Advantages of Walmart Working with Unions

In: Business and Management

Submitted By Klmcbd
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1. What are the advantages and disadvantages to Wal-Mart of working with unions?

Wal-Mart is not known to be union friendly here in the United States.
The advantages of Wal-Mart working with unions are most notably the ability to expand into China. With a population of over 1.3 billion people the need to work with China’s union, which our text book notes is a communist monopoly, (Decenzo and Robbins pg 364), is imperative to opening stores there.
With this first wave of union employees we can be hopeful that Wal-Mart will start to accept Unions in United States stores and in Canada. Perhaps Wal-Mart can educate the United States Unions on how it would need to be structured in order for Wal-Mart to allow their presence.
Wal-Mart being such a large retailer and employer in the United States could potentially revolutionize as well as revitalize the union movement if it would work more closely with it instead of closing stores who speak of unionizing.

The disadvantages to Wal-Mart of working with the Unions can include-
Higher wages- our text book states that it is common to find 30% higher wages in union businesses.
Medical Benefits- Most unions push for medical benefits for its members
Loss of the Sam Walton way- By allowing Unions to enter into the Wal-Mart business model the concept of how Wal-Mart does business could change dramatically. Wal-Mart is accustomed to being the Big Dog. They are able to tell suppliers and vendors to change their practices if they want to continue to supply Wal-Mart. If Wal-Mart becomes unionized they may lose some of that Big Dog way if the supplier they are dealing with is also a member of the same union- (grocers or teamsters)

2. Explain the advantages and disadvantages of union membership from the employee perspective.

Advantages of a Union Membership for employees normally include…...

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