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Course: Compensation and Benefits answer the following question: If the federal government enacted a law mandating...

Course: Compensation and Benefits

answer the following question:

If the federal government enacted a law mandating a living wage how would that impact the need for unions?

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Unions are basically the representatives of the employees in front of the management. Usually employees tend to associate themselves with unions with the prime objective of having a standard body which will try to safeguard their rights of getting paid adequately and work conditions. Also employees want the unions should protect them from any kind of exploitation at the hands of the companies.

Living wage law is the law which mandates the minimum wage for the workers to facilitate the fulfillment of their basic needs. If the federal government of a country enacted a law mandating the living wage for workers, it will solve the minimum wage problem for them.

In such a scenario, the employees will desire to get associate with employee unions for the following:

  • To safeguard their work conditions
  • To avoid any kind of exploitation
  • To keep a check that the company is following the living wage law properly
  • To facilitate the collective bargaining for employees in case of any kind of tiff with the company’s management
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