Impact of Changes in : Supply, Demand for Labor & Trade Union

what are the changes in the demand for labor?

what are the changes in the demand for labor?

• demand for labor in a specific industry isn't likely to remain constant for a long time

• if theres a fall in demand for a product, demand for the workers in that production and selling also falls!

graph for the effect on increase of demand?

→ basically : supply stays the same, but the demand rises

effect on increase of demand and supply? (graph)

→ supply up and demand up

what are the changes in supply of labor?

• if big population = more people are expected to work

• govt also raised retirement age, so it means they have to wait before getting state pension

• increases supply of labor!!

graph effect on increase in supply of labor?

what are trade unions?

organisations representing people working in a particular industry or profession that protects rights

what are their aims? (4)

1. negotiate pay and working conditions with the employer

2. providing legal protection, as in representation in court if there’s a fight with the worker and HR (discrimination)

3. putting pressure on govt to pass legislation (to improve workers rights)

4. providing financial benefits (strike pay)

whats the power of trade unions? (history related)

in 1960 and 1970, there were so many disputes w employers in TU, people thought that they were behind it

it made a disruption in production too and let people think they were too powerful

in 1980, the govt passed a legislation to limit power
- required the TU to have secret ballots b4 the strike (only worked if majority were in favor)
- allows businesses to sue b4 compensation if TU didnt obey the law
- banned secondary picketing: workers in one workplace/company strike in a group at a location to support striking workers in different workplaces/company
- making closed shops illegal: company and factory workers must belong to a specific TU.

what were the effects of TU on wages and employment? (4)

1. strong TU can force up the wages in some markets

2. if theres support, they can put pressure on employers during wage negotiations

3. higher wage = few workers employed

4. employment drops → demand for labor and wages fall

how can it be avoided? (3)

1. labor productivity rises at the same time

2. employers passing increased wage as price increases to the consumer

3. reduced profit margin

graph of the effect of TU interfering?

→ basically,
QL2 was getting no supply, only QL1 and QL3 were

QL2 was getting paid under the wage rate and they dont want to get underpaid compared to QL1

so, the TU protested for the wages to go up so QL2 can have supply as well

(THIS GRAPH IS THE BEFORE VERSION OF THE PROTEST THAT LED TO THE GRAPH CHANGING.)

name 4 types of trade unions

1. craft based: daily wage earners, plumbers, bakers

2. industrial: combining the workers of all firms (skilled and unskilled)

3. general union: all industry, company: like nurses, teachers, drivers and lawyers.

4. federation: brings multiple trade unions together under one umbrella.