BUS 390 Final Project Assignment. History of Labor Unions

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Professor’s Name
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The Significance of Labor Unions in the 21st Century and their Effect on Operations Management
Introduction
A controversial debate surrounds the concept of a labour union. The history shows that labour unions served as a dual-edged sword due to their positive as well as negative implications while viewed from a multidimensional perspective (Troy 133). However, a close analysis shows that they have been more of a threat than a growth-booster for the US business sector.
History of Labor Unions
Labour unionism had its roots in the industrial revolution instigated in the 18th century. America is among the earliest adopters of this idea. The largest unit in the United States namely "The American Federation of Labor (AFL)" was formed in 1886, which comprised 1.4 million members. In 1970, the unionism had peak membership in the United States as approximately 33% of employees were members of one or more labour unions. During that period, it was frequent among workers and employer associations to conduct collective bargaining processes in order to reach mutually agreeable terms and conditions (Faue 15). Unions focused on protecting their rights in bargaining.
However, prominence of unionism in US history has undergone a massive decline over the period of time due to an unrelenting opposition of bargaining rights of workers by the advocates of corporate perspectives. By 1983, the membership rate had shrunk to 20% from where it went a steady decline to plunge below 3% in 2017. The factors that mainly contributed to this decline were the removal of legislative covers and shift of political support from working-class to the corporate sector (Yadoo). Hence, United States business environment now presents a non-unionized model of operations. The facts about the gradual decline of unionism in America are also illustrated through the graph given as under:
Figure A SEQ Figure \* ARABIC 1-Decline of Unionism in America (Yadoo)
Impact of Labor Unions on the Growth of Operation Management Function
Detailed research is performed in an interview with my father to understand the interaction between the strength of labour associations and operation management for companies in the United States. The interview with my father was an insightful source of information because he once has been a member of an active labour union during the peak years of unionism in America. I have synthesized the information gathered from both sources to draw inferences.
It is argued that those employee unions also serve the needs of employers besides protecting the rights of workers. Hammer and Avgar (346) maintain that work unions create an environment that fosters high loyalty and low employee turnover intention. Besides, unions also take the responsibility of training new employees upon themselves, which is a significant relief for employers both in terms of cost and time that otherwise go into repeated firing, hiring, and familiarizing the newcomers with their responsibilities. My father also approved of this benefit as he had noticed that the owners were happy with the tendency of unions to promote collaboration and cooperation among workers towards creating value for the organization. It f...