Trade unions

• What is a trade union?

  • A group of workers who come together to improve collective rights and benefits.
  • May use their collective bargaining power and bid for employers to pay a premium wage above the normal competitive wage.
• What are two examples of trade unions?

  Unite and UNISON are the biggest two trade unions in the UK with more than a million members each.
• What are the factors involved in trade unions?

  • wages
  • working conditions - health & safety
  • resources - legal protection
  • organise actions
  • anti-discrimination
• What is meant by collective bargaining?

  • Act as one body to bargain something.
  • Unions negotiate with employers to secure better wages and benefits for their members.
  • They advocate for improved working conditions, such as safer workplaces.
  • Unions negotiate employment contracts that outline the terms and conditions of employment for their members.
• What are the two types of worker representation within trade unions?

  • Grievance handling
  • Legal support
• What is meant by grievance handling?

  They help workers address grievances, resolve workplace conflicts, and enforce employment rights.
• What is meant by legal support?

  Unions provide legal assistance to members facing discrimination, wrongful termination, or other workplace issues.
• What are the three main factors causing a fall in trade union membership in the UK?

  • Economic changes
  • Legal changes
  • Changing workforce demographics
• How are economic changes causing a fall in trade unions membership in the UK?

  The shift from manufacturing to a service-based economy in the UK has led to a decline in traditionally unionised industries.
• How have legal changes led to falling trade union membership in the UK?

  The UK implemented various laws and reforms over the years that have made it more difficult for unions to recruit and maintain members. For example, laws that require a minimum level of support before strike action can occur and restrictions on picketing have limited the effectiveness of union activities.
• How have changing workforce demographics led to falling trade membership in the UK?

  The composition of the workforce has changed, with more part-time, temporary, and gig economy jobs. These types of jobs often have less job security and fewer benefits, making it challenging for unions to organise and retain members.
• What does the trade union diagram look like?

  DIAGRAM BELOW:

  
• Explain the trade union diagram:

  • Trade unions may bid for employees to pay a premium wage (or “wage mark-up”) above the normal competitive market wage.
  • This might lead to an excess supply of labour and a contraction of total employment.
  • Whether or not higher wages achieved by unions from collective bargaining lead to increased total income depends on what happens to the employment of people in this particular labour market.
• When will unions have more success?

  • Unions will have more success in raising wages for their members if the demand for labour is relatively wage inelastic.
  • Unions are more influential when they represent a high % of all workers in a given industry/occupation.
  • Pay might also rise if unions and employers agree a pay deal based on better productivity.
• Whether or not higher wages achieved by unions from collective bargaining lead to increased total income depends on what?

  Depends on what happens to the employment of people in this particular labour market.