Running head: Unionization or Right to Work

Unionization or Right to Work and its effects on

Human Resource Management
Zachary Medrano
Siena Heights University

Unionization or Right to work

Abstract
This paper examines the implications of unionization and the not so new Right-To-Work (RTW)
laws will have on Human Resource Management (HRM) processes. The amassing of
information from relevant sources, ranging from both ends of the spectral debt, will be brought
together to provide an analytical view on unions and RTW laws and the effects they have on the
services HRM provides. Ascertaining a new prospective of the pros and cons, as they imply to
the many different aspects of HRM, whether it be governed by policies or a Collective
Bargaining Agreement (CBA), is the hope that this paper will provide the audience. By also
infusing the paper with a brief history of the origins and purpose HRM, the hope is to create a
bridge that will help to negate any gaps as to how these three ideologies interact with one another
and how unions and RTW laws directly affect the core of HRM.

Unionization or Right to work

Unionization or Right to Work and its effects on

Human Resource Management
The human factor permeates every facet of the business world, and the management of
this dynamic falls to HRM, to develop and guide procedures with company goals in mind while
still catering to the needs and desires of employees. The philosophy that is HRM has a relatively
short time span in comparison to human existence, and throughout that time has succumb too
many changes due to new ways of thinking, but also due to two closely linked ideologies that
have profound effects on HRM, that of unions and RTW laws. Whether or not a company is
transitioning to a union shop, is currently unionized, or the state in which it resides in is joining
the ever growing list of RTW states, understanding the implications of these scenarios is of great
importance for HR managers to efficiently and effectively execute the duties of HRM.
Brief History
The management of the workforce can trace its origin to the arrangements of artisans, in
which case an apprentice would work and live with a master of a craft in exchange for the master
to teach and care for the apprentices health and welfare, such as found in the cottage-based guild
system during the pre-industrial age. The first evolution in HRM came to became known as
personnel management, which followed a bitter strike and lockout in 1901 that led The National
Cash Register Company (NCR) to create the first personnel management department that looked
into issues such as grievances, safety, dismissals, court cases, and also record keeping and wage
management (Nayab & Richter, 2011). This style of HRM came about of study conducted
by Frederick W. Taylor, which came to the conclusion that if employees were given training and
higher wages they would accept stringent standards and work faster. It was not until after World

Unionization or Right to work

War 1 and The Great Depression that common practice of yellow-dog contracts and blacklisting
of union members ended with the passage of the LaGuardia Act and the National Labor
Relations Act (NLRA) or Wagner Act of 1935. A shift to a more traditional HRM thinking
occurred post-World War 2 and Korean War, mainly contributed to the Hawthorne Studies
performed by Elton Mayo, which many regard as the father of human relations. With the
conclusion that human factors as oppose to physical factors attributed to employee motivation
and with the passage of such legislation as the Equal Pay Act of 1963, the Civil Rights Act of
1964, and the Occupational Safety and Health Act of 1970 a steady shift in HRM occurred. This
was a shifting from Taylors scientific management theory to Mayos behavioral-oriented theory,
leading to a model that held employees as a valuable resource, to be obtained cost effectively,
used sparingly, and developed and exploited to the maximum to further corporate interests
(Nayab & Richter, 2011). The latest move has been to a strategic HRM, which places employees
as highly skilled and knowledgeable and a major source of competitive advantage for companies,
which got its inception from the Harvard Model which considers employees as assets, far more
valuable than resources (Nayab & Richter, 2011).
HRM is a strategic role of employing, training, retaining, compensating, and developing
of policies as they relate to workers, all in an effort to obtain a competitive advantage through the
selection, retention, and the continuation of motivation and development of labor that are best
suited to achieve company goals and agendas (Dias, 2011, p. 7). While there are many factors
that help to define the role that HRM plays in organization, quite possibly the two most
influential dynamics is that of unions and the associated collective bargaining agreement (CBA)
and RTW laws. Regardless if an organization is unionized or resides in a RTW state there are
seven main functions that are at the core of HRM, these functions are:

