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Benefits And Benefits Of Unions Essay

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Unions always seeks to compress the differential of wages and salaries, meaning provide a better allocation of funds either in terms of direct compensation or in regards to benefits and other non-cashable perks. Unions try decrease any pay gap between its members and exclude any aspects such as age, gender, seniority and experience to work as a factor to which set a wage or an individual salary, but yet work to create a fair allocation of funds and compensation throughout its members, but why does this matter?
This ‘democratization’ of salaries works in two levels, first affecting the environment and the conditions within an organization, as wages of the lowest paid individuals’ is increased, raising their standard of living and also closing the gap which may be present between them and their colleagues and managers, this effect mainly groups which have been always discriminated due to their background, as they belong to groups such as women, natives and other visible minorities as their compensation differentiate from a Caucasian white male. Moreover, as compression occurs within union members, it also affects other high paid individuals, specially relating to firms which are unionized, as CEO and other executive’s staff salaries are tend to be lower than non-unionized organization, pointing the result of union existences will decrease and reduce wage differential.
But yet, this wage compression do not create only a micro level of impact but also within a macro economical

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