Business Communication: Annotated Bibliography and Analysis

This report presents an annotated bibliography and critical argument examining the impact of labor unions on business communication and organizational productivity. The analysis includes a review of ten research articles, each summarized and evaluated for its perspective on unions' influence on various aspects such as wage determination, worker rights, productivity, and employer-employee relations. The sources cover a range of viewpoints, from those arguing unions hinder productivity through rent-seeking and restricted workforce expansion to those highlighting unions' positive roles in worker welfare, job security, and fair negotiation with employers. The critical argument centers on how unions can enhance productivity, advocating for right intentions and motivations. The report also addresses the impact of unions on different demographics, such as older individuals and women, and the effects of unionization on the economy. The resources used include scholarly articles, economic reports, and online publications, providing a comprehensive overview of the topic and its implications.

Running Head: BUSINESS COMMUNICATION
Business Communication
Student’s Name
University Name
Author’s Note

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Reference 1: Hirsch, B & Link, A. (2019). Labor Union Effects On Innovative Activity.
Gsu.edu. retrieved on 9th August 2019. Retrieved from
http://www2.gsu.edu/~ecobth/PaperReprints/Union_InnovativeActivity.pdf
Analysis
Rent seeking activities of the unions are generally considered as tax on the return on investment
of the firms in terms of innovative activity. This proposition has been justified in this article
deriving from the responses of organizational survey regarding product innovation. The analytic
model implied in this research study helped the researchers to conclude that innovation activities
are rationally not so important for the unions, compared to the non-union firms of same kind. A
range of research studies have been analyzed in this paper in order to reach a conclusion that
imposition of labor unions on the firm affects the profitability of the business. Hence, observing
the calculative analysis of the survey responses in this paper, it can be commented that the
conclusion derived in the paper in justified. Indeed, Abowd and Farber (1990) speaks that
profitability of industries is significantly impacted as an outcome of unionism in companies. The
multi-dimensional aspects that have been considered in order to establish the impact of unions on
industries are vast and truly justify the depth of the research.
Reference 2: Radcliffe, B. (2019). Unions: Do They Help or Hurt Workers?
Investopedia.com. Retrieved on 9th August 2019. Retrieved from
https://www.investopedia.com/articles/economics/09/unions-workers.asp
Analysis
One of the eminent management bloggers, Radcliffe, argues in this article that there are
differences in the approaches of the employers and the workers towards employment. However,

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the author argues that it is the unions who play the buffering role of establishing worker-
employee dialogues for many years. The primary argument of the author in this article is based
on the two main tools by means of which the unions affect the employer-owner relations. By
restricting the supply of labors and thereby enhancing the labor demand, the unions demand
compensation for the workers and that is the reason why they emphasize on several essential
organizational factors. The unions have unique legal positions by means of which they are able
to push for wage increases as well as enhance the productivity of workers. However, it has been
evidenced more than once in this article that unions, on most instances, are leaned on exercising
their authority on the organization. The mostly used means in this regard are the collective
bargaining, which is successful at times. However, Bivens et al. (2017), is of the opinion that at
times, it dampens productivity also. For evidence, The National Mineworkers Union in UK
organized a strike with compensation related demands. However, after one year when the union
was notable to gather the concessions that they were demanding, the strike was called off. This
was an acute example where the union activities reduced the production capability.
Reference 3: Nipun, S. Trade Unions and Increasing Wages for the Workers | Economics.
(Online). Retrieved on 9th August 2019. Retrieved from
http://www.economicsdiscussion.net/trade-unions/trade-unions-and-increasing-wages-for-
the-workers-economics/25804
Analysis
While, the previous article sheds light on the aspects related to unions and the impact that
they have on organizational output, this article by eminent economist Nipun, S argues that most
of the strongest union are primarily leaned on the acquisition of market power and control over

