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I need a 250 word post with two in-text cited (APA) references, plus 2 100 word responses. Instructions: Your initial post should be at least 250 words. Please respond to at least 2 other students. Responses should be a minimum of 100 words and include direct questions. Original Post (250 word min) What are the costs and benefits for management of allowing the union to decide how the economic package (compensation and benefits) should be divided? Please post your response and include reference material.

1 Student post

Hello Class,

When management allows the union to decide how the economic package should be divided the results can be both costly and beneficial to the firm. According Fossom (2009), the union relies on three criteria; equity within and across employer, the companys ability to pay, and its members standards of living (p. 253). With that being said, the benefits management gains from their employees are satisfaction. Employees are satisfied with low turnover because of job security. In addition, production levels are increased because employers are older and are more experienced than nonunionized employees. Fossum (2009) claimed in an industry-level study, unionized employment is 24 percent more productive than nonunion establishments. Also, the output of quality products is 11 percent higher while the nonproduction worker quality is lower by 8 percent (Fossum, 2009).

There are also costs associated when management allows the union to decide the economic packages. One of which is health insurance. Employers can pay $600 to $1,000 per month to cover an employees family insurance (Fossum, 2009). For employees with seniority, they would be able to accumulate more time off pay because of vacations and sick leave. Some employees may receive pay then they are not at work because of holidays and jury duty. In addition, higher health care costs for some companies who have an older than average workforce. The other costs management takes in are pensions. Pension wealth is greater in unions when compared to nonunion employees. Unionized employees have higher initial benefits, early retirement opportunities, and larger postretirement increases.

Reference

Fossum, John A. (2009). Labor relations, development, structure, process. New York, NY: The McGraw Hill Companies.

2^nd student

A benefit that management will gain from allowing the union to decide how an economic packages to be divided is that the majority of the employee population will be receiving equal pay. In my own opinion I think pay is one of the main reasons why employees agreed to accepting the job anyways. Compared to nonunion firms in the same industries, pay for workers in the same jobs is more equal in unionized firms (Fossum, 2010, p. 284). This is important because ensuring that the pay is dispersed fairly amongst similar jobs will create motivated workers which affect the rate of productivity for any business. Some of the associated costs that may come with this are the large amounts of money that a business may have to spend for health care benefits for its employees. Other than providing care for the employee, the employer has to provide medical care options for their families as well. Our text states, Employers desires for certainty or predictability in the contracts cost effects, resistance to benefit packages with unknown future cost would be expected (Fossum, 2010 p. 265).

The influences of the union in the decision making process of entitlements will increase the performance of a business or organization. Employees will feel more secure within the position the serve in knowing that their family needs are met. This will also create strong labor relation between the employee and management. Evidence indicates that production worker quality in union establishments is 11 percent higher, while nonproduction worker quality is lower by 8 percent (Fossum, 2010, p.288). It would be an ideal decision for management to allow the union to decide how the economic packages are divided. This will decrease the potential from any unnecessary conflicts to arise pertaining to an organizations employee working environment.

Reference

Fossum, John A. (2010). Labor Relations, development, structure, process. New York, NY:The McGraw Hill Companies