Labor Laws and Unions, Essay Example

General Motors (GM) has been a leader in auto manufacturing since 1908. Since 1930, United Auto Workers (UAW) has engaged in collective negotiations on part of GM employees. When the labor movement ramped up in the United States, it befell to violence. It is difficult for the modern reader to comprehend this history of sabotage, lockouts, strikes and union-busting in which companies and emerging labor groups engaged. These events prompted legislators to pass laws aimed at preventing such riotous acts. The primary legal issue in recent years has been fair labor practice negotiations, but the real obstacle is economic.

Opponents of auto manufacturer unionization contend there are no real benefits for the company itself. They believe that GM and other manufacturer could produce better products cheaper without unions.  Cars would be more affordable and more durable if GM did not have to incur the costs incurred by having to deal with UAW. Proponents of auto manufacturer unionization argue that the union negotiates fair compensation and security for the work their members do. They say they ensure that the right people perform the right tasks at the right time to effectuate enhanced long-term productivity.

The unionization process begins when workers allow a collective bargaining representative to negotiate with the company on their behalf. Identify legal issues and obstacles that this organization could encounter. Union representatives are charged with getting the best working terms for the labor force. This means negotiating for things like wages, time off, and benefits. Furthermore they prevent workers from being fired or layed off for no good reason.

Many of the demands which unions secure they do so at the threat of lost production. They explain that unhappy workers are unproductive workers, and poor working conditions make for poor workmanship. Unions also maintain the right to strike. If things are not sufficiently fair to them, they simply stop working altogether. One of the primary tactics they use is the picket line. Strike workers stand, protest and march at the factory gates preventing non-factory workers from entering and taking over their positions. These circumstances are not necessarily good for the workers either. People who cannot work cannot make money, but the UAW and other labor organizations are known to use union dues to pay people to stand in picket lines. Thus, union bargaining usually acts against the interests of management and the corporation but federal law insists that companies recognize the bargaining power of the labor force (Kohler, 1986).

So, although there are legal constraints on part of GM to work with the UAW, the real limited factor is economic. Under these circumstances there is really only one viable recommendation to minimize possible litigation. GM must weigh the economic consequences against refusing to negotiate with the UAW. Nevertheless, some economists believe that good-natured relations between the workers and the company actually make matters better for both (Kochan & Rubinstein, 2000).

To be fair, GM has been known to praise the UAW on creating and maintaining high performance production (UAW Local 22, 2011). Still, it seems counter-intuitive given the economic and legal factors involved that what seem to be diametrically opposed groups would in fact harmonize in such as way as to bring about mutual prosperity. In the end, it seems to be the consumer who pays the highest price. Be it inferior goods or high prices, the union shops place the burden of the worker upon the consumer.

References

Kohler, T.C. (1986). Models of worker participation: The uncertain significance of section 8(a) (2). Boston College Law Review, 27: 499-551.

Kochan, T.A. & Rubinstein, S.A. (2000). Toward a Stakeholder Theory of the Firm: The Saturn Partnership. Organization Science, 11(4): 367-386.

UAW Local 22. (2011). UAW and General Motors reach tentative agreement. Retrieved from http://uaw22.org/?zone=/unionactive/view_article.cfm&HomeID=157068