Labor Unions can be good or bad. While focusing on the positive side, labor unions are a tough counterbalance to the forces that drive corporations to squeeze every last dollar out of each transaction, be it with their client or their member of staff. Without the presence of unions, workers would still be operating for 12 hours a day, and seven days a week, with no remunerated vacations and salary increases. The minors would be working hard in risky factories together with their parents. Unions are necessary as they respond to unimpeded capitalism, and are needed to make certain that employees are treated with fairness. In addition, unions are necessary for ensuring that the profit of worker efforts does not go to the few but is shared in the form of reasonable pay.
However, labor unions can cost the company, thus making them a bad thing. The unions can cost the company indirectly and indirectly. Slowed work progression, reduced productivity, and poorer worker relations are some of the costs linked to unionism. Unions act like labor cartels as they limit the number of employees in the industry to push up the remaining employees’ salaries. Businesses pass on high wages to clients through increased prices, and they regularly make lower profits. Unions promote their members but harm consumers in general, and particularly employees who are deprived of job opportunities. Unions curb the wages of more productive employees and increase the wages of the less skilled. They streamline wealth among employees. Every person gets equal seniority-based increment not considering how much or little he/she contributes, and this lessens wage inequity in unionized companies. This however comes at a cost to the company as they face difficulty in attracting and maintaining top employees.