Unionization has gained more importance in the recent years as many companies and individuals have been involved in the process. The word unionization has been used in different contexts to mean different forms of combination. In this context the word unionization shall be used to mean a combination of many individuals or workers in the process of searching for a sustainable market or collective bargain. The question is whether unionized companies are more profitable than non-unionized.
The industrial worker of the world is a union for all workers in the world which protects all the workers from exploitation. Unionized companies Starbucks Ben and Jerry’s Southwest Airline Gap NUMMI Non-unionized companies Caterpillar Jet Blue UPS INtel Role of unionization in Starbucks Company The unions formed by the workers have enabled them to bargain for salary increments as well as change the work schedule. The workers have been able to air their grievances through the worker’s union that put pressure on the companies.
For instance the SWU had played a very crucial role in wage increases for the Starbucks employees. Further the union has helped in presenting various grievances over religious discrimination which has made the company to respond positively. Due to the pressure from the union, additional training for the employees was established which gives them practical experience to work effectively in the company. (Yates, 1998) Starbuck has become a company that values and protects the rights of employees which is as a result of workers union opposition and movements.
Solidarity unionism made more gains for Starbucks workers since the other formal methods had failed. Ultimately the working hours had been rescheduled. This was a very important step to the workers getting off duties which was not a common phenomenon in the preceding days before the establishment of the unions. In addition to this the company has been to recruit more employees so as to cater for the needs of high consumer demands at Starbucks stores. This has actually reduced the physical, psychological and indignities of the workers at Starbucks.
The reduction in stress among the workers has promoted high self esteem among the workers. Further the workers under the unions have been able to be insured in the health cover. (Yates, 1998) The health insurance cover that workers are given puts more pressure on the company’s finance. In the part of increased wages the company suffers great losses due to the large amounts of capital required and the company was not prepared for such uncertainties. It is hurting to the company to incur such expenditure instantly.
The freedom the workers have in bargaining has had negative effects on the company as the output is reduced since the workers determine the output. The whole process reduces the company’s sales as the cost of production goes high. The company cannot sustain the market competition. (Tittle, 2000)
Michael D. Yates (1998) Why Unions Matter. Monthly Review Press. Tittle P. (2000) Ethical Issues in Business: Inquiries, Cases, and Readings. Broadview press.