¶ … Senior Management
MEMO to Senior Management:
What are the differences in operating a union-free workplace vs. A unionized workplace?
Here is some background on the issue. A view that many observers express is that unions tend to raise "non-union wages" (Waschik, et al., 2010). The way the argument goes is that when there is a union shop, wages go up. Hence, non-union companies raise their salaries as well to complete with union shops (Waschik, 263). Also, the scenario includes this suggestion: if "production-line workers" get raises thanks to the union, the company will then be obliged to raise the wages of "non-union management" in order to continue their wage differential between the workers and management (Waschik, 263).
There is a rebuttal to those suggestions: market forces have not been taken into account, Waschik explains. When unions raise wages, it causes companies to lay some workers off, and those workers that have been laid off will now search for jobs in non-union houses, which in turn will drive down wages in non-union shops (Waschik, 263). The supply and demand dynamic is supposedly at work here. Meanwhile, when there is a threat of a union coming in, some companies will raise their wages to discourage their employees from organizing for a union to come in (Waschik, 263).
So if this company is very adverse to a union coming in, raising wages and improving working conditions may be the best way to ward off the threat of a union. If the employees are happy and are pair fair wages, why would they want...
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