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Broken Bonds: The Harsh Reality of Unions Failing Their Members

The global supply chain has been undergoing a steady transformation in recent years, and this shift has had
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Global Supply Chain Group - vivek BWVivek Sood: Sydney based managing director of Global Supply Chain Group, a strategy consultancy specializing in supply chains. More information on Vivek is available on www.linkedin.com/in/vivek and more information on Global Supply Chain Group is available www.globalscgroup.com 

Vivek is the Managing Director of Global Supply Chain Group, a boutique strategy consulting firm specialising in Supply Chain Strategies, and headquartered in Sydney, Australia . He has over 24 years of experience in strategic transformations and operational excellence within global supply chains. Prior to co-founding Global Supply Chain Group in January 2000, Vivek was a management consultant with top-tier strategy consulting firm Booz Allen & Hamilton.

Vivek provides strategic operations and supply chain advice to boards and senior management of global corporations, private equity groups and other stakeholders in a range of industries including FMCG, food, shipping, logistics, manufacturing, chemicals, mining, agribusiness, construction materials, explosives, airlines and electricity utilities.

Vivek has served world-wide corporations in nearly 500 small and large projects on all continents with a variety of clients in many different industries. Most of projects have involved diagnostic, conceptualisation and transformation of supply chains – releasing significant amount of value for the business. His project work in supply chain management has added cumulative value in excess of $500M incorporating projects in major supply chain infrastructure investment decisions, profitable growth driven by global supply chain realignment, supply chain systems, negotiations and all other aspects of global supply chains.

Vivek has written a number of path breaking articles and commentaries that are published in several respected journals and magazines. Vivek has spoken at several supply chain conference, forums and workshops in various parts of the world. He has also conducted several strategic workshops on various aspects of supply chain management. He received his MBA with Distinction from the Australian Graduate School of Management in 1996 and prior to these studies spent 11 years in the Merchant Navy, rising from a Cadet to Master Mariner.

More information on Vivek is available on www.linkedin.com/in/vivek  and more information on Global Supply Chain Group is available on www.globalscgroup.com

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Introduction

Unions have played a key part in labour movements across the world for ages. In essence, a union is a group of workers who come together to negotiate better wages, safer working conditions, and benefits from their employers. While many people are under the assumption that unions are only limited to blue-collar workers, the truth is that they represent a wide variety of industrialist and professions. Unions are often formed to protect workers from exploitation and to ensure that they receive fair treatment from their employers. In this article, we will explore the concept of union representation in more detail, including what a union is, who it is for, and how it can benefit workers.

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Content

What is a Union?

A union is an organization that represents a group of employees within a particular company or industry. It is formed to negotiate with the employer on behalf of its members regarding various employment-related matters, including wages, working conditions, benefits, and job security.

The primary goal of a union is to ensure that its members receive fair treatment and compensation for the work they do. Unions negotiate collective bargaining agreements with employers that outline the terms and conditions of employment, including wages, hours of work, benefits, and grievance procedures.

When a union is formed , employees who wishes to join the union  pays union dues to cover the costs of negotiations and representation. Union’s representatives work with the employer to negotiate on behalf of the employees, and members may vote on whether to accept the terms of the proposed collective bargaining agreement

Pros and Cons of Union

Pros of Unions:

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A union is an organization that represents a group of employees within a particular company or industry. It is formed to negotiate with the employer on behalf of its members regarding various employment-related matters, including wages, working conditions, benefits, and job security.

The primary goal of a union is to ensure that its members receive fair treatment and compensation for the work they do. Unions negotiate collective bargaining agreements with employers that outline the terms and conditions of employment, including wages, hours of work, benefits, and grievance procedures.

When a union is formed , employees who wishes to join the union  pays union dues to cover the costs of negotiations and representation. Union’s representatives work with the employer to negotiate on behalf of the employees, and members may vote on whether to accept the terms of the proposed collective bargaining agreement

Cons of Unions:

  1. Union Dues: Union membership comes with dues that can be costly. While these dues provide important benefits to members, they can also be a financial burden, particularly for lower-paid workers.
  2. Conflict with Management: Unions can create conflict between employees and management, which can lead to disruptions in the workplace. This can be particularly true during contract negotiations or labour disputes.
  3. Limited Individual Negotiation: Unions can negotiate for the collective group, which means that individual workers may not be able to negotiate for their own specific needs or preferences. This can be frustrating for workers who feel that their individual contributions are not being recognized.
  4. Slower Decision-Making: Unions sometime slow down decision-making processes due to the need for collective agreement and consensus-building. This can be frustrating for workers who want to see quick action taken on workplace issues.

