Impact of Economic Background Conditions on Growth of Labor Unions Essay

Impact of Economic Background Conditions on Growth of Labor Unions - Essay Example This paper offers thorough analysis of the current situation in the labor market and the change of labor union importance in protection of rights of the workers. Since the origin of labor unions workers are aware they are meant to be protected from the extremes of employers. It is primarily for this reason that unions were popular among workers. They negotiated for workers salary, terms of service and intervened on behalf of workers on a number of issues. Labor unions were therefore relevant and useful to workers. Now however, fewer workers are willing to join unions. There are a number of reasons for reluctance. One of the commonest is changes in economic situations. Unions try but cannot effectively negotiate on behalf of workers during hard economic times. There is little to be done when companies lay off workers to avert effects of recession. Sometimes as in the recent economic recession companies close down without compensating workers. People lose jobs, salaries are slashed yet unions look on. The public is aware companies will lose out to competitors if all workers are to be compensated In addition globalization is also proving a challenge to labor unions. Most companies are opening branches in remote areas where workers are paid low wages. Unionism in some of developing countries is low and workers are ignorant of their rights. Similarly there is high mobility of labor yet activities of the unions are still tied in local settings. The majority workers immigrating to other countries do not see the need to join unions.