IGCSE Economics Trade Unions

Trade Union

Association of trade workers formed to gain higher wages and better working conditions

Craft Union

union made up of skilled workers in a specific trade or industry

Industrial Union

an organization of common laborers and craft workers in a particular industry

General Unions

These trade unions are usually prepared to accept anyone into membership regardless of the place they work, the nature of their work or their industrial qualifications.

White Collar Unions

These labour unions recruit professional, administrative and clerical staff (salaried workers) and other non-manual workers.

Collective bargaining

Process by which a union representing a group of workers negotiates with management for a contract

Industrial action

action taken by employees of a company as a protest, especially striking or working to rule.

Strike (Industrial disputes)

An organized work stoppage intended to force an employer to address union demands.

Go slow (Industrial disputes)

Employees continue to work but at a slower pace.

Work to rule

Industrial action where employees refuse to do all but the bare legal requirements of their job.

Sit in

nonviolent protests in which a person sits and refuses to leave

Closed shop

An agreement in which a company agrees to hire only union members

Open shop

A workplace where workers are not required to join a union

Single union agreement

An employer recognises just one single union for the purposes of collective bargaining

overtime ban(Industrial disputes)

a form of industrial action when employees refuse to work longer than their normal working hours

Factors affecting the strength of a trade union

- High level of economic activity
- a high number of members
- high skilled worker density
- favored by the govt

How does trade unions benefit workers

Collective Bargaining: Trade unions negotiate with employers on behalf of their members to secure better wages, benefits, and working conditions.
Job Security: Unionized workers often have more job security due to negotiated job protection clauses and grievance procedures.
Improved Wages and Benefits: Union members typically earn higher wages and have access to better healthcare, retirement, and other benefits.
Workplace Safety: Unions advocate for safer working conditions, reducing workplace accidents and injuries.

How does trade unions not benefit workers

Union Dues: Members are typically required to pay union dues, which can reduce take-home pay. Dues can vary in amount and frequency.
Limited Individual Negotiation: Collective bargaining means that individual workers have less flexibility in negotiating their own terms of employment.

Pros of trade unions for firms

Time is saved in negotiating with a union when compared to negotiating with individuals workers.
When making changes in work schedules and practices, a trade union's cooperation can help organise workers efficiently.
Mutual respect and good relationships between unions and firms are good for business morale and increases productivity.

Cons of trade unions for firms

Decision making may be long as there will be need of lengthy discussions with trade unions in major business decisions.
Trade unions may make demands that the firm may not be able to meet - they will have to choose between profitability and workers' interests.
Higher wages bargained by trade unions will reduce the firm's profitability.
Businesses will have high costs and low output if unions organise agitations. Their revenue and profits will go down and they will enter a loss. They may also lose a lot of customers to competing firms.