BBC Content Team
Union and Management Relations
A labor union is a group of workers acting together to negotiate their wages and working conditions. The dealing between labor unions and business management are called union-management relations. Union management relations is challenged by the innovative human resources practices by the management. The presence of labor unions can change human resources in a company. In the absence of unions, human resources managers create different ways of hiring, compensation and benefits based upon their research and management's determination of business needs. Human resource managers interact independently with their employees to resolve grievances and performance issues. When there are labor unions, management must work through the union to determine policies and sometimes grievances. If employees organize then the company must bargain the wages, employee benefits, hours, and vacation time which will affect the employees as a whole. This means that companies have to prepare for the negotiations and may have to hire a manager to deal with just the negotiations. Also, if there are multiple unions in one company, there would be different sets of wages, hours, and benefits which would mean the company would have to keep track of multiple sets of rules. Labor unions bring challenges to companies all over the world but also set a list of rules for each union that the company has to follow. Labor unions prepare companies to negotiate and set the wages and benefits to be fair.