As the uncertainty of the current economic crisis wages on, union representation may seem more appealing than ever to workers who are concerned about job security, wages and benefits. The truth of the matter is that unions target companies that are profitable, and while many of these companies have had to make changes to remain competitive, they are still in the sights of unions. However, when they cannot seem to make headway into well-run companies, unions will vilify a company working to maintain profitability by engaging in orchestrated corporate campaigns.
At some facilities, employees are surrounded by unionized personnel as a matter of their work environment. Many of the unionized workers will purposely solicit employees to join them even though their decision to unionize has yet to prove its value. By openly expressing a positive outlook, the unionized employees build up their own self-esteem, while hoping their decision was not in vain.
Most employees do not realize how the presence of a union and their external activities can negatively impact the business and their job security, especially in today’s competitive and recovering market. Now is the time for companies to proactively take measures to protect their company and their employees by remaining union-free. The cost of doing nothing is too great a risk.
Industry research* indicates that the cost of managing a unionized facility is 25% to 35% greater than a non-unionized operation. Furthermore, an independent study shows that administrative budgets of unionized plants were 30% higher than their non-union counterparts. Taking these facts into account, consider the following:
• For every full-time unionized worker making $10/hr, labor costs would increase by as much as $9,000 a year.
• For a company that employs 250 workers, unionization would increase labor costs by as much as $6.75 million over a 3-year collective bargaining agreement.
• For a company attempting to maintain a 10% profit margin, with labor costs accounting for 50% of the expenditure, unionization would absorb all positive margins plus account for a potential net-loss of approximately 10% annually.
* Leo Troy, Cornell University; Nat’l Bureau of Economic Research; Bureau of Labor Statistics; Council of Union-free Environments; and the Employment Policy Foundation
Unionization ultimately drives cost of goods higher, extends time on task, and fails to generate customer satisfaction/retention.
Unionization is a choice – a democratic right to every public and private sector worker in the United States protected by federal, state and local law. Unionization, and the preservation of a union-free environment, is also a choice for company leadership. Every company wishing to maintain their union-free status should consider it their responsibility to educate and inform employees of the reality of union representation. More importantly, it is imperative for companies to routinely maintain efficient training for all levels of management on union tactics, signs and symptoms of unionization, and the impact unionization has on a company’s productivity and customer satisfaction.