Which countries need more union

The need for union involvement varies depending on the country and its labour laws and practices. However, there are some countries where unions play a particularly important role in protecting workers’ rights and advocating for better working conditions. Here are a few examples:

 

  1. Developing Countries: Developing countries often have weaker labour laws and regulations than developed countries. This can make it more difficult for workers to organize and negotiate for better wages and working conditions. In addition, many workers in developing countries are employed in industries such as agriculture and manufacturing, which are often characterized by poor working conditions and low wages. Unions can help to address these issues by advocating for better labour laws, organizing workers, and negotiating with employers for better wages and benefits.
  2. Countries with High Income Inequality: Countries with high levels of income inequality, such as the United States, UK, Australia often have weaker labour protections than countries with more equitable income distributions. Unions can help to address this by advocating for better wages, benefits, and working conditions for all workers. This can help to reduce income inequality and create a more fair and just society.
  3. Countries with High Levels of Informal Employment: Many countries have high levels of informal employment, which means that workers are not covered by labour laws and regulations. Countries like Bangladesh, Pakistan etc unions can play an important role in organizing and advocating for these workers. By organizing informal workers, unions can help to improve working conditions, negotiate for better wages and benefits, and help to bring these workers into the formal economy.
  4. Countries with Weak Labour Laws: Some countries have weak labour laws and regulations, which can make it more difficult for workers to organize and negotiate for better wages and working conditions. In these countries, unions can help to advocate for stronger labour protections, such as minimum wage laws, overtime protections, and the right to organize and bargain collectively.
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Here is a list of countries which needs some level of Union

  1. Bangladesh: With a huge textile industry, workers in Bangladesh face issues such as low wages, long working hours, and poor working conditions. Unions have played a crucial role in advocating for better conditions and wages for textile workers in the country.
  2. China: China has a robust manufacturing industry where workers often face long hours, low wages, and unsafe working conditions. However, the Chinese government has been cracking down on labour rights activists and unions, making it difficult for workers to organize and advocate for better working conditions.
  3. India: India has a large informal sector and IT service sector, where workers often face low wages, unsafe working conditions, and little job security. Unions have played an important role in advocating for better working conditions for informal workers such as domestic workers, construction workers, and street vendors.
  4. Mexico: Mexico has a large manufacturing sector, particularly in the automotive industry, where workers face issues such as low wages and hazardous working conditions. Unions have been instrumental in negotiating better working conditions and wages for workers in the automotive industry in Mexico.
  5. United States: Despite having strong labour protections on paper, many workers in the United States face issues such as low wages, unsafe working conditions, and limited job security. Unions have played an important role in advocating for better working conditions for workers in industries such as healthcare, education, and manufacturing.

When a union fails to function

Although unions can bring many benefits to their members, there are situations where union involvement may not provide the benefits that workers expect. Here are a few examples of when unions may not benefit their members:

 

  1. When Union Leadership is Corrupt: In some cases, union leaders may be corrupt or not acting in the best interests of their members. This can result in the mismanagement of union funds, lack of representation for workers, and a failure to address worker grievances. In such cases, workers may feel disillusioned with the union and may not see the benefits of union involvement.
  2. When the Union is not Effective: Unions are most effective when they have the ability to negotiate with employers on behalf of their members. However, in some cases, unions may lack the bargaining power to effectively negotiate better wages and working conditions. In these situations, workers may not see the benefits of union involvement and may feel that they are not receiving adequate representation.
  3. When Workers have Specialized Skills: In industries where workers have specialized skills, such as technology or healthcare, workers may not see the benefits of union involvement if the union is not able to represent their specific needs. In these situations, workers may feel that their union dues are not being put to good use and may not see the value in maintaining their union membership.
  4. When the Industry is in Decline: In industries that are in decline, such as coal mining or manufacturing, unions may not be able to effectively negotiate better wages and working conditions for their members. This can result in workers feeling that their union membership is not providing them with the benefits that they expect
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Some ways to combat corruption in Union

