Posts tagged fire unproductive employees
Are Labor Unions Effective?
September 1, 2022 // Critics of labor unions maintain that union contracts are anti-employer and make it more difficult for a company to fire an unproductive employee. They also believe that unions can increase long-term costs for employers, which can decrease competitiveness. 8 For example, many claim that unions are responsible for the decline of the U.S. auto industry. Foreign automakers entered the U.S. auto market in the 1970s and hired non-union workers to build vehicles. 9 Due to the savings in labor costs, they could afford to sell their vehicles for less than U.S. manufacturers. This made it much harder for the unionized big three automakers to produce competitive cars at affordable prices, and they lost significant market share.