- Business Terms
- Intercompany vs. Intracompany
- Margin Account vs. Cash Account
- Boss vs. Leader
- Semi-monthly vs. Bi-weekly
- Tactical vs. Strategic
- Part-time vs. Full-time
- Not-for-profit vs. Nonprofit
- Stakeholder vs. Shareholder
- Elastic vs. Inelastic
- Amortization vs. Depreciation
- FIFO vs. LIFO
- Inbound vs. Outbound
- Public vs. Private Sector
- Stipend vs. Salary
- Formal vs. Informal Assessment
- Proceeds vs. Profits
- Co-op vs. Internship
- Transactional vs. Transformational Leadership
- Union vs. Non-union
- Revenue vs. Sales
- Vertical vs. Horizontal Integration
- Gross Sales vs. Net Sales
- Business Casual vs. Business Professional
- Absolute vs. Comparative Advantage
- Salary vs. Wage
- Income vs. Revenue
- Consumer vs. Customer
- Implicit vs. Explicit Costs
- Letter of Interest vs. Cover Letter
- Cover Letter vs. Resume
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There has been a major debate for years about whether or not employees should unionize and why. Unions have, as a rule, lost power over the last few decades – especially in the south. There are numerous factors that contributed to this, but what we’re focused on here is what the differences are between union workers and workplaces and nonunion workers and workplaces.
The main, obvious difference that anyone can guess is that union workers and workplaces are unionized, while nonunion workers and workplaces aren’t. Yes, of course, you may be thinking, but what does that mean?
The answer to that has to do with the purpose and functions of a labor union. Labor unions are a collection of workers who band together in order to negotiate with management. Generally, as with most circumstances like this, a representative is selected to negotiate on behalf of the union workers.
This power can be used to bargain for better wages, better benefits, and safer conditions, with the understanding that if there’s no compromise, the union members will strike.
So, in a nonunion workplace, the workers haven’t banded together to bargain with the management and owners. That means that the leadership of the company is the one who decides salary, sick leave, and health benefits largely on their own.
Key Takeaways:
Union Workers | Nonunion Workers |
---|---|
Union workers are part of a labor union. | Nonunion workers are not part of a labor union. |
As a rule, union workers receive higher wages, more healthcare benefits, and more sick leave. | In most cases, nonunion workers are going to have lower pay, fewer sick days, and limited or no access to healthcare benefits. |
Members of the union will be represented by a union representative. | Nonunion workers represent only themselves. |
In a union workplace, the union will negotiate on behalf of the workers to get better pay, benefits, and workplace conditions. | In a nonunion workplace, the company has the right to decide salary, benefits, and workplace rules – so long as it’s within the law. |
Union workers are typically under contract. | The majority of nonunion workers are employed at will. |
What Does It Mean to Be a Union Worker?
In this case, a union is short for a labor union. Labor unions were created as a way for workers to have a voice in terms of wages, health benefits, and leave policies. Unions, ideally, represent the wants and needs of their members and advocate for them through a process called collective bargaining.
The idea behind labor unions is that the employer has outsize power in the employee-employer relationship, but that when workers band together, it gives them equal footing, which allows them to negotiate for better working conditions.
Due to this, union workers, on average, have a higher wage than nonunion, along with better benefits. Account to the U.S. Bureau of Labor Statistics, in 2019, 94% of union workers had access to health care benefits while only 67% of nonunion workers did.
There was a stark difference in paid sick leave as well, with 86% of union workers having access while only 72% of nonunion did. And it’s likely even in the cases where nonunion workers had benefits, they were weaker than the union workers.
Of course, as with any organization, unions can have their problems. In the name of fairness, union workers typically prize seniority. That means that it can be harder for newer workers to be quickly promoted, and also that if layoffs occur, the newest workers are the ones most likely to be let go first.
Some unions will also require that members pay dues. This covers the cost of employing representatives, among other things. Depending on how much the dues are, it can impact your salary, as that money usually comes right out of it. It can make it so that your salary bump isn’t quite as much as it first appeared.
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What Does It Mean to Be a Nonunion Worker?