  1. Increased Transparency: Transparency is key to preventing corruption. Unions can establish clear rules and public procedures for financial management and ensure that union leaders are accountable for their actions. Members should have access to financial records, and audits should be conducted regularly to identify any irregularities.
  2. Education and Training: Education and training programs can help union members and leaders understand their rights and responsibilities, as well as the consequences of corruption. These programs can cover topics such as conflict of interest, financial management, and ethical behaviour.
  3. Enforcement of Laws and Regulations: Laws and regulations that govern union activities should be enforced rigorously. Unions should work closely with government agencies to ensure compliance with labour laws and regulations.
  4. Democratic Elections: Elections within unions should be free, fair, and transparent. Members should have the right to vote without fear of intimidation or retaliation. Unions should also establish procedures for the removal of corrupt officials.
  5. Whistle-blower Protections: Whistle-blowers play an important role in exposing corruption. Unions should establish procedures for whistle-blowers to report corruption without fear of retaliation..

An instance of union failure that occurred recently

One example where union involvement did not benefit their members is the United Auto Workers (UAW) strike against General Motors (GM) in 2019. The UAW went on strike in September 2019 after negotiations with GM broke down over issues such as wages, healthcare benefits, and job security. The strike lasted for 40 days and resulted in a new contract agreement between GM and the UAW.

 

However, despite the strike and the new contract agreement, some UAW members felt that the union did not represent their interests effectively. One major issue was the lack of transparency in the UAW’s handling of the strike funds, which are intended to support striking workers with financial assistance. Some UAW members reported that they did not receive the full amount of strike pay that they were entitled to, while others reported that they did not receive any strike pay at all.

 

Additionally, there were reports of corruption within the UAW leadership, including charges against former UAW President Gary Jones and other union officials for embezzling union funds. This scandal damaged the reputation of the UAW and led some members to question whether the union was truly representing their interests.

Conclusion

In conclusion, unions are organizations that represent groups of employees within a company or industry to negotiate on their behalf with employers on employment-related matters. They negotiate collective bargaining agreements outlining terms and conditions of employment. Unions provide workers with collective bargaining power, job security, legal representation, and advocate for workplace safety regulations. However, they also have cons such as union dues, conflicts with management, limited individual negotiation, and slower decision-making. With the use of democratic elections and increased practise of transparency can weed out corruption within the union.

 

Introducing.....

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The global supply chain of products is an immense and complex system. It involves the movement of goods from the point of origin to the point of consumption, with intermediate steps that involve resources, materials and services to transport them. A supply chain encompasses activities such as purchasing, production, distribution and marketing in order to satisfy customer demands. Companies rely on a well-managed supply chain to meet their business goals by providing quality products and services at competitive prices.

Efficiently managing a global supply chain requires considerable effort, particularly when dealing with multiple suppliers located around the world. Complex logistics tracking systems are needed to monitor product movements from one place to another. Technologies such as artificial intelligence (AI) can help companies keep track of shipments across different locations for greater visibility into their processes.

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GARRY BADDOCK
Chief Operating Officer Graphite Energy

I have experience with many of the well-known top-tier strategy firms but chose Global Supply Chain to support me on my supply chain projects. They always meet and exceed my expectations due to the quality of the work, the ability to work collaboratively with internal teams, and the flexibility to adjust the project approach when required.

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PHILLIPPE ETTIENNE
CEO - Large Global transnational corporation From: FOREWORD - OUTSOURCING 3.0

When I engaged Vivek’s services for supply chain transformation in one of the companies I was heading, we expected the careful and methodical approach that he was famous for... I was pleased to note that the original target set for 3 years was surpassed by almost 70% in just 18 months.

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TONY FEDOROWICZ
Vice-President Supply Chain Asia Pacific

I have used their services for several business transformations and workshops in many companies. Each time an outstanding workshop and project result was delivered ensuring the success of the business transformation project. Savings surpassed $25 Million per annum in one case. Very powerful ideas, were implemented very diligently.

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Jean-Briac Le Dean
Co-Founder & Agen

Vivek is a very collaborative and open leader who leads teams by example. Whether internal teams, or clients teams, all are impressed by his intensity, energy level and drive to make things a little better.

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Lorna Calder Johnson
Omni-Channel Product Marketing
P & L Executive

Vivek's transformation expertise is apparent from his results and dedication to operations and supply chains. His strategic expertise, knowledge and network make him a standout even among an excellent team.

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