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    Trade unions represent workers in negotiations with employers over improving working conditions and wages. They fight for workers' rights and safer workplaces. When negotiations with employers fail to result in an agreement, unions may take industrial actions like strikes to pressure employers. However, union membership has declined in recent decades, possibly because fewer workers now work in heavily unionized industries and laws have restricted some union activities in some countries.

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    Slide 3-3

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    Trade unions represent workers in negotiations with employers over improving working conditions and wages. They fight for workers' rights and safer workplaces. When negotiations with employers fail to result in an agreement, unions may take industrial actions like strikes to pressure employers. However, union membership has declined in recent decades, possibly because fewer workers now work in heavily unionized industries and laws have restricted some union activities in some countries.

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    Trade unions represent workers in negotiations with employers over improving working conditions and wages. They fight for workers' rights and safer workplaces. When negotiations with employers fail to result in an agreement, unions may take industrial actions like strikes to pressure employers. However, union membership has declined in recent decades, possibly because fewer workers now work in heavily unionized industries and laws have restricted some union activities in some countries.

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    © All Rights Reserved
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    4 views18 pages

    Slide 3-3

    Uploaded by

    Black arab Galadima
    Trade unions represent workers in negotiations with employers over improving working conditions and wages. They fight for workers' rights and safer workplaces. When negotiations with employers fail to result in an agreement, unions may take industrial actions like strikes to pressure employers. However, union membership has declined in recent decades, possibly because fewer workers now work in heavily unionized industries and laws have restricted some union activities in some countries.

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    of 18

    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
    • employees with the same (Spain)

    skills or in the same occupation Non-manual unions


    e.g. German Police
    Union

    Industrial unions
    • employees in the same e.g. National Union of
    Mineworkers in South Africa
    industry (NUM)

    • employees with different skills in different General unions


    e.g. Australian Workers
    occupations and industries Union
    Task – Read the ‘Unison Case
    Study’
    • Questions:
    • How has the relationship between trade unions and
    employers changed over time?
    • What are the ‘shared goals’ of Trade Unions and
    Employers?
    • What are the benefits of Union Membership?
    • How can unions help in disciplinary/grievance
    procedures?
    • How have trade unions worked to ‘Safeguard’
    employees rights?
    • What methods of ‘Industrial Action’ may be taken?
    6
    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?

    8
    HOW DO TRADE UNIONS
    ACHIEVE THEIR GOALS?

    9
    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 • many workers in the firm or


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

    12
    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
    16
    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)

    17
    Questions….
    • Trade Union membership has been on
    the decline over the last 20 years.

    • Why might this be the case?

    18

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