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How can unions be a negative for business owners?

Updated: 8/19/2019
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13y ago

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Unions were quite important after the robber baron turn of the century when auto workers, miners and other large industries were taken advantage by big business denying them fair pay and safe working conditions. Unions today have less to worry about when it comes to workplace safety, unfair labor practices and when you add in the anti monopoly laws you can compete for jobs in other companies. It's the competition part that unions seem to have issue with. A worker, regardless of talent, commitment or work ethic makes the same as any other worker with the same amount of time in the union. Add in collective bargaining, slow downs, wildcat strikes and picket lines you can see why business owners would rather not deal with unions. Getting into public service worker unions like fire, police, state, county or city workers they have held these communities hostage in order to get an advantage in wage and benefit negotiations. The problem here is instead of a private business these large unions are asking for more tax payer money. And in turn unanimously support one political group over another in order to get public service favors. That makes them a political target. Union membership has steadily fallen for decades. One could categorize them as a dying institution but they aren't going without a fight. Another reason why a new company would not want to deal with union bosses.

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Q: How can unions be a negative for business owners?
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How did business owners feel about the formation of labor unions?

Regulating business was un-American Union leaders were anarchists Unions threatened profits.


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The workers went on strike


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Sample Response: Business owners need their workers to effectively run the businesses. Unions represent many of the workers. Therefore, if an owner cannot reach an agreement with a union, the owner knows the business will suffer. ~APEX


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Unions found it hard to fight government -s upported owners. (APEX)


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Why did business owners resist the growth of unions?

Growth in the number of union members was seen as a threat to business owners because as membership increased, so did the level of influence unions could exert on owners when negotiating conditions of service, wage rates etc. Some enlightened owners recognised that unions could provide a platform for building better relationship's between employer and employee and welcomed responsible workers organisations. Over the decades, their power became too strong resulting in unreasonable and unsustainable demands and in the UK in the 1980's the then Thatcher/Tory government sought to curb the excesses and power of the unions with a good deal of success and they no longer have the power they once held. With the arrival of austerity in the UK however, there are signs of renewed interest in the such movements.