in profits per labor hour than their non-union competitor.
Bergeron noted that the cost of operating a unionized organization is estimated to be 25 to 35 percent higher than a union-free organization.
Bergeron goes on to point out that unionized organizations lead to more extensive human resources staff, increased legal counsel, increased involvement with regulatory agencies, loss of flexibility, and increased labor costs due to rules on overtime, grievances, and arbitration processing and many other requirements.
Does the influence of unions in the political arena in the United States have a negative impact on corporate value? If so, do corporations spend more than they would otherwise to try and offset union influence? The conclusion was that labor unions do have a negative effect on firm value through the political channel lobbying paid for with union dues , forcing corporations to make more political contributions to stop the potential damage.
This is particularly relevant today as the pro-union Biden administration and House of Representatives push for laws like the PRO Act , making it easier for employees, gig workers , and supervisors to join unions.
With extensive operational costs and potential loss of market value, organizations must be diligent in their strategies to avoid unionization. An integral part of any successful union avoidance strategy is communication with employees. Employers need to provide useful information. In short, employees need to see current, relevant factual information. They need to know about the things that can affect them, and they need to know that upper management… is aware of the challenges they face on a daily basis.
The Library of Economics and Liberty points out that economists studying unions analyze them as cartels that restrict labor supply to force wages above the competitive levels. Think of apprenticeship programs for the trades. They limit the supply of labor. Once a union wins an election, they have monopoly power to represent all employees. Unions get their monopolistic power from government policy and laws that protect them from things like antitrust laws and force employers to make their property available for union use.
When employers face increased costs and are forced to pay higher wages, they inevitably hire fewer workers. Given all the factors working in favor of unions, now is the time for companies to embrace the new Proactive Era and take measures to make sure employees understand the value of their signature and their voice. Union dues are not accounted for in this study, but does any of that matter if the company — or entire industry — collapses under the strain?
The differences in the cost of unionization to a company are significant when annualized. Union organizers and supporters may quote numbers like these and point to the fact that non-union workers have median weekly earnings that are 84 percent of the earnings for union workers. They cherry-pick facts, leaving out a large piece of the total picture. Back before , most companies lived in the Reactive Era, only talking about unions — and investing in remaining union-free — when there was an active organizing campaign.
But constant fire-fighting was exhausting, and we all realized we needed to get out in front of union activity. As we worked diligently to understand what employees were thinking, the last two decades have been characterized as the Engagement Era. Positive employee relations was really coming into its own, and the cost of preventing unionization shifted to investments in avenues for campaign readiness, feedback, input, and so many employee surveys.
What are typical union dues? When do I pay dues? How are dues typically paid? Agricultural workers paying union dues in Tabor, Oklahoma. Care of: Library of Congress What do dues pay for?
How do I see what my union is spending money on? Care of: PSC Staff. Why are dues worth it? Relationship between declining union membership and rising income inequality. Care of: Economic Policy Institute. Union Structure. Publicizing your union goals, updates, and more to the public allows you to make inroads with communities involved in the labor movement and build solidarity.
About NLRB. National Labor Relations Board. View Your Dashboard. Union dues.
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