How Do Trade Unions Affect Economic Productivity?
People work in different companies and often need organizations that can represent them at work, trade unions do exactly that. The purpose of a union is to protect while improving the working conditions of workers. Trade unions exist simply because one person has limited power to challenge or change the decisions that are made about his or her job. By unionizing with other workers, chances of having a voice of influence are greater. However, there are much arguments about the effect that unions exert on economic productivity and efficiency.
When employees are satisfied with their working environment, they tend to perform at their utmost best. If unions are present and are helping employees to have a voice in their working conditions, it might lead to a high productivity and efficiency. This shows the positive impact of unions on economic productivity. The Harvard School conducted a research which was in favor of positive …show more content…
In the economy, investments play a big role. Investments are what pushes a company to keep operating and providing efficient good and service.
Nevertheless, as much as strikes may reduce economic output in the end workers may get what they want and then work hard to make sure that their employers do not regret any changes or increase in wages. Empirical evidence suggests that most firms and companies that are unionized tend to be more productive meaning that investments will increase in these specific firms. An increase in investments is good for the economy.
As much as some people lose their job due to higher wages caused by unions, it is a good thing for the firm since they will only be left with employees they really need. The people left in the firm will work in a manner as to show why they deserve to be there. This will result in productivity and efficiency to rise providing growth to the firm and eventually more employment will be
When employees are satisfied with their working environment, they tend to perform at their utmost best. If unions are present and are helping employees to have a voice in their working conditions, it might lead to a high productivity and efficiency. This shows the positive impact of unions on economic productivity. The Harvard School conducted a research which was in favor of positive …show more content…
In the economy, investments play a big role. Investments are what pushes a company to keep operating and providing efficient good and service.
Nevertheless, as much as strikes may reduce economic output in the end workers may get what they want and then work hard to make sure that their employers do not regret any changes or increase in wages. Empirical evidence suggests that most firms and companies that are unionized tend to be more productive meaning that investments will increase in these specific firms. An increase in investments is good for the economy.
As much as some people lose their job due to higher wages caused by unions, it is a good thing for the firm since they will only be left with employees they really need. The people left in the firm will work in a manner as to show why they deserve to be there. This will result in productivity and efficiency to rise providing growth to the firm and eventually more employment will be