Impact of Financial Crisis on the Role of the Labor Union Movement in Essay

Impact of Financial Crisis on the Role of the Labor Union Movement in the US - Essay Example It is generally agreed that due to union partnership, wages are often driven up and those who are members of the labor unions tend to benefit more from the labor unions as compared to the workers who are not the members of the unions. Due to higher wages, the overall costs are increased and countries lose their overall competitiveness and hence jobs relocate to regions like Asia to provide low cost labor services. The current economic situation is also a glaring example of how higher wages and costs associated with the unions can actually increase the cost for the firms and hence make them less competitive as compared to other countries with little or no union activity. The resources of the firms are already under stress and higher costs therefore can further increase the costs. It is pertinent to note that trade union movement, at the global level, has also transcended itself into a much bigger role. During the initial phase of the current economic recession, global leaders of the d ifferent labor unions actively coordinated with G20 countries to bail out the global economy. This active participation into the overall policy making process therefore suggest that with the advent of the current global crisis, trade unions have also evolved the much bigger role for themselves including the element of policy making. (Russell) There is also a growing demand from different other quarters to suggest that labor unions must play an active part in resolving the economic crisis. As such emphasis has been laid on the role of labor unions as the facilitators of the management in overcoming the economic crisis. This new role of the labor unions therefore suggest that at least in US, the overall role of labor unions is... This essay offers comprehensive review of the Labor Union Movement in the United States in the post-crisis years. The paper outlines the diminishing role of labor unions in the modern economy. The current economic recession in US and other developed countries of the world has resulted into sharp decline in employment level. As such firms are cutting jobs in order to become more competitive and save costs. Rising unemployment therefore has also resulted into the lack of new memberships for the labor unions thus effectively reducing their influence within the organizations. Sharp decline in the output and lack of demand is resulting into lower output produced by the firms. Government is also looking for ways to further streamline and rationalize its expenses. Labor union is considered as an organization of workers wherein workers collectively strive to achieve some common goals such as better pay, improved working conditions and other benefits. The collective bargaining agent role of the labor unions therefore outlines that labor unions have the explicit right to enter into negotiations with the management of the firm to make mutual decisions in order to safeguard the interests of the workers. There have been efforts in some States of US, wherein due to high cost paid to unionized public employees that the union activity in public organizations should be banned. This suggests that there is a huge cry over curtailing the union activity in order to avoid further damage to the pubic as well as private institutions.