Influence Of 'Trade Unions' in Organizations

'Trade unions' are associations of workers or organization formed together by employees to achieve their demands for better conditions at their work atmosphere while the Fundamental purpose of a Trade unions is to protect the interests of their employees. Trade union formed in accordance with the law of their country shall have the privileges given by the law of trade union. CIPD (2017) described 'Trade Unions' as independent collective bodies which are representing the interests of workers. Freeman & Medoff (1984) says that independent trade unions are the most effective vehicle for employee voice, as a source of guidance to challenge the unilateral power of management control.

According to Armstrong (2012) Trade unions have two unique roles which can be identified,

1. To secure through collective bargaining, improved terms and conditions for their members.

2. To provide protection, support and advice to their members as individual employees. 

KEY FEATURES OF TRADE UNIONS-

• working with management to help resolve workplace issues
• being an advocate for employees
• ensuring employers are meeting their minimum obligations
• looking into suspected breaches of:
  • workplace laws
  • discrimination laws
  • workplace safety laws. 

The Sri Lankan Constitution grants as a fundamental right for every person to join a trade union, while the Trade Union Ordinance permits any seven people to form such an organization. In Sri Lanka, there are 2,074 registered trade unions, of which 54.5% are in the public sector, 27.5% in public corporations and 18% in the private sector. The number of members covered by the trade unions amount to 9.5%of the total workforce of Sri Lanka. The Employers’ Federation of Ceylon (EFC) was established in 1929 as an organization of employers dealing with labour and social issues in Sri Lanka. It is the principal organization of employers, promoting employer interests at national level, especially focusing on industrial relations and labour law.

ADVANTAGES AND DISADAVANTAGES OF HAVING TRADE UNION IN AN ORGANIZATION

ADVANTAGES-                                                 

1. Unions have the power to negotiate higher wages, improved benefits and better working conditions for their employees.

2. Employees are guaranteed union advocacy in the workplace. The union has the power to determine disciplinary actions, including termination, which generally equates to greater job security.

3. A union gives employees power through a collective voice. Employers have to negotiate with unions in order to maintain productivity. The right to strike is the ultimate show of worker galvanization

DISADVANTAGES-

1.Union negotiations can lead to wages and other associated costs being boosted to unreasonably high levels. It can raise prices on the goods or services it provides.  It can reduce the number of new hire employees, leaving an insufficient workforce to manage the overall workload.

2.Union protection makes it difficult for employers to discipline, terminate or even promote employees. There is also a cronyism aspect to unions. Unions can decide whom they accept into their fold. Therefore, membership in many unions becomes less about skill and competency and more about networking.

3.The necessary tension between employers and employees resulting from labor unions is often counterproductive.

4.Unionized employees are bound to follow majority rule regarding strikes. This leads to loss of income for the employees and loss of profit for the organization too.

CONCLUSION-

Trade unions are a brilliant way to balance the power between employers and employees. Union workers enjoy number advantages, ranging from the tangible benefit of higher wages to the personal satisfaction of knowing their voices are recognized in the workplace. However, there are advantages as well as disadvantages of having Trade Unions in organizations which can give positive and negative results for both employer and employees. 

references-

Armstrong.M (2012) 12th edition, Handbook of Human Resource Management Practice. 

IvyPanda. (2019) 'Unitarist and Pluralist Managerial Perspectives'. 23 December. (Accessed: 28 October 2020).

International Lobour Organization in Sri Lanka

https://www.ilo.org/colombo/info/lang--en/index.htm

Pors and Cons of Unions by Joe Weinlick, 2015

https://www.nexxt.com/articles/pros-and-cons-of-unions-16881-article.html