RESOURCE ALLOCATION

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RESOURCE ALLOCATION

ResourceAllocation

LaborUnions

Laborunions play a significant role in the American economy. They arelegal entities that represent the interests of employees. Theirprimary functions involve collectively bargaining for the welfare andbenefits of the workers. They have a huge influence on the workingconditions, benefits, remunerations, and rights in workplaces. Allthe unions in the United States, conglomerate into one umbrella body,the AFL-CIO. Based on the article “Do labor unions have a future inthe United States?” by Freeman and Hilbrich (2013), labororganizations protect the interest of the workers and therefore playa vital role in the economy.

Accordingto Freeman and Hilbrich (2013), workers join labor unions becausethey have shared interests, which can be pursued collectively. Someof these interests include conditions in the workplaces as well aspolicies adopted by employers related to benefits and remuneration.These views are supported by Rosenfeld and Kleykamp (2012) who notedthat there are an increased number of African American workers in theprivate sector who are joining these organizations. The trend isexplained by the conviction that the labor unions will protect theirinterest and shield them from discrimination in wages. I agree withthe arguments of both authors.

Secondly,Freeman and Hilbrich (2013) assert that there are several benefitsaccrued by workers from labor unions. The invariable gains that areassociated with unionization are better benefits, remunerations, andworking conditions. Also, the problems affecting workers can reachthe management. As a result, there is a better relationship betweenthe employee and employer. This is supported by the finding of asurvey by Long (2013), which established that unionized workers earnhigher salaries compared to non-members. They also have betternon-monetary benefits, such as insurance cover as well as paidholidays and leaves. I also have the opinion that these organizationsare beneficial to the labor force.

Thethird point argued by Freeman and Hilbrich (2013) is that manyworkers are not members of labor unions because of the cost and risksassociated with engaging in activities that are not supported orfavored by the employer. Although it is illegal for the management todiscriminate workers due to involvement in unions’ activities, thelaw does not adequately protect them. The argument is supported byTrottman (2015) who noted that many companies continue to violate therelevant labor regulations. There are a large number of businessentities which do not support labor unions. They adopt businessmodels such as employing temporary workers to circumvent provisionsof the law. I agree with the fact that employers have a tremendousinfluence on the ability of their employees to join unions.

Laborunions play a leading role in the protection of workers’ interestsand improving their welfare. Therefore, they are useful in theAmerican economy. The article by Freeman and Hilbrich (2013) gives anoutstanding insight on the significance of the labor movements.

References

Freeman,R. B. &amp Hilbrich, K. (2013). Do labor unions have a future in theUnited States?. In Theeconomics of inequality, poverty, and discrimination in the 21stCentury,ed.Robert , S. R. Santa Barbara, CA: Praeger.https://dash.harvard.edu/bitstream/handle/1/10488702/15855239.pdf?sequence=2

Long,G. (2013). Differences between union and nonunion compensation,2001–2011. MonthlyLabor Review.April 2013, 16-24. http://www.bls.gov/opub/mlr/2013/04/art2full.pdf

Rosenfeld,J. &amp Klerykamp, M. (2012). Organized Labor and Racial WageInequality in the United States. AmericanJournal of Sociology,117(5): 1460–1502.http://www.ncbi.nlm.nih.gov/pmc/articles/PMC4300995/

Trottman,M. (2015). RulingClears Way for Unions Fast-food, construction to feel effects oflabor board decision on temp and contract workers.http://www.wsj.com/articles/labor-board-ruling-puts-more-companies-on-the-hook-for-temporary-workers-1440704018