There are pros and cons for labor unions.
As a result of the rapid industrial development in the 19th century, many employers made successful ventures in which their workers were exploited. Uneducated country folk migrated en masse to city factories in search of work and ended up in substandard environments, often for low wages. Labor unions began in the United Kingdom as a way for the downtrodden workers to band together and achieve a measure of equity for themselves. Because the only bargaining tool they had was their labor, they withdrew that labor in the form of a "strike," which was effective in achieving the necessary changes in their workplaces. The labor movement spread throughout the whole world over the resulting decades and even entered politics. Unions, being a mechanism of change, became allied with the left side of politics and have generally been painted with the same brush.
The Pros
Labor unions can help their members by negotiating collectively for wages and benefits that are often better than individuals could negotiate on their own. A worker would have little chance of success in going to an employer as asking for a pay raise simply because he couldn’t make ends meet. He would likely be fired on the spot, especially in the 19th century, for making such a demand and cutting into the employer’s profits. Unions, however, can make the same requests and have the benefit of representing the entire workforce, with a greater chance of success.
The Cons
There are times when wages need to be raised to be equitable, but the power of the unions is that they can sometimes raise wages and benefits to unrealistically high levels. These levels can be above what the market can sustain, which will cause the manufacturer to raise the costs of items that it produces. The trickle-down effect and the increases in costs are passed on through the distribution chain to the end user, who inevitably is the worker initially represented by the union. Strikes also make union members look greedy, especially if they are in a high-earning job compared to many other workers.
Safeguards
Labor practices have been written into law in most countries, and this makes the union-sanctioned strike a legal process, ensuring that the employer cannot fire a worker for striking. Strikes are usually resolved quickly, as the employers realize that employee downtime will cost them production as well and a solution is better for everyone. Unions in some countries have lobbied for unfair dismissal legislation that protects a worker’s rights in the case of unfair dismissal.
Unions were created for the furthering of a worker's lifestyle and employment prospects, and to this end many unions will provide extra training for their members. They may offer night courses for workers to advance in their fields or community courses such as first aid or workplace safety practices.
Cheaper Labor Overseas
Another disadvantage of labor union agitation is that the work may vanish all together. Unrealistic wages will encourage employers to either reduce the number of workers or to outsource the work to countries where labor unions aren’t involved in the manufacturing process. This confrontation has produced an "us" and "them" atmosphere in many workplaces instead of trust and cooperation.
Unfair Dismissal
Unfair dismissal laws have a way of backfiring also, in that they can be used to protect the positions of incompetent or dishonest employees who should be fired. The law also can have the opposite effect of reducing employment, as has been seen in Australian State laws since the 1970s and federal law in the 1990s, where employers were hesitant to hire new employees because removing them for incompetence was too costly.
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