Mitigating the Impact of the Financial Crisis

There is an existing global financial crisis and it has been said that the epicenter of this financial meltdown is in the heart of America. There are many implications of a financial crisis and the most important one concerns job stability. The management of a particular factory can decide to make changes that can force an employee to resign. But with the help of an effective labor union these problems can be dealt with and the employee can salvage his or her job.

According to the official website of the International Brotherhood of Electrical Workers (“IBEW”) labor unions can help union members experience job stability. It is estimated that at least 50% of union workers have been with their current employers for at least 10 years while only 32 percent of nonunion workers can say the same (see Figure 1. , IBEW, 2009). Aside from the fact that union workers are protected from unjust discharge, union workers are relatively more satisfied with the pay they receive and the benefits that they can get from the company.

This is the main reason why they opted to stay instead of looking for a new job. The employees find stability while employers can save money by controlling the rate of turnover every year. Benefits, benefits, benefits The IBEW is one of the most influential and most successful labor union in the United States. The IBEW represents some 750,000 members in both the United States of America and Canada and considered to be among the largest by the AFL-CIO. A major part of its success is the organization’s consistency when it comes to the following issues:

Negotiated Wages – An organization with close to a million members can easily be heard and can effectively negotiate for wages that are commensurate to the skills of their members. There is no need to elaborate on the fact that there are many who are getting less than they deserve. Job Training Benefits – The productivity of a worker is equal to his or her ability to produce what is needed in the market. In other words a worker’s skills must be relevant in today’s world or else risk becoming obsolete and out of work.

Guaranteed Overtime Pay – When the markets are up and there is increase in demand, management can drive their workers into exhaustion as they attempt to equalize supply and demand. In order to protect workers from this type of exploitation this kind of measure must be in place. Safety Protections – There is no sense in making great pay but then lose an arm or a leg in the process. It is a good thing if the company will pay for expenses incurred in a work-related injury but it would be better if the employee can become productive for a very long time with all limbs intact.

Defined Work Schedules – Workers are trying to make a living and therefore there should be life outside their jobs. But without a defined work schedules they can be forced to perform two to three types of job but only get paid for one. Paid Vacations and Holidays – All work and no play can easily reduce the productivity of a person. There is no need to explain why rest and recreation is important and successful organizations like IBEW can guarantee this type of benefit.