How Union Membership Can Benefit Your Business

As a former business/political consultant, and current business writer, I am often asked if there is any benefit to having a union in your place of business. Most owners and managers never realize that there are times in which having union representation at your business can increase your business or give other benefits that you never thought of.

Free Advertisement

For many years, the UAW and the Teamsters have advertised companies that have union membership. The goal is to draw attention to these businesses from other union members in an attempt to increase the business of these companies. Union members are encouraged to frequent these companies over any other alternatives to ensure that they keep their union brothers and sisters working.

This is free advertisement that you company is getting for having union membership. The unions do not ask for anything in return, but it is expected that you will continue to have union representation at your workplace in the future so that the advertisement continues. This advertisement can come in the forum of being listed on their website, in news letters or in other union circulars at no charge to the company.

Encouraged Contracts

While the unions do not have the final say in most third party contracts, I have seen many cases in which the UAW or Teamsters encouraged larger companies like General Motors, Chrysler, or Ford to choose one company over another due to the fact that the parts that the particular company made was made by the hands of union workers. Extra support on the inside can go a long way when trying to land a contract.

Required Contracts

Some local union contracts require that the first bids go out to those companies that have union membership. I have seen cases in which only one company out of dozens were able to bid on a job due to the fact that it was the only company like it in the area with union membership.

Union Contacts

Many of the upper echelon of the unions have strong contacts in local, state, and national governmental bodies. If your company has a good relationship with the heads of the union, you might have a chance of using these contacts to your advantage. There is nothing wrong in finding out if a local union leader can help you to get a tax abatement, or other benefit that you might need.

While paying for your workers union membership can change your bottom line, there are many benefits that you might not have ever though of. Union membership can help to increase your business, or get benefits that you sorely need when times get tough.