Factors Affecting the Bargaining Power of Unions

Introduction

As the organisations eligible for representing the rights of employees in the workplace, unions are entitled to a significant amount of influence that they can exert in the environment of the British labour force market. However, it should be noted that there are a plethora of factors affecting the impact that trade unions have, including the positive and the negative ones (Rajesh & Manoj, 2014). By taking the identified factors into account, unions can enhance the efficacy of the protection offered by them to the people employed by public and private organisations.

Main Body

The law can be viewed as one of the positive forces that have the greatest impact on organisations, compelling the managers to recognise the rights of the staff and meet the requirements of the latter. For instance, the current trade relationship regulations may limit the employers in the choice of the weapons that they can use to persuade the trade unions to succumb to their strategy. Serving as the tool for securing the rights of the labour force, the current British legal system should be considered as the primary driving force behind the bargaining power of unions (Dau-Schmidt & Ellis, 2010).

The increasing rates of information technology development in the environment of the global economy, in their turn, can be viewed as the factor that may possibly affect the opportunities of trade unions. With the latest technological advances at their disposal, companies may make an efficient use of the available data so that they could represent their case better. Similarly, the adoption of IT tools for an efficient data analysis may serve as the foundation for compelling organisations to meet the needs of its staff members. Finally, the nature of the firm’s product or services can also be viewed as the factor that may affect the bargaining power of the trade unions. In case the product is perishable, the opportunities for the target organisations to protect the rights of the staff members will increase significantly since the companies will have to work in the environment of time constraints. As a result, trade unions will gain a significant competitive advantage (Napathorn, 2011).

Conclusion

Operating in the global economy realm implies building positive relationships with the stakeholders involved and addressing the emerging conflicts in a sensible manner. However, the negotiation process may turn out to be rather complicated unless the essential forces that affect the bargaining power of companies and trade unions are taken into account. By focusing on the specifics of the economic, legal, and financial environment in which the organisation in question and the trade union safeguarding the rights of the staff members operate, one is likely to make sure that the needs of the employees are met. Therefore, it is imperative that trade unions should pay especially close attention to the data management opportunities.

Similarly, the legal issues must be revisited once the negotiation process between a trade union and a company starts. As soon as the organisation representing the employee and their interests in the target market embrace the full range of opportunities that they can use, premises for a successful negotiation between the union and the company can be created. Although it is expected that firms will be unwilling to take the side of the staff members, using the available tools to start a reasonable argument and locate the available compromise must not be overlooked. As a result, the prerequisites for a successful communication process can be created.

References

Dau-Schmidt, K. G., & Ellis, B. C. (2010). The relative bargaining power of employers and unions in the global information age: A comparative analysis of the United States and Japan. Indianapolis, IN: Maurer School of Law.

Napathorn, C. (2011). What types of factors can influence the strength of labor unions in companies and state enterprises in Thailand? International Journal of Business and Management, 6(2), 112-124.

Rajesh, S., & Manoj, P. K. (2014). Politicization of trade unions and challenges to industrial relations in India: A study with a focus on Northern Kerala. International Journal of Business and Administration Research Review. 1(2), 45-54.

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StudyCorgi. "Factors Affecting the Bargaining Power of Unions." October 10, 2020. https://studycorgi.com/factors-affecting-the-bargaining-power-of-unions/.

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StudyCorgi. 2020. "Factors Affecting the Bargaining Power of Unions." October 10, 2020. https://studycorgi.com/factors-affecting-the-bargaining-power-of-unions/.

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