Is Your Organization Ripe for Unionizing?

By Eric Magbaleta, SPHR
Just My E-Pinion

There is no doubt that the economic downturn has had an impact on business. And just because 2009 is over, it doesn’t mean that employers will stop cutting jobs or that they won’t implement other cost savings measures in 2010. 

In the midst of a recession, organizations are more vulnerable to unionization. It is true that this country has seen a decline in the percentage of workers who are union members. According to researchers at Georgia State University and Trinity University, the percentage of the workforce belonging to unions dropped from 24% in 1973 to a low of 12% in 2006. It is interesting to note, though, that as the economy soured in 2008, the percentage of union members rose to 12.4%, up from 12.1% the year before.

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Here are three of the factors that can make an organization open to a possible union-organizing campaign.  

1. Noncompetitive wages and benefits. Unions contend that they can secure higher wages and more benefits for their members through their collective bargaining power. On average, union members earn more paid vacation and sick leave, pay lower medical premiums, and are guaranteed wage increases.  Organizations need to maintain competitive wages and benefits to meet market demands and ensure salary reviews and adjustments are conducted annually. This is especially important when comparing organizations within a specific industry or profession.

2. Hazardous working conditions. Workplace safety has historically been a focal point for unions because many organizations tend to ignore or overlook basic workplace safety.  Unions have been successful in negotiating extended breaks and requiring additional safety training, which results in a decrease in workplace accidents. Employees expect to work in a safe work environment. Organizations that foster such an environment will enjoy a more productive workforce and reduce their liability stemming from OSHA violations.

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3. Lack of job security. Because of the changing dynamics in the economy and technology, organizations do not typically employ workers for their entire career, and there is no incentive to train workers who may be laid off or quit. Union members generally have more job security than their non-union counterparts, as unions often negotiate contract provisions that deter organizations from reducing hours, laying off employees, or disciplining employees without just cause. Additionally, grievance procedures give workers a process to appeal a termination. In many states, non-union employees are considered “at will,” and they don’t have any formal options or recourse unless they were terminated for illegal discrimination. 

Of course, other factors can influence union-organizing activity, but the main reason organizing occurs is poor management practices. It is natural for workers to see how their wages, benefits, etc. measure up to those of their peers in any profession or industry. Managers must think of ways to show their employees that they care about them, and to listen to their concerns.

Eric Magbaleta, SPHR, works as a human resources consultant for a healthcare organization based in the Pacific Northwest.