What are the advantages and disadvantages to Smith of his staff being represented by a single union?
Oliver Smith is a famous chef who runs several restaurants in London. Smith employs many cooks and other staff in his restaurants. These employees work long hours and are not well paid. Smith does not encourage his staff to become members of a trade union, although several of them do belong to different unions.
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First, Smith's staff include several who are currently members of different trade unions. Regulatory compliance and negotiations would be considerably simplified if all members of the staff belonged to the same union.
Although average wages will be higher in a unionized environment, it is easier to determine and predict compensation. A large union may enable Smith to pay less for benefit packages because of economies of scale brought by the union.
Typically, employees will be better-motivated, better disciplined, have higher morale, and lower turnover in a unionized environment. It will be harder to fire employees arbitrarily or to treat them capriciously, but the union will help with best management practices, something which Smith, as a chef, might not be expert in.
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