Trade Unions have been vilified for too long

Summary: This article offers a short introduction to Trade Unions and their contribution to employee wellbeing. Without Trade Unions, we would still be working 12-hour days, seven days a week, with no health insurance, no paid holidays, no pay raises, no minimum salary, etc. The power of Trade Unions changed all of these and represent the only protection employees have against unrestrained capitalism.

“Where Trade Unions are most firmly organised, there are the rights of the people most respected” (Samuel Gompers)

There seems to be a poor understanding about the historical importance and legacy of Trade Union movements. Despite what the right-wing media, lobbyists and certain politicians will have you believe, with all their liabilities and faults, Trade Unions have done more for humanity than any other man-made organisation that ever existed. Therefore, the role of Trade Unions in society should be recognised and championed, not erased.

Unfortunately, due to lack of education or misinformation, Trade Unions have been marginalised, vilified and undermined for too long. When people hear about Trade Unions, they immediately relate it to something that is bad for society and the overall welfare of the country. The assumption behind all these opinions is that Trade Unions are a potential obstruction that must be avoided at best and tolerated when they can’t be restrained. In this respect, people need to learn more about the principles of unionist solidarity and collective action and equip themselves with the necessary knowledge to uphold their rights as workers.

We all know that power in society, and in our workplaces, has become concentrated in the hands of a few at the expense of the majority. History shows that those at the top never concede anything without it being demanded from the disadvantaged people below, so co-ordinated action by employees is most of the time necessary. It is by organising workers that Trade Unions balance these societal disparities (Read more: Human work is not a commodity). 

What have Trade Unions done for us?

The origins of Trade Unions can be traced back to 18th century Great Britain during the harsh working conditions in the Industrial Revolution. The numerous employment-rooted rights and protections we have today are a result of trade unionists marching and fighting for the greater good in society. Trade Unions have brought significant changes in society, most of which are taken for granted today. Some key changes include:

• Compelling employers to abide by employment contracts
• A national minimum wage
• Improving living standards with 40-hour work weeks
• Giving people the full weekend: Saturdays and Sundays
• Ensuring minimum holiday and sickness entitlements
• Improved parental leave
• Improved worker safety
• The abolition of child labour
• Equality legislation and better protection of migrant workers (Read more: Social Inclusion Approaches in the European Workplace)

Following legal consultation, negotiation and bargaining processes, Trade Unions have also arranged a large variety of specific local agreements on workplace issues that affected individuals.

Why do employees need Trade Unions?

Numerous studies and social research prove that employees in unionised workplaces get far better pay and terms and conditions than those that aren’t in a union (Read more: How to measure 'wellbeing' at work). The principal purposes of a Trade Union are to:

• Secure better wages and bonuses from the profits generated by the organization. (Read more: Prevent ‘Wage Theft’ feelings among employees).
• Ensure stable employment for workers by protecting jobs against retrenchment and layoff.
• Secure better working conditions (Read more: Signs your employees are suffering from 'Chronic Overwork').
• Provide legal assistance in connection with disputes regarding work and payment of wages.
• Ensure that workers obtain pension, annual leave and other benefits.
• Ensure better safety and health welfare schemes.
• Secure workers participation in management.
• Instil discipline, self-respect and dignity among employees.
• Ensure opportunities for promotion and training.
• Generate a committed and engaged workforce to secure organisational efficiency and high productivity (Read more: Employee Engagement vs. Job Satisfaction).

Trade Unions try to make sure wealth is spread around more fairly. Greater wealth equality is correlated with greater economic growth. The Trade Union’s purpose to raise wages and employee wellbeing fosters economic growth for it succeeds in shifting income away from the owners of capital to the workers. Growth without workers’ rights, social protection and consultation in business decision-making does not amount to greater social development. Economic growth needs to be broad-based, inclusive and sustainable, in which all people benefit from the proceeds of prosperity.

Some potential concerns

Even though most developed countries, especially Scandinavian countries which also show the healthiest national happiness scores among their citizens, tend to register higher Trade Union density levels (proportion of paid workers who are union members), there are still some valid apprehensions about the institution:

• An organisation might be in desperate trouble, yet its unions may be unwilling to bend or compromise to help the company survive.
• Trade Unions are criticised for taking strike actions that could result in the disruption of key public services.
• Wages tend to decline in non-unionised industries. Trade Unions ensure higher wages for their members at the expense of fewer jobs.
• Unionised workers might become so comfortable and protected that they lose the incentive to work/go the extra mile for their employer.
• Trade Unions can make the country less competitive. Outsourcing of labour to developing countries has been partially driven by increasing costs of union partnerships (Note: unfortunately, it is more profitable for multinationals to purchase disorganised and more prone to exploitation low-wage labour from developing regions).
• When potentially unscrupulously managed, Trade Unions have the power to impede a company’s or even a country’s ability to compete and thrive. As much as I'd rather not accept it, while Trade Unions have done a lot of good for society and have helped workers avoid exploitation, there is the potential for some unprincipled Unions to blackmail and abuse the system… this has happened in various countries where Trade Unions have been hijacked by untrustworthy elements.

Employers and Trade Unions working together

Employers and Trade Unions need to work closely together to ensure that employees’ provisions operate effectively and for mutual benefit. In case of unavoidable collective disputes/industrial action, Trade Union members and their leadership must come to the table with reasonable requests, particularly in difficult economic times.

Negotiating for a favourable solution for both parties should be the main objective. This is much more reasonable than assuming collective disputes is a competition that must be won at all costs by one single party.

Bargaining power abuse and potential violent disputes/industrial action need to be avoided by all means possible, not only for the benefit of employees, but for customers and the public in general (and for the overall reputation of the industry). There needs to be compromise where each party gives up part of their demand. Agreements should be found through effective communication, fairness, and mutual respect (Read more: Creating a culture of ‘Respect and Trust’).

Trade Unions, if organised in a transparent way, without violence or government help, are part of the free market; if unions can win higher wages for their workers without coercion, those wages are legitimate.

Some final thoughts...

The bottom line is that Trade Unions are needed - they are a necessary counter to unconstrained capitalism. We should not be encouraging the elimination of Trade Unions. Let’s accept the fact that workers have a right to organise themselves, and management has a right to negotiate with them.

“The most common way people give up their power is by thinking they don't have any” (Alice Walker)

As HR managers, whether in the private or public sector, we have to recognise that we agreed to employee contracts, so we can’t then complain about them, or rail against those ‘Greedy’ Trade Unions (Read more: Are you simply paying lip-service to Corporate Social Responsibility?).

The culture of business organisations and the character of societies should be judged by how people are treated and not by the wealth these generate. When we pay attention to suffering and potential injustice that is when we’ll understand truly profound things about who we are as individuals and as a collective society.

Wherever you stand on the political spectrum, we need to agree Trade Unions are an important part of democracy as an expression of respect within workplaces and safeguarding the general wellbeing of employees. Trade Unions are not simply about ensuring employees have representation in the workplace but more about being part of a wider movement to create a better society where basic human dignity is valued and respected.

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Disclaimer: The views expressed in this blog are solely those of the author in his private capacity and do not in any way represent the views of any other entity.