The role of trade unions

Trade union

Organizations that promote and protect the interests of their members to improve wages and working conditions

What are the aims of trade unions

Supports members who have been dismissed

Improve employment legislation

Defend employees rights

When would a trade union seek to improve wages

Price inflation

New machinery being introduced in the workplace

Productivity of members have increased

Trade unions with strong bargaining power

Represent most of the workers of an industry

Members provide essential services

Union is able to support its members during strikes

Trade unions with weak bargaining power

Members do not provide essential goods

Union lacks finance

Laws outlaw or restrict union activity

Closed shops

When all workers in a place of work must belong to a trade union

Open shop

Workers can be or not be an a union

Arbitration

A government official settling a dispute

What is some forms of industrial action

Overtime ban

Work to rule, when a worker does no more than the minimum

Strikes

How do firms suffer during strikes

Suffer higher costs and lose output

How do union members suffer during strikes

Will lose wages if the union is not paying

Unemployment

How do consumers suffer during strikes

Have to pay higher prices to cover the increased costs

How does the economy suffer from a strike

The reputation will be damaged causing firms to invest elsewhere