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the workforce rather than adopting the best practices for protection of the best interests of their
members. However, the greatest impact of this article is created by the comparative analysis
between the two instances where the labor is hired competitively or monopolistically. In a
market Monopsony, there are wage standards that are needed to be achieved by the employers
(Burks, 2019). Nevertheless, the author argues in this case that the unions are not able to help
those workers who are willing to perform at lower wages. In a bilateral monopoly, the wages will
be determined on the basis of a competitive set of skills.
Reference 4: Abowd, J.M. & Farber, H.S. (1990). Product Market Competition, Union
Organizing Activity, and Employer Resistence. The National Bureau of Economic Research.
Retrieved on: 9th August 2019. (DOI): 10.3386/w3353
Analysis
Eminent scholars of the NBER estimates the optimal extent of the unions in terms of
organizing activity that is needed for impacting the decision of the employers concerning the
resistance to the union activities that comes from the end of the employers. This article bases the
argument over the same exogenous variable that is the amount of quasi-rents per worker that is
supposed to be split among the union and the employer. However, analyzing the quasi rent
structuring of the industries for the time span of 1955 to 1986, when most of the industries
started to take shape, it can be communicated that employer resistance to union can be
unionization is having a positive impact on the in context to the quasi rents per worker (Hirsch
and Link, 2019). The utility of the article is that by making an analysis based on raw data, the
scholars are trying to make the outcomes quite evident before the eyes of the readers. This article
and the conclusions achieved here are an important source of insight regarding the resisting

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approaches that have been undertaken by the employers in order to limit the potential of the
unions in exercising their influence up on the workers.
Reference 5: Sherk, J. (2009). What Unions Do: How Labor Unions Affect Jobs and the
Economy. The heritage Foundation. Retrieved on 9th August 2019. Retrieved from
https://www.heritage.org/jobs-and-labor/report/what-unions-do-how-labor-unions-affect-
jobs-and-the-economy
Analysis
The labor economic research analyst, James Sherk provides a strong contrasting
argument again the ethos of utility of the unions. He strictly argues that the labor unions
dominantly acts as the labor cartels, on account of which the expansion of the workforce is
restricted and as an account of that it becomes difficult to raise the wage limits of the remaining
workers of the organization. This argument justifies the claims for reduction in output and
productivity of the organization, who thereby states that they are not able to raise the wages of
the workers. Considering the potential of the argument and analysis conducted in this article, it
can be easily justified that overachieves of the unions result in retardation of the overall
economic growth because of which there is a denomination in the rate if recovery from the
recession (M.S. 2011). The data and statistics of the corporate tax enhancement rates of the
random organizations, the article has justified that there have been acute cases of job destruction
and industrial downfall also.
Reference 6: Stevenson, M. Pros and Cons of Labor Unions. HR Exchange. (Online).
Retrieved on 9th August 2019. Retrieved from https://www.hrexchangenetwork.com/hr-
compensation-benefits/articles/pros-and-cons-of-labor-unions

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Analysis
This article written by eminent economic analyst, Mason Stevenson, makes a worthy
argument regarding the controversy associated with the ability of the unions to help in
benefaction of the pro union workers. The current statistics provided by the authors in this article
shows that the number of laborers joining the organized sector in an industrial country like
America is 262000. The authors also highlight that the effect of unionization is much more on
the public sector companies which account for more than 40% of the revenue of the countries.
However, in the course of comparing pros and cons of unionization, the author highlight that job
security of workers are higher when the union is involved. The companies cannot fire the
employees at will of they are protected by the unions. The unions demand that this kind of
decisions should be undergoing through a process of arbitration or a grievance procedure (Nipun,
2019). Again, as highlighted in the article, one of the major flaws of unionization is that in most
unionized organizations, the employees need to enter the company after registering with the
union. Non unionized candidates have very less chances of getting a job even if they are capable
and appropriately qualified.
Reference 7: People-press.org, (2019). Labor Unions Seen as Good for Workers, Not U.S.
Competitiveness. (Online). Retrieved on 9th August 2019. Retrieved from
https://www.people-press.org/2011/02/17/labor-unions-seen-as-good-for-workers-not-u-s-
competitiveness/
Analysis
Considering the reviews of the workers of the most industrial nations, the research article
highlights that more than 50% of the unionized employees are of the perception that unions have

