Directorate of distance education master of business administration

Union Free Companies
 
These are companies, which are non-unionized. Employees of 
such plants realize the negative consequences of unionization and prefer 

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to stay away from unions. They may have misgivings about how effectively 
a union can improve unsatisfactory working conditions. Collective 
bargaining is not always successful. If union is not strong, it will be 
unable to make an employer meet its demand. Even if an employer does 
respond to union demands, the workers may be affected adversely. The 
employer may not be able to survive when the demands of the union are 
met, and thus the company may close down, costing the employees their 
jobs. The organization may force the union to strike, inflicting economic 
hardship on employees who may not be able to afford being out of work, 
or it may in some cases, attempt reprisals against pro union employees. 
Employees may strongly identify themselves with the organization and 
view unionization as an attempt to weaken the company. They may object 
to the concept of seniority or even the political activities of the unions. 
Individuals feel that their value to the organization should be judged 
on an individual basis and that everyone should not be treated equally. 
If their performance is superior, the rewards should be appropriate 
and direct. These individuals feel that joining unions would limit their 
opportunities for advancement.
Employers also may discourage unionization. Their fears about unions 
stem from:
ӹ
ӹ Increased cost because of higher remuneration and other non-
monetary benefits and services,
ӹ
ӹ Loss of control over operations – erosion of management’s 
authority,
ӹ
ӹ Loss of freedom to reward superior performance, and
ӹ
ӹ Lack of ability to adapt quickly to changing demands.