Unions provide a platform where the firms can negotiate with the representatives of the manpower or labor force. In the absence of unions in the organization the management can face a number of difficulties as whom to approach in case of any disputes with the employees, what are the common guidelines which can be applied while interacting with employees, how to convenience the manpower regarding the policies of the organization and so on.
As in this case, a lot has been done by Wal-Mart to avoid unionization in its organization and in fact it resulted in more legal actions from the employees against Wal-Mart. In fact if we look closely, Wal-Mart ended up having a relatively more uncontrolled and more active labor organization in itself in the form of Wal-Mart Watch as the employees are taking legal help without consulting it to anyone. In this way a number of legal cases and other issues are have to tackle by the firm.
If in place of having these informal association of the employees, if Wal-Mart were having a formal union of the employees, then they can have a better negotiating terms, better control over the actions of the employees and mutual benefits can be accomplished.
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