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a positive impact on the salaries as well as benefits attained by the union workers. Nevertheless,
the credibility of the article lies in the fact that it highlighted the fact that with some worthy
changes in the foundational structure of the unions, unionization would become most favorable
for the workers in the organized private as well as public sectors (People-press.org,
2019). The aspects that the unionized workers cannot have a difference in opinion with the union
or that the employees need to secure their employment by becoming a union member needs to be
changed with time.
Reference 8: Bivens, J., Engdahl, L., Kroeger, T & Mishel, L. (2017). How today’s unions
help working people. Economic Policy Institute. Retrieved on 9th August 2019. Retrieved
from https://www.epi.org/publication/how-todays-unions-help-working-people-giving-
workers-the-power-to-improve-their-jobs-and-unrig-the-economy/
Analysis
The freedom of participating in unions and therefore negotiating on potential terms with
the employers is considered as a fundamental labor right. In fact in countries like USA, the US
law as well as the Constitution of the country advocates the fact that there is no harm in the
unions or the workers exercising this right (Radcliffe, 2019). The representation of unionized
workforce gathers support from a large percentage of Americans. The article expresses that
unions are a window for collective bargaining for a fair as well as prosperous economy. Hence,
analyzing the statistics and arguments presented in this article, it can be easily articulated that it
is rather useless to strive for the de-unionization of the organizations. In case if the workers are
able to find a collective voice in the form of unions so that they are able to sustain their standard
in means of living, there is no need for intervention of the

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Reference 9: M.S. (2011). The effect of organised labour. Economist.com. Retrieved on 9th
August 2019. Retrieved from
https://www.economist.com/democracy-in-america/2011/06/10/the-effect-of-organised-labour
Analysis
This article argues that it is barely impossible for the workers to get eliminated on the
grounds of economic inefficiency or lack of performing ability of the employees. That is why,
the author argues that there is compulsion from the end of the workers, which can force them to
join labor unions. However, arguments presented here should be in congruence with the
European culture of organizations. it is rather difficult for the originations in USA to prevent job
losses, under the conditions of great recession. That is why, we can substantiate here that the
European companies are sluggish in their response to opportunities or hazards. That is why;
terminating employees is the last resort for them.
Reference 10: Burks, M.B. (2019). Whose Employment is Affected by Unions? The National
Bureau of Economic Research. Retrieved on 9th August 2019. Retrieved from
https://www.nber.org/digest/dec02/w9043.html
Analysis
This research article builds around an eminent as well as most relevant area of study. in
the first place the argument presented here is that rather than the prime age males, it is the old
individuals as well as women whose employment is actually impacted by unionization. The
researcher has conducted an extensive primary research based on the working culture in the
OECD countries to reach this conclusion (Sherk, 2009). The researchers find that, for both men
and women, more union involvement in wage setting significantly decreases the employment

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rate of young and older individuals relative to the prime-aged group (with no significant effects
on the relative unemployment of these groups).
Critical Argument on when unions enhance productivity
Introduction
The main argument of this critical argument is that there is no worth arguing over why
unions negatively impact organizational productivity. Rather, it is more important to consider
how unions can help in enhancing the productivity and as such the output of organizations so that
they are always in state of economic productivity. I believe that if the unions are operating with
the right intension and right motivation, then in the long run they would be able to have a great
impact on the organizational production in a positive way. Researchers argue that unions, on
many instances offer resistance to the new work mythologies that could have highly impacted
productivity. Nevertheless, it is not customarily true that the unions operate with the intention of
decreasing the labor demands.
Discussion
As observed by many eminent scholars like Sherk, (2009), unions have a larger intention
of fulfilling featherbedding provisions to their contracts. Thereby they emphasize on the
organizations to utilize more people that that are required for a provided job designation. From
the ideal standpoint of unions, Stevenson (2019), argues, that it makes perfect sense since higher
number of people for a job position implies that more people are trying to pay the dues of the
organization. However, as an account of this, what happens is that a drag on average productivity
comes in to being.

