3.3 The Role Of Trade Union

Question 0

Functions of a trade union.

Answer 0

1) negotiating wage and non wage benefits with employers
2) defending employees rights and job
3) improving working conditions, such as better working hours and health and safety
4) improving pay and other benefits, including holiday entitlements, sick pay and pensions
5) encouraging firms to increase workers participation in business decision-making
6) supporting the members to take industrial action
7) improving its members skills by providing educational and training courses
8) providing social and recreational amenities for their members

Question 1

What is a trade union?

Answer 1

An organized group of workers, formed to promote and protect the wages, benefits and working conditions of its members

Question 2

The four main types of trade union and who they represent.

Answer 2

1) general unions - represents workers across different occupations and industries.
2) industrial unions - represents workers in the same industry
3) craft unions - represents workers with the same skills across different industries
4) non-manual unions or professional unions - represents workers in non-industrial and professional occupations

Question 3

1) closed shop?
2) open shop?
3) single union agreement?

Answer 3

1) all of the firms workers must belong to a trade union. Outlawed in many countries
2) firms are allowed to hire unionized and non-unionized workers
3) Where a firm agrees that a single union can represent all of its workers. Because this gives the union a strong bargaining power, a firm will only agree to it in return for commitments by the union on pay, productivity improvements and not to strike.

Question 4

When does industrial action occur?

Answer 4

It occurs when collective bargaining between a trade union and employer fail to reach an agreement for wages and other conditions.

Question 5

Examples of industrial action.

Answer 5

1) overtime ban - when workers only work their normal hours and do not go overtime.
2) work to rule - workers deliberately reduce production by following every rule and regulation.
3) go slow - workers deliberately work slowly to reduce production
4) strike - when workers refuse to go to work and may protest, they can picket out the workplace to stop any deliveries and prevent those non-unionized workers from entering.

Question 6

The effects of industrial actions?

Answer 6

1) firms - low production leads to an increase in business cost and lowers profit, revenue. If industrial actions lasts for a long time, firms may lose large, regular customers to rival firms.
2) union members themselves - a fall in income although some may receive income support from trade unions. They may lose their job as well because the demand for labour will decrease as firms lose profits and customers.
3) consumers - unable to obtain the goods and services they need and may have to pay higher prices as production costs increases.
4) economy - reputation will fall and firms may locate their business in other countries. Results in low income and high unemployment.