Discuss the ethics of “union busting,” wherein employers who do not wish to have

Question

Discuss the ethics of “union busting,” wherein employers who do not wish to have unions hire specialized firms to resist such efforts, up to and including using physical force to intimidate employees who are so afraid of losing their jobs that they comply. Without addressing the actual legalities of such efforts, discuss the ethical implications. Who are the stakeholders? What are the real issues involved in such efforts by the employer? What do the stakeholders stand to lose or gain? Think broadly and don't forget to include issues like consumers, higher prices, competition, managerial power, depressed wages, and so on. In the end, does it make sense to you for an employer to engage in such activity??

Explanation / Answer

Besides being against the law, the union busting is completely unethical on the part of the employers as it is an effort to suppress the voice of the employees aimed for collective bargaining, ensuring health, safety, adequate compensation and benefits and a reasonably good work environment. This kind of attitude from an employer has long standing implications on the business of the organisation, as listed below.

(a) Such activities hamper employee morale and productivity. Rising discontent may lead to frequent workplace issues, loss of quality and efficiency, which will ultimately affect the production and sales, give rise to quality issues and ultimately profitablity of the company in the long run.

(b) The money saved through not allowing to let the employees bargain collectively will be outweighed by the rising cost of attrition, recruitment, work loss and other costs of disruption, as good employees will prefer to leave seeing the wage suppression. Some may take legal recourse, adding to the worries of the company.

(c) The rising disputes will affect the image of the company in adverse manner. Brand value will take a hit, and consumers may not be willing to prefer the company if they come to know of the employee issues. The lower productivity will not let the company to take the cost advantage and be competitive in the marketplace. The collective effect would be seen in form of higher prices of products, low market share and start a downward spiral for the company.

(d) Management might be happy doing the things unethical way and saving employee cost, but it will realise the things hard way in long term.

In the scenario, stakeholders like employees, employers, customers, organisation and market, all will lose in some way or the other. The gainers will be the competitors who would, in long term, be able to gain the greater market share.

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