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As argued by Sherk (2009), this happens because worker participation in the union
managements is minimal. On the contrary, further engagement of the workers in the managerial
committee would lead to profit sharing which would in turn ensure total investment of the
workforce and take decisions in favor of maximization of productivity other than maintenance of
industrial harmony.
Nevertheless, the biggest contribution of the trade unions would be in the domain of
questioning the contractualization of workers. In the last few years, the trend of engaging labor
on a contractual basis, victimizing as well as eliminating the permanent workers has been
predominant. The trade unions are the most suitable agents which can intervene to bring about an
end to the alarming situations that bring about an end to the industrial disturbances that
contributes to the strikes as well as lockouts, as such reducing the quantity of organizational
output along with the prosperity of the respective industrial sector along with badly affecting the
rate of growth.
Conclusion
In order to reduce lockouts as well as strikes on issues that are deliberately raised, it can
be confided that individual trade unions should be looking after the fact that there are no more
than 10% of contractual workers in an organization. In this context, it is the responsibility of the
trade unions to look for a labor cooperative society so that they can handle the recruitment of
contract labors can be made and the wages along with other benefits can be determined in
consultation with the members of the society for labor cooperation.

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Reference List
Reference 1: Hirsch, B & Link, A. (2019). Labor Union Effects On Innovative Activity.
Gsu.edu. retrieved on 9th August 2019. Retrieved from
http://www2.gsu.edu/~ecobth/PaperReprints/Union_InnovativeActivity.pdf
Reference 2: Radcliffe, B. (2019). Unions: Do They Help or Hurt Workers? Investopedia.com.
Retrieved on 9th August 2019. Retrieved from
https://www.investopedia.com/articles/economics/09/unions-workers.asp
Reference 3: Nipun, S. Trade Unions and Increasing Wages for the Workers | Economics.
(Online). Retrieved on 9th August 2019. Retrieved from
http://www.economicsdiscussion.net/trade-unions/trade-unions-and-increasing-wages-for-the-
workers-economics/25804
Reference 4: Abowd, J.M. & Farber, H.S. (1990). Product Market Competition, Union
Organizing Activity, and Employer Resistence. The National Bureau of Economic Research.
Retrieved on: 9th August 2019. (DOI): 10.3386/w3353
Reference 5: Sherk, J. (2009). What Unions Do: How Labor Unions Affect Jobs and the
Economy. The heritage Foundation. Retrieved on 9th August 2019. Retrieved from
https://www.heritage.org/jobs-and-labor/report/what-unions-do-how-labor-unions-affect-jobs-
and-the-economy
Reference 6: Stevenson, M. Pros and Cons of Labor Unions. HR Exchange. (Online). Retrieved
on 9th August 2019. Retrieved from https://www.hrexchangenetwork.com/hr-compensation-
benefits/articles/pros-and-cons-of-labor-unions

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Reference 7: People-press.org, (2019). Labor Unions Seen as Good for Workers, Not U.S.
Competitiveness. (Online). Retrieved on 9th August 2019. Retrieved from https://www.people-
press.org/2011/02/17/labor-unions-seen-as-good-for-workers-not-u-s-competitiveness/
Reference 8: Bivens, J., Engdahl, L., Kroeger, T & Mishel, L. (2017). How today’s unions help
working people. Economic Policy Institute. Retrieved on 9th August 2019. Retrieved from
https://www.epi.org/publication/how-todays-unions-help-working-people-giving-workers-the-
power-to-improve-their-jobs-and-unrig-the-economy/
Reference 9: M.S. (2011). The effect of organised labour. Economist.com. Retrieved on 9th
August 2019. Retrieved from
https://www.economist.com/democracy-in-america/2011/06/10/the-effect-of-organised-labour
Reference 10: Burks, M.B. (2019). Whose Employment is Affected by Unions? The National
Bureau of Economic Research. Retrieved on 9th August 2019. Retrieved from
https://www.nber.org/digest/dec02/w9043.html