3.4. Trade Unions

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Trade Union

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Economics

14 Terms

1

Trade Union

An organization of workers formed to promote & protect the interest of its members concerning wages, benefits & working conditions

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2

Functions of Trade Union

  • Negotiating wages & benefits with employers

  • Defending employee rights and jobs

  • Improving working conditions

  • Improving pay and other benefits, including holiday entitlement, sick pay and pensions

  • Encouraging firms to increase worker participation in business decision-making

  • Developing skills of union members

  • Supporting members taking industrial action

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3

General Unions

represent workers across many different occupations

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4

Industrial Unions

represent workers of the same industry

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5

Craft Unions

represent workers with the same skill across different industries

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6

Non-manual unions/Professional unions

represent workers in non-industrial and professional occupations

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7

Collective Bargaining

Process of negotiating wages and other working conditions between trade unions and employers

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8

Industrial Action

Industrial action is taken when collective bargaining fails to result in an agreement. Taking industrial action can help a union force employers to agree to their demands

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9

Overtime ban

workers refuse to work more than their normal hours

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10

Work to rule

workers deliberately slow down production by complying with every rule & regulation

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11

Go Slow

workers deliberately work slowly

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12

Strike

workers protest outside their workplace to stop deliveries/non-unionized workers from entering

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13

Advantages of Trade Unions

  • Could help to bring about minimum working standards

  • Could help keep pay higher

  • Could help maintain Employment/enhanced job security

  • Could lead to improvement in health and safety

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14

Disadvantages of Trade Unions

  • It might cause a lack of flexibility in working practices

  • This could be a major problem as fashions change very quickly

  • This could lead to some firms going out of business

  • Workers made redundant

  • Workers will need to pay union membership fees.

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