Answer

Workers and employers have varied perspectives in terms of approaching employment. Unions have helped the two sides come into a concord regardless of the ever-changing aspects of the service environment and the negative association of unions with the deterioration of the American economy. Moreover, despite the negative aspects of unions, they are still good for American companies as they bring about employee satisfaction, enhancing their productivity.

Disadvantages of Unions

From an economic perspective, unions affect the economy negatively. According to research, unions achieve significant benefits to employees by driving up their wages and improving their overall well-being in organizations (Gomez et al., 2019). Higher wages only mean that companies will have lower profits and will therefore have to raise the prices of their products to cover the high financial output. The high salaries that unions achieve for their members harm consumers generally, as they will have to go deep into their pockets to purchase something. Furthermore, the higher wages have resulted in fewer jobs and less investment (Gomez et al., 2019). Most companies offering higher salaries to their workers prefer employing only a few individuals so that they can afford to pay them comfortably without strain. The economic growth has made the competition more apparent than it used to be in the past generations, thus reducing the organizational power to increase prices onto their customers as it increases the chances of going out of business. Higher wages reduce the ability of American companies to reinvest, making them less competitive in the market. Besides, with a decrease in the number of jobs available in the country, unions only get to secure the well-being of their members and leave the other group of employees and unemployed individuals to face the negative impact of higher wages.

Benefits of Unions

Alternatively, unions contribute to employee satisfaction resulting in improved productivity in American companies. Employee well-being has a direct correlation to unions and employee representation. According to Gomez et al. (2019), unions are likely to structure in workplaces with poor working conditions. The main idea is usually to alter the working environments and make them favorable for the diverse group of employees that exist in America. The American workforce consists of numerous workers who belong to marginalized groups. For instance, LGBT workers have for a long time suffered from inequality in the workplace. Unions strive to create safe spaces for LGBT union members by pushing organizations to implement LGBT-friendly practices to create an all-encompassing work environment (Pulcher, Guerci & Köllen, 2020). From unions, workers get the voice that they once lacked to contribute to a better work environment. For instance, through unions, workers get higher wages reducing the income inequality in the country. They help raise wages for minority groups and in turn lessen the racial and minority wage gaps through collective bargaining. Through unions, workers also get better benefits including employer-provided health insurance and paid leave.

Conclusion

Overall, unions are crucial for the well-being of American workers by empowering them to speak out and improve their working conditions resulting in employee satisfaction and ultimately improved productivity. It may affect the economy by denying several other employees some job opportunities, but even the already employed workers are critical to the economy and it is only wise to consider their well-being to improve the overall productivity of American companies.