Increases Productivity
A firm’s productivity is increased because of other positive factors like, reduced employee turnover, contentment within the employees, higher wage rate, etc.
Reduces Employee Attrition
With the help of Labor Unions, employees are able to achieve desired wages, good working environment and the right to work. When the employees are happy with their work, the attrition rate will definitely reduce.
Creates Equality
Few studies on the Labor Unions have indicated that they create equality between men and women – wages, work environment and facilities. It also creates a sense of equality between employees at different levels of hierarchy.
Voice for the Labor Union
Labor Unions act as the voice for the employees or workers. This is because Labor Unions fight for the employees rights and benefits and come together as one.
Collective Bargaining
Collective bargaining is the power that the Labor Unions have, to resolve disputes and to attain employee rights by demanding collectively as a group. A single employee’s demand would probably not catch attention, but a group of employees together can definitely make their demands heard and also attain them. It is based on the moral of, “United we stand; divided we fall”.
Higher Wages
The employees can attain higher wages than in the wage market using collective bargaining. If their demands are not met, the Labor Union will use going on a strike as the last resort to fulfill their demands.
Increased Benefits
Benefits here would indicate, hours of work, work environment, incentives, overtime pay, compensation for loss, holidays, insurance, provident fees, and paternity and maternity leaves.
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