Trade Union

• What is a trade union?

  An organization which aims to protect the interests of its worker members
• Types of trade union:

  • Craft union
  • Industrial union
  • White collar union
  • General union
• Craft unions organise workers according to their skill
• Industrial union organise workers according to industry
• White collar union recruit professional, administrative and clerical staff and other non-manual workers
• General unions accept anyone irregardless of their job
• Role of trade union:

  • Bargaining with employers for better pay and better terms and conditions
  • Ensuring equipment is safe to use
  • Give members legal advice/legal support when necessary
  • Giving support when members are made redundant
  • Persuading government to pass legislation in favor or workers
• What is collective bargaining?

  Process of trade union representatives negotiating on behalf of their worker members with employer representatives for better pay and conditions
• Reasons for collective bargaining:

  • Rise in cost of living due to inflation
  • Workers in comparable jobs receive wage increase
  • Increased profits for firm as a whole
  • Increase in productivity of labour
• What is industrial action?

  Measures taken by trade union members as a result of major disagreements with employers
• Industrial action:

  • Strike - Refuse to work completely
  • Work-to-rule - Work to fulfill minimum requirements of job
  • Go-slow - Complete work slowly
  • Sit-in - Turn up to work and occupy premises but don't do work
• Factors influencing strength of trade union:

  • Number of members
  • Strength of unity
• High level of membership:

  • Growth in manufacturing jobs
  • Widening wealth gap and higher costs of living
• Low level of membership:

  • Government legislation reduce trade union influence
  • Decline in manufacturing jobs
  • Growth in part-time employment
  • More firms independently agree to fairer terms
  • Increase in unemployment
  • Increase in employment in small firms
  • Increase in number of self-employed people
• Advantages of trade union:

  • Act as channel of communication between employer and employee
  • Negotiate on behalf of members for better pay and conditions
  • Negotiate with government for increase in minimum wage
  • Reduce conflict
  • Offer legal support
• Disadvantages of trade union:

  • Portrayed as negative upon taking industrial action which results in loss of productivity
  • May increase firm's production costs and reduce profits