Introduction

Labor unions mean Legalized organized an association of workers in profession or trade

formed to protect and ensure that workers rights and interest are not violated. Their activity
currently centers on collective bargain over benefits, wages and safe working conditions for their
members and representing their members where there is a dispute with management. In the
United States there are many labor unions all aligned to the tow larger umbrella organization:
Change to Win Federation and the American Federation of Labor-Congress of Industrial
Organizations (AFL-CIO).
The unions efficiently operate when the economy of a country is well perfuming
otherwise with factors like recession their practical working is significantly affected. During
periods when the economy is poorly performing like the great recession of 2009 labor unions
have petite to do with influencing corporation to increase wages for their worker (Travor &
Kimberly, 2008). At this level of decline, economic retrenchment occur in many organization and
many people would prefer to work at lower wages than be laid off.
Impacts of recession on the unions ability to strike win concession from
corporate management
Among the core functions of labor unions is the collective bargaining power of
the workers who are in the union. Collective bargaining power is the process where
there are negotiations between employees either personally or through
representatives and employers aimed at agreeing on the regulation of working
conditions. During these collective bargains, workers interests are presented before
the employer through the labor union to which employees belong (Travor &

Kimberly, 2008). It involves the establishment of wage scales, training, working

hours, health and safety and rights for participation in company affairs.
During the recession, however, this is a difficult task as the companies are
facing low incomes. They sometimes tend to lay off workers, and when there is an
agreement to maintain the number of employees, wage cut is the optimal decision
for firms (Chen et al., 2011). Labor unions are therefore unable to enforce some of
the workers interests on corporations.
The ability to strike and gain a concession from employers get undercut
during the recession due to the low performance of the economy. During the
recession, firms and other organizations face a rapid drop in their profit margins
leading to stagnation or during severe conditions losses may occur. Every business
has a profitability objective and when cases of failures become identified the
employers have to minimize costs that include salaries and wages. The cut on the
cost involves either lying off employee or reduction of their pay. During the
recession, many people are laid off, and the labor market has more supply of labor
than it needs leading to personalized bargaining rather than a collective bargain
(Travor & Kimberly, 2008). An example is a situation experienced in 2010 at the
Motts juice and Apple Sauce Factory where the workers did a strike but the
company decided to replace them with more cheap labor. The equilibrium
disturbance makes labor unions lack the bargaining power and thus all agreements
between them and employers tend to favor them rather than the employees.

Organizational climate after strikes

Organizational strikes tend to strain employer-employee relation and have many adverse
effects on work relations during and after the strike. After a strike worker performance become

significantly reduced in their field of work making the employers business to have a backward
or rather a slow growth or production rate. When the concession on return to a job does not
address the needs of the employees which usually occur during a recession, most of them tend to
reduce their effort at work (Chen et al., 2011).
Another effect is that strikes tighten the relationship between the employer and employee
making work coordination and information passing from employee to the employer or vice versa
a problem. The impact of poor communication between the two parties is low performance and
hence low productivity.
Organizational structure may change in favor of the employer with most of the resistant
employees being demoted while others who are loyal being promoted to higher ranks. Any
entrepreneur has his set measure of success, and the main is employee loyalty and performance.
During recession accompanied by strikes, employers will at all cost maintain the high performing
employee and those who are loyal and willing to receive whatever payment they get from an
employer. Therefore, organizational restructuring is highly associated with strikes in most private
organizations.
Human resource actions needed to improve work relation after a strike
Changing the relationship between the employer and employee after strikes, undertaking
some known measures becomes essential. Communication and information disclosure is one of
the actions taken by the HR in managing both attack and effects of the recession (Hanna &
Freeman, 1987). Organization of staff consultation forums, face-to-face communication between
employees, employer and unions is of utmost importance in ensuring a good working condition
after strikes.

Having regard to fairness and fully involved in decision-making ensures that employee
fully participate in the activities of the firm. Engaging employees in the companys goal
achievement does them a part of the business thus minimizing chances of future strikes and
improving their working relations with the employer Hanna & Freeman, 1987).

Conclusion
Labor unions play an important role in fighting for the rights of employees but in some cases
their efforts are overturned and minimized by the economic occurrence of some effects of a
recession. They, therefore, may seem unengaged in maintaining employment and wage rates
high, but their efforts get suppressed by the performance of the economy rather than the actions
of employers. There is a need, therefore, to develop transnational labor unions able to control the
whole labor market to enhance continuous employment and bargaining power for employees.

References
Chen, H. J., Kacperczyk, M., & Ortiz-Molina, H. (2011). Labor unions, operating flexibility, and
the cost of equity. Journal of Financial and Quantitative Analysis, 46(01), 25-58.
Travor C. Brown and Kimberly Chaulk (2008). An Assessment of Worker Reaction to their
Union and Employer Post-Strike: A Canadian Experience. Department Des Relations
Industrielles press Quebec.
Hannan, M. T., & Freeman, J. (1987). The ecology of organizational founding: American labor
unions, 1836-1985. American Journal of Sociology, 910-943.