Essay on Labor Union and its Effects

A labor union or also known as a trade union defined as a structured assembly of employees who come together to create results or decisions regarding situation influencing their labor. Labor unions struggle to convey financial fairness to the place of work and community fairness as well as to the state. Labor union workings similar to a democratic system, they grasp votes for officials who create decisions for the members and delivering more power for the employees to do their job.

The influence of labor unions lies in two major elements of authority: controlling the supply of labor and growing labor order. A number of economy specialists contrast them to alliances. From the shared dealing, labor union discusses the wages for the employers to compensate. Labor union poses for a bigger wage from the “equilibrium wage,” however, this action might lesser the working hours which requested by employers. Seeing as a bigger wage charge equals to a smaller amount of work per payment, labor union frequently fronts some challenges when discussing the bigger wages and as an alternative, the labor union will concentrate on raising the order for labor. Labor union practices some diverse methods to boost the order for labor (Osborne & Axelrod, 2003), and of course, wages such as:

·         Drives for the raising of the minimum wage. Since the minimum wage will increase the labor expenditure for employers to functioning the employees with low-skilled. This will reduce the distance which appeared between the rates of wage for low-skilled compared with high-skilled employees, and of course, high-skilled employees are more potential to be performing by a labor union. 

·         Enlarges the insignificant efficiency of its employees which regularly completed throughout teaching and training.

• Assists the limitations on imported items throughout taxes, tariffs, and quotas. This action will able to enlarge order for local production, plus, obviously, local labor.
• Negotiating for stringent migration policies. This act will border the enlargement in the supply of labor, particularly of the employees which considered low-skilled from out of the country. Same as the impact of rising in the minimum wage case, a restriction within the supply of low-skilled employees will drive up their wages as well. This action will affect the employers to be more attractive with the high-skilled employees.