Unionization or Right to work

Staffing
Development of Work Place Policies
Compensation and Benefits Administration
Retention
Training and Development
Dealing with Laws Affecting Employment
Awareness of External Factors

Of the seven, two are uninfluenced by how an organization is set-up, union or not, laws affecting
employment and some of the external factors will not change the dynamics of HRM.
It is imperative for all HRM professionals to research what they can be expecting if a
union is moving in or if RTW laws are on the horizon, to not could lead to costly delays to the
business routine. This research should not be just some basic inquiry of a comparison of
industry standards, but it should be a detailed look at how these two ideologies may influence
population growth, work place policies, and turnover, all of which could have dramatic impacts
on any organization. When looking at staffing, one thing that should be taken in to consideration
is the effects that RTW laws have on attracting businesses and workers. There is much debt as to
whether enacting RTW laws does indeed bring new businesses and greater compensations to
states. One such proponent of RTW laws is Stan Greer, a researcher and writer of the National
Institute for Labor Relations Research (NILRR).
Greers (2015) research concluded the following:
According to inflation-adjusted U.S. Commerce Department data, total private-sector
employee compensation in the 22 states that had Right to Work laws on the books from
2003 through 2013 grew by 15.1%, nearly double the aggregate 8.2% growth in the 26
states that lacked Right to Work laws for the whole period.

Unionization or Right to work

While this does sound great for RTW laws, it failed to take in to account two union powerhouses,
Indiana and Michigan, due to the passage of RTW legislation passage in 2012 and 2013,
respectively. Wage growth is a great incentive for attracting workers and while Greers research
points to this growth in RTW states, others argue differently. Some say that RTW laws reduce
wages by $1,500 a year, are less likely to promote employees getting healthcare or pensions, and
have no impact on a states job growth (Lafer, 2012). Depending on which study stands correct
can have major implications for HRM in that if the business is located in an area affected
negatively, a lack of workers could or consumers could be in the near future.
When it comes to union company relations, many of the processes of that relationship can
be found in the CBA, which can include wages, benefits, and policies. This agreement can be
advantageous to HRM as it can take much of the guesswork out of developing policies that can
effect moral, productivity, and turnover. The difficulty comes during contract negotiations, as
both parties look to gain without having to concede anything. While there are difficulties, the
benefits are a more productive workforce, by about 13.3 percent (Minor, 2015). This may be due
to better pay, access to health insurance, and other negotiated benefits, that may led to healthier
employees, better work life balance, and a sense of job security, which can aid in the retention of
skilled workers (Minor, 2015). On the other hand, RTW laws may allow for more flexibility in
addressing the ever-changing needs of an evolving workforce, as they are not bound to a CBA.
The lack of a CBA allows the company to address concerns affecting things like productivity and
employee morale quicker as they would not be governed by a contract that may be in effect for
another two years.
While it may seem that there are only two sides to this debt, others argue that the decline
in union membership and the ineffectiveness of RTW laws is due in large part to globalization.

Unionization or Right to work

The new global economy has opened the way cheaper labor overseas coupled less regulations,
cheaper tax rates, and a large labor force to draft form, has caused many businesses to off shore
millions of jobs to developing countries, many of which are manufacturing, union strongholds.
As union attempt to improve conditions for the works, it may seem that RTW laws are
sponsoring a race to the bottom of labor cost to face the challenges of a world economy. Maybe
it is not so much that America is falling behind, but instead the rest of the world is catching up.
Whether a company is unionized or affected by RTW is not as import as the company and
the workforce being able to come together and work through their differences for the benefit of
all. Being able to build relationship, work toward common goals, and to coexist, is a necessity to
the survival of both, because the existence of a workforce is thanks to companies and the
actuality of the businesses is thanks to having access to highly skilled employees. The success of
a business will be in the capabilities of HRM to face the challenges that unions and RWT place
before them; maybe the best way to look at it is how Herb Kelleher puts it:
Your employees come first. And if you treat your employees right, guess what? Your
customers come back, and that makes your shareholders happy. Start with employees
and the rest follows from that.

Unionization or Right to work

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