Tuesday, December 11, 2012

The Disadvantages of Right to Work States


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The Disadvantages of Right to Work States





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Right-to-work states prohibit unions and employers from forcing employees to join a union or pay union dues as a condition of employment. These states also prevent denial of employment to non-union members or requiring a fee for the right to work. Nearly half of all states are "right-to-work" states. Advocates of right-to-work laws claim stronger economic growth indicators, such as lower unemployment rates, interstate migration and higher gross domestic product (GDP) growth. However, right-to-work can potentially weaken collective bargaining, inhibit worker wage growth and allow for employee termination without just cause.

Weakened Unions
 
Pro-union states force employers to negotiate employee rights and wage increases with labor unions. Collective bargaining sets expectations of employment terms and secures improved work-related conditions, such as increased safety measures, for employees. Since employers in right-to-work states are not required to hire union members, the union's ability to improve work conditions beyond legal minimums is weakened when membership is outnumbered by non-members in the firm. As a result, right-to-work states have higher employment related fatalities than pro-union states.
 

Lower Wages

Employees and employers alike can gain from standardized wage increases. It allows employees to plan ahead financially for life events, such as starting a family and buying a house. Employers can gain loyalty and increased commitment to quality performance when employees feel financially secure. Since right-to-work guarantees the employer can hire workers whether or not they are in the union, collective agreements can result in comparatively lower wage increases than in pro-union states.

At-Will Employment 

Right-to-work states provide for "at-will" employment agreements wherein the employer and employee can terminate their relationship for any reason without just cause. Frivolous or unfair terminations may result from employer dislike or minor infractions. Employees in right-to-work states do not benefit from a feeling of stability in their employment that pro-union states may feel. Employers cannot terminate anyone without cause who is protected by federal anti-discrimination legislation, such as the Civil Rights Act. Union collective agreements, nevertheless, set out the terms and conditions under which employers may generally dismiss employees. Collective agreements often dictate a protocol that requires employers to take certain steps to correct behavior before termination.

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