Trade Unions

IGCSE Economics
3.3 – The Role of Trade Unions

Learning Outcomes
• Describe trade Unions and analyse their role in an
economy
2
What is a Trade Union?
• A trade union is an organisation which represents the
interests of its workers in negotiations about improving
working conditions with employers and government.
3
What has the Trade Union
movement done?
• 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
Types of Unions
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

e.g. National Union of
industry Mineworkers in South Africa
(NUM)
•employees with different skills in different General unions

occupations and industries e.g. Australian Workers Union
Task – Read the ‘Unison Case
Study’
• Questions:
• 1 How has the relationship between trade unions and
employers changed over time?
• 2 What are the ‘shared goals’ of Trade Unions and
Employers?
• 3 What are the benefits of Union Membership?
• 4 How can unions help in disciplinary/grievance
procedures?
• 5 How have trade unions worked to ‘Safeguard’ employees
rights?
• 6 What methods of ‘Industrial Action’ may be taken?
6
‘Unison Case Study’ Answers
• 1. The trade union movement grew to protect the rights of
workers, and particularly those who were exploited by
unscrupulous employers. Today, many unions see themselves as
working in partnership with government, employers and workers
• 2. a safe, secure, harmonious
working environment for all employees regardless of their race,
sex, disability, sexual orientation or religious beliefs.
7
• 3. In a unionised workplace:
• Average earnings are around 8% higher.
• The average trade union member receives 29 days annual holiday
• compared with 23 days for non-unionised workers.
• Unionised workplaces have health and safety officers to ensure
• employers keep workers safe.
• In 2000, unions won over £321 million in legal compensation for
• people who were injured or became ill at work during that year.
• Unionised workplaces are 12% more likely to have in place parental
• policies that are more generous than the statutory minimum.
• Workers in unionised workplaces are more likely to receive jobrelated
• training.
• Workplaces with union recognition are 20% more likely to benefit
• from an equal opportunities policy.
• Trade union members are only half as likely to be dismissed as nonmembers.
• for union activity.
8
• 5. By collective bargaining
• 6. ◗ a strike involving all members
◗ selective strike action
◗ action short of strike action or working to rule
◗ refusing to work overtime or unsociable hours.
9
Aims of Trade Unions...
• 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
•providing social and recreational amenities for their members
• improving employment legislation
Questions:
• Why are trade unions needed?
11
HOW DO TRADE UNIONS
ACHIEVE THEIR GOALS?
12
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 profits of the employing organization
have increased
The Strength of Union Bargaining
Power
Strong bargaining position if: Weak bargaining position if:
•the union represents most or all of •many workers in the firm or

the workers in the firm or industry industry do not belong to a union
•union members provide essential •union members provide non-

services such as health care and essential goods or services for
electricity which there are many close
substitutes
•the union is able to support its •the union lacks financial
members financially during strike resources
action
•laws outlaw or severely
restrict union activity
WHAT IF NEGOTIATIONS
FAIL?
15
When negotiations fail…..
• If the two parties fail to make an agreement, the
negotiations may reach a ‘deadlock’
• An independent Arbitrator can be called in to resolve the
situation
• If this fails, either the workers or the employer may take
industrial action to try and get what they want
Arbitration
• An independent arbitrator is
bought in to listen to both sides
and make a final decision and
recommendation.
• The arbitrator’s word is legally
binding.
• The decision required can
either be a compromise or a
pendulum arbitration can be
required
Industrial Action taken by Trade
Unions
• Action Days – Workers strike for a day or two at a time
• Go-slow – Workers carry on working but do the minimum
amount
• Overtime ban – Workers still get basic pay but refuse to
work overtime
• Strikes – Workers withdraw their labour and refuse to
work
• Withdraw goodwill – refuse to attend meetings or do work
of absent staff
• Work to rule – Follow rule book exactly and do nothing
extra
19
Task….
• Write lists of the Pros and Cons of workers/trade
unions taking industrial action (tip: think about it
from the perspective of the workers and the
employer)
20
Questions….
• Trade Union membership has been on the
decline over the last 20 years.
• Why might this be the case?
21

Trade Unions

Uploaded by

Copyright:

Available Formats

Trade Unions

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Trade Unions

Uploaded by

Copyright:

Available Formats

IGCSE Economics

3.3 – The Role of Trade Unions

Trade unions may represent: Craft unions

•employees in the same Industrial unions

•employees with different skills in different General unions

•price inflation is high and rising

•the union represents most or all of •many workers in the firm or

•union members provide essential •union members provide non-

• Why might this be the case?

You might also like