Labor unions were initiated to combat the low wages and poor working conditions that were seen in factories and other businesses. In the late 19th century, as the Industrial Revolution stormed the world, farmers began leaving agricultural work behind for what they assumed would be a steadier and better income. When that didn’t happen, a labor movement began among the workers. The idea behind the labor movement was to eliminate the disparity between the workers, who believed they were being treated poorly, and the company owners who were taking advantage of the workers’ need for a job while raking in large amounts in revenue.

In the 20th century, labor unions began to change the way corporations conducted business. The labor unions fought for better wages, and as medical advances began to increase the cost of care, the labor unions insisted on health insurance coverage. They led the charge for the 40-hour work week, overtime pay, and vacation benefits. However, in recent years, labor unions fell out of favor as employers found that labor in Third World countries was pennies on the dollar in hourly wage, even less when the benefits and insurance packages are factored in. Companies began outsourcing jobs, closing down the factories where the labor unions had prospered for decades. Now there are those who claim the labor unions are hurting the American job market.

The Good of Labor Unions

If they don’t do anything else, labor unions look out for the best interests of their members. A union makes sure that the members are receiving a livable wage and that the working conditions of the corporation are satisfactory. Labor unions protect the membership. A contract agreement is drawn up between the union and the corporation, which outlines things such as the amount and frequency of pay increases.

The Bad of Labor Unions

Labor unions tend to be inclusive. Those who choose to join the union gain all the benefits, but it may be at the expense of those who aren’t members. That can cause strife within a company where certain employees, based on their job duties, are offered membership, while other employees have to work in conditions not quite as favorable. Corporations find that having a labor union within the company is not cost effective. Other employee salaries are kept at minimum wage or there are no health benefits due to the high cost of employing labor union members.