Collective Bargaining in Employment Matters

Its Benefits and Why Some Corporations Try to Prevent It

In our work, most of us look for something that rewards our efforts and doesn’t put us in danger. Though many employers understand the key role their employees play in their success, far too many view labor as little more than a cost of doing business. They cut every possible corner to minimize expenses, refusing to pay a living wage and even putting workers at unreasonable risk of injury. The power that corporations typically enjoy over workers has led to the concept of collective bargaining, where workers come together through a union, to negotiate the terms of employment on behalf of all members. When workers bargain as a unit, they can respond to employers as a unit, using strikes when an employer refuses to bargain in good faith.

The Benefits of Collective Bargaining

The overarching benefit of collective bargaining is the power in numbers. When most, if not all, employees are part of a union and set terms of employment through collective bargaining, they are likely to receive higher pay, better benefits, and safer working conditions. One study found that workers whose employment agreements were secured through collective bargaining earned, on average, nearly 14% more than non-union workers. Furthermore, nearly a third more union workers receive company-provided health insurance coverage, and more than half as many more (53.9%) have company-sponsored pension or retirement benefits. Studies also show that union workers receive more paid time off.

One of the most important effects of collective bargaining is its impact on wage inequality. Unions generally have a greater impact on low-wage earners, minimizing the disparity in income. Union membership also boosts wages for minority workers.

Why Do Corporations Oppose Collective Bargaining?

There’s no secret as to the primary reason corporations try to quash unions—it’s about money. For those corporations that view workers as nothing more than a business expense, the less financial outlay they pay for labor, the more profits they’ll see. If a company can pay lower wages, force workers to pay for their own benefits, and cut corners on safety measures, the savings tend to enhance the bottom line. The stronger the bottom line, the more attractive the company is to investors, and the easier it is for the company to obtain capital for expansion.

Another objection corporations have to collective bargaining and unions is fundamentally about power and control. The greater the power of the union, the more control they have about what goes on in the workplace. Corporations prefer to maintain absolute control over workers.