However - I'm not well versed in this area and willing to learn - why is this a 'good' sign?
However - I'm not well versed in this area and willing to learn - why is this a 'good' sign?
You unionize in the good times so you’re protected in the bad times.
(Not saying that’s what happened here, just saying you cannot really judge what unionization means from the outside)
As for why that’s a good thing in general, that depends on how you feel about unions. If I have the choice between union made goods and non-union made goods, I buy the union made goods. So I’m always happy to see a company unionize.
The union/employer relationship is inherently hostile. The whole idea is that unionized employees can threaten production/profits as negotiation leverage.
Choosing that path means the employees have already given up on cooperation based on goodwill. It must take a very sour relationship to reach that point.
Do you have any source for this? It seems hard to believe but I haven't been able to find any studies yet. The best I've found so far says unionization has no impact on business survival: https://www.princeton.edu/~davidlee/wp/unionbf.pdf.
I'm also skeptical that you could really study this effectively, since non-unionized employees tend to benefit when unions are formed elsewhere in their industry. You'd need to compare a group of companies that unionized against a group of similar companies in the same time and place that didn't unionize and also were completely unaffected by the mass unionization of the first population.
Also I'm not sure what "supporting logic" is, I presented my logic and you can disagree with it if you want (usually using different logic, which you haven't presented), but there's no such thing as "supporting logic".
I don't think you understand what the price of a stock means ...
Well, the context here was your assertion that unions don’t act in the “long-term interest of a business”. Now, most people understand that share prices are bets on the future value, but also that it’s not a direct relationship because there’s an inherent tension between long-term and short-term interests. That plays out in questions about how much or whether to pay dividends (which has seen a big multigenerational shift in investor preferences), and whether a move which raises share prices is a long-term detriment.
We’ve seen a lot of the latter discussed here lately with tech companies doing broad layoffs to satisfy activist investors, despite research suggesting that companies making unforced layoffs tend to underperform over the long term.
Definitely not how it works in Europe. Unions make it easier for companies to have predictable relationships with their workers, and sector-wide unions mean that a company doesn't have to worry about a labor agreement putting it at a competitive disadvantage.
It is wacky that my ability to see a doctor is depends on my job. Losing my job and experiencing a medical emergency is a scarier proposition than losing a month or two of pay for me, tbh.
Maybe neither side is planning on doing anything hostile, and they are all happy to have things clearly defined.
Edit: to add, I am not at all opposed to unions. They provide a valuable service in many industries.
I can absolutely see the benefits of a union if I felt I was being paid below my worth, if I was dealing with poor work conditions, or had no company provided insurance.
Which is the point of this conversation, when things are bad, you REALLY want a union. When things are good, it's hard to see the value of a union.
https://en.wikipedia.org/wiki/European_Convention_on_Human_R...
The boss/employer relationship is inherently hostile. The whole idea is that bosses can threaten employment/wages as negotiation leverage.
Which is why unions work well for assembly line workers: the line moves at the speed of the slowest person on the line, so there is no way to be better than average. (the company/union can fire someone enough slower than average)
Even then, the lift from collectively bargaining probably outweighs your individual competitive abilities.
Also, the union doesn't have "promotion rules." The members themselves at those unions decided that's what they wanted to negotiate with their employer into a contract. There's no union rule that says that's what members on the bargaining team have to prioritize. The bargaining team can even prioritize performance pay! I will, however, grant that the very nature of democracy (in this case, workplace democracy) means some people will disagree about what to prioritize.
Even if you love your company, love how you're treated, and don't want anything to change, forming a union still gives you two big advantages. First, it gives employees more influence and voice over the future of the organization, and second it protects the current conditions you love so much and makes it much more difficult for management (which can change at any time) to take them away in the future.
Here's one illustrative example: the staff of Politico and E&E News announce they are unionizing (https://newsguild.org/staff-of-politico-ee-news-are-unionizi...). Why?
> “We want to establish certainty and codify all of the things that we like about E&E into this new world order,” said reporter Emma Dumain. “E&E News is the most family-friendly newsroom I’ve ever worked in,” she said. “I feel supported by my editors as a working parent and that support helps me be a better journalist.” She wants to make sure everyone has the same support, no matter who their editors are or who owns the company.
> Leah Nylen, who has been involved in four company sales over 15 years, said that each one led to changes in benefits, bosses and sometimes layoffs. The day the Politico sale to Axel Springer closed, management informed workers that because of an oversight their 401K would be frozen for the rest of 2021. “If employees had had a seat at the table, I doubt something as important as our retirement and healthcare savings would have been missed,” Nylen said.
Less than two weeks later, management voluntarily recognizes the union: https://newsguild.org/politico-ee-staffers-win-union-recogni.... Everyone seems pretty happy.
> With union recognition nailed down, Organizing Committee members immediately began informing coworkers about the new rights that brings. A legal protection known as “status quo” requires management to maintain the same wages, hours and working conditions that existed when the union was formed, unless they negotiate an agreement with the union or reach a final contract. “Just a week-and-a-half after going public, we have all of these new protections,” Snyder said.
How's it going two years later? Well, not great honestly, they still haven't agreed on a contract, but Politico is still going strong and I imagine most people there are still happy with their decision to unionize.
Here's an article about voluntary union recognition: https://www.americanprogress.org/article/voluntary-recogniti.... This is not an unbiased source, but you can ignore the framing if you want and just use it as a big collection of links to voluntary union recognition examples.