Traditionally, unions have been the voice of frustrated, undercompensated and neglected employees. They aim to protect the interests of employees. However, there are both advantages and disadvantages of influences unions have on compensation.
Advantages: Employees who are part of a union experience the sense of job security, due to the union’s demands of higher wages, better working conditions, and limited working hours which in turn can increase productivity. Research shows that unions in a workplace do have a significant effect on compensation levels. The union effect on pay is estimated to average about 10% more, but varies by industry (2% to 32% according to John A. Fossum, Labor Relations, 10th edition, 2009), employee demographics
Advantages: Employees who are part of a union experience the sense of job security, due to the union’s demands of higher wages, better working conditions, and limited working hours which in turn can increase productivity. Research shows that unions in a workplace do have a significant effect on compensation levels. The union effect on pay is estimated to average about 10% more, but varies by industry (2% to 32% according to John A. Fossum, Labor Relations, 10th edition, 2009), employee demographics