In a nonunion workplace, the employees haven’t banded together to gain negotiating power, so the employer has almost all the power. That gives them almost unimpeded latitude to decide on wages, health benefits, and other workplace rules.
As employers have more power in this situation, wages are generally lower for nonunion workers than for union workers. They also tend to have weaker healthcare benefits and fewer sick days.
The majority of nonunion employees are also employed at will. At-will employment means, roughly, that either the employer or employee can break the contract at any time at will.
Basically, it means that they can lay you off or fire you at any time for any reason, and you can resign at any time for any reason. Of course, this isn’t precisely true – there are nondiscrimination laws that prevent them from firing you just because of your race or gender, but beyond that, they can cite whatever reason they wish.
Union workplaces are almost never at will, as it gives job security. However, as is often the case in unions, this favors seniority, which means that the longer you’ve worked with someone, the more protection you have from getting laid off.
Nonunion workplaces are more focused on individuality – each individual employee has their own contract with the employer. This can benefit younger or highly competent workers, as they may be able to get a higher salary than they could in a union job, as some unions fix salaries by position. It can also allow for more rapid promotions than in a union workplace.
A Brief History of Unions
In the United States, unions rose to prominence in the Gilded Age, which was a 30 year period that started in 1870. This was a time of major industrialization, when factories were springing up everywhere and people were moving away from agriculture and into cities in order to find work.
At that time, the factory owners held all the power, and the government had decided it was in its best interests to stay out of it.
That meant that workers had no protections, no required sick leave, no limit on the number of hours that could be worked without overtime pay, and no safety requirements. The owners could set up their factories however they wished and pay their employees starvation wages.
Workers eventually grew fed up with this system and decided to fight for better wages, better treatment, and more reasonable work schedules. That struggle was bloody and hard fought, but it led to the majority of the legal protections workers have today.
Union vs Nonunion FAQ
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Do the employees of a unionized workplace work at will?
No, the employees of a unionized workplace aren’t at will workers. This is because other types of employment grant a lot more job security, which is a major negotiating point for most unions. Generally, a union worker has to be fired “for cause”, which is something that will be laid out in the contract.
And even if the employee is said to breach their contract, they generally have recourse by asking for union representation. This gives them a chance to plead their case or to ask for a lesser punishment than being fired.
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Are union workers paid higher wages than nonunion workers?
Yes, on average, union workers are paid higher wages than their nonunion counterparts.
Due to collective bargaining, unions are able to demand better wages for their members than nonunion workers are able to ask for themselves. This difference can be marked depending on the industry you work in and how powerful the union you belong to is.
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Are nonunion workers required to join unions?
No, nonunion workers are not required to join unions, generally speaking. However, there are exceptions to this rule. There are certain workplaces in certain states where you may be required to pay union dues if you work there. These are typically states that have Right to Work laws.
However, if you work in the public sector, you can’t be forced to join a union, nor do you need to pay union fees. For instance, while many teachers are part of the teachers’ union, they can’t be required to be, nor are they forced to pay dues.
- Business Terms
- Intercompany vs. Intracompany
- Margin Account vs. Cash Account
- Boss vs. Leader
- Semi-monthly vs. Bi-weekly
- Tactical vs. Strategic
- Part-time vs. Full-time
- Not-for-profit vs. Nonprofit
- Stakeholder vs. Shareholder
- Elastic vs. Inelastic
- Amortization vs. Depreciation
- FIFO vs. LIFO
- Inbound vs. Outbound
- Public vs. Private Sector
- Stipend vs. Salary
- Formal vs. Informal Assessment
- Proceeds vs. Profits
- Co-op vs. Internship
- Transactional vs. Transformational Leadership
- Union vs. Non-union
- Revenue vs. Sales
- Vertical vs. Horizontal Integration
- Gross Sales vs. Net Sales
- Business Casual vs. Business Professional
- Absolute vs. Comparative Advantage
- Salary vs. Wage
- Income vs. Revenue
- Consumer vs. Customer
- Implicit vs. Explicit Costs
- Letter of Interest vs. Cover Letter
- Cover Letter vs. Resume