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    3.3 The Role of Trade Unions: Igcse /O Level Economics

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    3.3 The Role of Trade Unions: Igcse /O Level Economics

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    Eldo Pappu
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    19 views8 pages

    3.3 The Role of Trade Unions: Igcse /O Level Economics

    Uploaded by

    Eldo Pappu

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 8

    S7

    IGCSE®/O Level Economics

    3.3 The role of trade unions

    © Brian Titley 2012: this may be reproduced for class use solely for the purchaser’s institute
    What is a trade union or labour union?

    Trade unions are organizations that promote and protect the


    interests of their members (employees) to improve their wages
    and working conditions
    The trade union movement worldwide has helped to
    •fight and bring to an end child labour in many countries
    •improve workers’ safety
    •increase wages for both union and non-unionized workers
    •improve education and other benefits for many poor and working
    class families

    © Brian Titley 2012: this may be reproduced for class use solely for the purchaser’s institute
    Types of trade union

    Trade unions may represent:


    Craft unions
    e.g. Union of Operators and
    Technicians in Cinema and
    Video Projection (Spain)
    •employees with the same
    skills or in the same occupation Non-manual unions
    e.g. German Police Union

    •employees in the same Industrial unions


    industry e.g. National Union of
    Mineworkers in South Africa
    (NUM)

    •employees with different skills in different


    occupations and industries General unions
    e.g. Australian Workers Union

    © Brian Titley 2012: this may be reproduced for class use solely for the purchaser’s institute
    The aims of unions

    Unions’ aims are:


    • negotiating improvements in wages and other non-wage benefits
    • defending employees’ rights and jobs
    • improving working conditions, such as securing better hours of work and better health
    and safety policies
    • improving pay and other benefits, including holiday entitlement, sick pay and pensions
    • encouraging firms to increase workers’ participation in business decision making
    • supporting members who have been dismissed or who are taking industrial action
    • developing the skills of union members, by providing training and education courses
    • providing social and recreational amenities for their members
    • improving employment legislation

    © Brian Titley 2012: this may be reproduced for class use solely for the purchaser’s institute
    Collective bargaining
    Negotiations take place between trade unions and employers over
    improvements in wages and other non-wage benefits for employees

    Trade unions may seek to improve the wages


    and other working conditions of their members if:

    •price inflation is high and rising


    •other groups of workers have received pay
    rises
    •new machinery or working practices have been
    introduced in the workplace
    •the productivity of their members has increased
    •the profits of the employing organization have
    increased

    © Brian Titley 2012: this may be reproduced for class use solely for the purchaser’s institute
    Union bargaining strength

    Strong bargaining position if: Weak bargaining position if:

    •the union represents most or all of •many workers in the firm or industry
    the workers in the firm or industry do not belong to a union
    •union members provide non-essential
    •union members provide essential
    goods or services for which there are
    services such as health care and
    many close substitutes
    electricity
    •the union lacks financial resources
    •the union is able to support its
    members financially during strike •laws outlaw or severely
    action restrict union activity

    © Brian Titley 2012: this may be reproduced for class use solely for the purchaser’s institute
    What if negotiations fail?

    Trade union members make take industrial action in an attempt to increase


    their bargaining strength. Industrial action disrupts production, increases
    costs and reduces revenues for employers.

    Arbitration may be necessary to settle industrial disputes. This involves


    employers and unions agreeing to let an independent referee, often a senior
    government official or lawyer, help them to settle their industrial dispute.

    © Brian Titley 2012: this may be reproduced for class use solely for the purchaser’s institute
    Forms of industrial action

    © Brian Titley 2012: this may be reproduced for class use solely for the purchaser’s institute

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