The Advantages of Labor Unions for an Organization

by Luke Arthur, Demand Media

Labor unions are organizations in which employees bond together to create a collective voice for negotiations with employers. While some view labor unions as a negative, they actually can have several positive effects on the labor market in general. hey can help both employers and employees, if they are utilized correctly.
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Simpler Negotiations
As an employer, one of the advantages of dealing with a labor union is that it simplifies the negotiations process. When you deal with a labor union, you do not have to negotiate with multiple employees. ,ou simply talk to the head of the labor union and the head of the union speaks for all of the workforce. %y doing this, you can negotiate faster and more efficiently without having to worry about meeting with many different employees.

Employee Satisfaction
Another advantage of dealing with labor unions is that it can improve employee satisfaction. When employees deal with unions, they may be more satisfied because they have a voice to speak to the employer. hey get higher wages on average and better benefits packages. When you meet the needs of the employees better, they will be more satisfied in their -obs and will be willing to work harder for you. his could lead to higher productivity and better .uality production. Related Reading: Are Labor /nions 0ncorporated1

Less Turnover
Another advantage of labor unions for organizations is that they lead to less turnover. When you have a workforce that is comprised of labor union members, they will not leave their -obs as fre.uently. hey have to pay dues to be a part of the union, and they typically do not want to lose their position in the organization. When you have lower levels of turnover, it saves your business money in the long run by not having to train as many new employees.

Easier to Ma e !hanges
%usinesses regularly have to undergo change if they want to stay at the forefront of their industry. When a business has a labor union to work with, they can partner together to facilitate change easier. When the employer knows that change is re.uired, it can disseminate this information to the leadership of the union and the union can then pass the information along to the employees. When everyone is on the same page, it improves the chances of the company getting through the change.

Section 7. Worker Rights

a. Freedom of Association and the Right to Collective Bargaining

The law allows workers, except for essential government employees, which includes police, army, and management-level officials, to form and join independent unions. All unions must e registered either under the !ational "rgani#ation of Trade $nions %!"T$&, or the 'onfederation of Trade $nions. The law allows unions to conduct activities without interference, prohi its antiunion discrimination y an employer, and provides for reinstatement of workers dismissed for union activity, the right to strike, freedom of association, and the right to argain collectively. The government did not always protect these rights. !"T$ officials reported some employers used a recognition agreement to allow union operations at the work place. (a or activists reported government oversight of la or practices was poor and that the )inistry of *ender, (a or, and +ocial ,evelopment was underfunded and understaffed. (a or inspectors were present in only -- of the ../ districts. )ost employers did not give employees written contracts of employment, resulting in lack of jo security and union representation. 0orker organi#ations were independent of the government and political parties. 1owever, four mem ers of the ruling !2) party and one independent held the five seats set aside in parliament for workers. There were instances of government interference in union activity. 3or example, on 4anuary 56, police in 7ampala locked a meeting organi#ed to discuss teachers8 demands for salary increases and improved working conditions. As of +eptem er 56, local media reported .. strikes over low salaries, wages, and poor working conditions. 9olice occasionally arrested persons engaged in demonstrations and strikes or used excessive force to disrupt striking workers. 3or instance, on )ay ., police in 7ampala arrested and later released without charge /. workers8 activists who were demonstrating against the government8s failure to address workers8 rights. Antiunion discrimination occurred in practice, and la or activists accused several companies of preventing employees from joining unions y denying promotions, not renewing work contracts, and sometimes refusing to recogni#e unions. 3or example, !"T$ officials cited numerous companies that resisted trade unions, including telecommunications company )T! $ganda, 9osta $ganda, and all 'hinese and Asian-managed firms. (a or activists reported workers continued to lose their jo s ecause of joining unions in other sectors. !"T$ officials in particular cited )T! $ganda, which threatened to exclude workers who joined unions from the company8s pension fund. 9u lic service unions, including medical staff and teachers, were a le to negotiate their salaries and employment terms through their unions. 1owever, the government fixed salaries for essential government employees, including police, military, and management-level officials. "n August .-, the government inaugurated the !ational !egotiation and 'onsultation 'ouncil, a key step in the push for negotiating space on the salary and welfare of government workers. (a or activists reported some

employers ignored the legal re:uirement to enter into 'ollective ;argaining Agreements %';A& with registered unions. (a or activists also reported some employers resorted to su contracting and outsourcing services or hired workers temporarily in order to avoid ';As. According to !"T$, seven ';As were signed during the year.