Thursday, January 17, 2013

Trade the union

The good and bad of trade unions

Anything that evolved in history happened out of need. And when it diverted from the main cause for which it came into existence, it slowly extinguishes. The same is true with trade unions. The history of trade unions reveals how workers unionised out of the need to stand against oppression, tyranny and suppression of greedy capitalists. But, with time, the popularity of trade unions has faded gradually because of many reasons.

Firstly, hatred against trade unions increased especially with the emergence of free-market economy. Over the years, capitalist entrepreneurs and trade unions usually worked towards opposing goals – one for shareholder’s wealth, the other for collective bargaining – with a strike being a potent negotiating weapon of unions to achieve their employee benefit goals. Secondly, innumerable researches came out against trade unions revealing how existence of trade unions increased wage rate, even inefficiency and lowered productivity to a large extent. Economists like Milton Friedman criticized trade unions severely, terming the concept the biggest blow to capitalism. Cases like General Motors in US (where the trade union almost bled the company dry with strikes) and Dunlop in India (which closed down once and for all due to a long standing strike) have only added to this proposition.


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail

IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)