Two benefits firms derive from unionized workforces

Abstract

PurposeThe purposes of this paper are to discuss why firms are resistant to unionization of their employees and to discuss the potential benefits firms derive if their employees are unionized. There are benefits to firms if their employees are unionized, however, and firms whose workforces are unionized should take advantage of these benefits.Design/methodology/approachAnalysis and discussion of the drawbacks and benefits of unionization to firms.FindingsFirms benefit in two ways if their workforces are unionized. First, unionization reduces employee turnover. Second, employee involvement programs are generally more effective in unionized firms, while they are often held to be illegal in nonunion firms. Therefore, managers in unionized firms should work with the unions representing their employees to further reduce turnover and make Employee Involvement programs even more effective.Originality/valueAs employees sometimes opt to unionize despite firms’ wishes to the contrary, this paper discusses the benefits of unionized workforces and advocates that management in unionized firms develop positive relations with unions to derive these benefits.