Unionization

A ‘trade union’ is defined as, "An organization whose membership consists for workers and union leaders, united to protect and promote their common interests."¹

According to this article in PubMed, the interest in pharmacist unions is increasing. The study found a difference in wages, benefits, and working conditions when comparing union and non-union workers. Eight percent of pharmacists in the study were already unionized and of those that participated in the study 18% of non-union pharmacist would vote for unionization in their workplace if given the opportunity. With numbers like these the ability of unions to have far-reaching effects on pharmacy is clear. Will the impact of unions be positive or negative though for the practice of pharmacy as a whole?

The frequently asked questions section in the website of a major pharmacist union draws clear advantages of being a unionized pharmacist. These include shaping the salaries of pharmacists by stating that, “If it weren't for the union…employers would pay as little as they could get away with.” Other benefits of this specific union are that promotions are based on seniority, help with grievance procedures, and improved working conditions.² Based on the amount of time spent discussing each advantage, it seems to the reader that the union is most concerned with increasing the salary of unionized pharmacists with minimal concern for safer work environments. 

While I agree that safe work environments are important for pharmacists, I do not agree with the idea that unions should be able to shape the salaries of pharmacists by using their collective bargaining power. This increase of salaries is not beneficial for the general pharmacist workforce as demonstrated in the following graphic.³

Basic macroeconomic supply and demand prove that in a free market economy,  which we have in the United States , a balance exist between the number of employed and the salary of those employees. Maximal profit is made by pharmacist as a whole where the number of employable pharmacists (E1) and the free market wages of those pharmacists (W1) line up. The pharmacist unions push to artificially inflate the salary of the pharmacists. This salary inflation is demonstrated by the W2 line. If one were to follow the supply and demand curve over, he or she would see that this raise in salary corresponds to a decrease in the number of pharmacists employed and pharmacists’ profits are not maximized.  Unionization may be beneficial in the short term, but in the long term as unions constantly seek to increase salaries of pharmacists, the number of pharmacist jobs will be decreased as it follows the supply and demand curve.

While unions may be beneficial in regards to safer work environments, I feel that this is not the main priority of 21^st century unions. Their main objective is to increase the wages of pharmacist, which as discussed, will eventually lead to a substantial negative impact on the pharmacy profession as a whole. 

Sources:
1.  "What Is Trade Union? Definition and Meaning." BusinessDictionary.com - Online Business Dictionary. BusinessDictionary. Web. 07 Sept. 2011. <http://www.businessdictionary.com/definition/trade-union.html>.
2. "Frequently Asked Questions." National Pharmacists Association (NPhA). National Pharmacists Association (NPhA). Web. 07 Sept. 2011. <http://www.npha.com/>.
3. Riley, Geoff. Labour Market - Demand for Labour. Digital image. A2 Markets & Market Systems. Tutor2u, Sept. 2006. Web. 07 Sept. 2011. <http://tutor2u.net/economics/revision-notes/a2-micro-demand-for-labour.html>.