Trade Unions and Their Impact

Aim of Businesses

• Maximize profits
• Maximize sales
• Minimize costs

Aim of Employees

• Maximize wages
• Ensure safe work environment
• Good employment terms
• Job security

Conflict of Interests

• Employee wage increases can raise business costs, impacting profits.

Role of Trade Unions

• Resolve conflicts between employees and employers
• Provide support during serious issues

What is a Trade Union?

• Definition: Organization aimed at improving members' conditions, offering support and legal services.
• Roles: Bargaining for better conditions, legal advice, aid for redundancy, financial help for unfair dismissals.

Types of Trade Unions

• Craft Unions: Focus on specific skill groups.
• Industrial Unions: Represent all skill levels in an industry.
• General Unions: Open membership across industries.
• White Collar Unions: Represent professional workers.

Benefits of Joining a Trade Union

• Strength in Numbers: Increases negotiation power.
• Advice and Support: Assistance for unfair dismissals.
• Enhanced Conditions: Better pay, job security, insurance.
• Government Influence: Advocacy for better laws.

Reasons for Wage Increase Requests

• Increasing cost of living, industry profit sharing, comparing earnings.

How Trade Unions Operate

• Elected representatives negotiate with management, recruit members, handle complaints.

Business Perspective on Trade Unions

• Benefits: Streamlined negotiations, better communication, change management support.

Economic Impacts of Trade Unions

• Positive: Facilitate communication, advocate for better conditions.
• Negative: Industrial actions disrupt productivity, increase business costs.

Types of Industrial Action

• Strikes: Members refuse to work, disrupting production.
• Sit-Ins: Occupying workplace without work.
• Go Slow: Working at reduced speed.
• Work to Rule: Strict adherence to tasks outlined in contracts.

Past Paper Questions

(a) Impact of trade unions on members' welfare.
(b) Impact of strikes on an economy.
(c) Would an economy benefit from stronger trade unions?

Sample Responses for Past Paper Questions

(a) Increased wages and improved living standards.
(b) Strikes can lead to loss of productivity, potential higher prices.
(c) Benefits: Higher wages, better communication. Drawbacks: Increased costs, risk of industrial actions.