Advantages of trade unions to employers 

Trade unions and employers have always pitted partners with common and conflicting interests against each other. Unions want to negotiate the best wages and benefits for their members, and employers want employee productivity and profits. These goals are not always mutually exclusive. Employers may feel that unions will always hold back business, but unions provide certain benefits to the company. In this article we explore for you What are the benefits of trade unions to employees and advantages of trade unions to employers.

Advantages of trade unions to employers

Some employers would rather deal directly with employees or elected representatives without trade union involvement. But, being recognized and working closely with the union has many advantages and the following are some of the advantages;

Single Point of Contact

Having a single point of contact for negotiating workers’ working conditions is easier than dealing with workers individually.

However, agreeing to this style of collective bargaining requires certain information to be disclosed to the union for collective bargaining purposes.

Employee Involvement

When negotiating working conditions and discussing workplace issues with recognized unions:

Employees may feel more involved in how the company operates. They can contribute to the overall operation of the business.

Can foster employee trust and commitment hence, their productivity at the workplace is likely to be enhanced.

Labor Relations Experience

Trade unions represent not only your company’s workers but many other workers in similar affiliates. As such, they may have a broader view of many issues affecting organizations.

READ: Importance of SWOT analysis in strategic management

Trade union representatives with industrial relations experience are a particularly useful source of legal and best practice advice on personnel and labor law matters. This experience is especially useful during difficult times, such as planned mass layoffs or business transitions.

You need to show trade union representatives that you are willing to lend a listening ear to your employees’ concerns, you can get your message across to union members. Even unpopular decisions are likely to be more acceptable to employees if you can convince yourself and your union that changes are necessary for the continued health of the company.

Information and advice from experienced union representatives, along with input from workers, can also help you make more informed business decisions in general such as shift schedules or the type of equipment to invest in.

Predictable Cost

Employment contracts allow employers to more accurately predict future operating costs over a period of time. This makes it much easier for employers to control costs, develop product pricing strategies, plan for expansion, and invest in new product development.

Employers will have lower employee turnover and unions will have the peace of mind that more workers will be available when needed. Contract negotiations with one party, the union, are much easier than negotiating wages and job descriptions with individual workers.

Stable Workforce

Unionized employers have a stable and well-trained workforce. Trade unions often have programs to train workers in their professions and relieve employers of the costs of training inexperienced workers. Well-trained employees create better and safer working conditions. In return, employers lose fewer days due to work-related injuries and illnesses which is why Advantages of trade unions to employers are important to take note of.

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