3.3 – The Role of Trade Unions Flashcards
What are Trade Unions?
An organization of workers that aims at promoting and protecting the interest of their members (workers). They aim on improving wage rates, working conditions and other job-related aspects of workers.
What are the Functions of a trade union?
Negotiating improvements in non-wage benefits with employers.
Defending employees’ rights.
Improving working conditions
Improving pay and other benefits.
Supporting workers who have been unfairly dismissed or discriminated.
Developing the skills of members
Providing recreational activities for the members.
Taking industrial actions
What is Collective Bargaining?
The process of negotiating over pay and working conditions between trade unions and employers.
When can trade unions argue for higher wages and better working conditions?
Prices are rising (inflation)
The sales and demand of the firm has increased.
Workers in other firms are getting a higher pay.
The labour productivity of the members have increased.
When do Industrial Disputes happen?
When firms don’t satisfy trade union wants or refuse to agree to their terms, the members of a trade union can organize industrial disputes.
What are the three main Industrial Disputes?
Overtime ban: Workers refuse to work more than their normal hours.
Go-slow: Workers deliberately slow down production
Strike: workers refuse to work and may also protest, picket, outside their workplace to stop deliveries and prevent other non-union members from entering. This will halt all production of the firm.
What problems will these Industrial Disputes cause?
Businesses will have high costs and low output. Their revenue and profits will god own and they will enter a loss. They may also lose a lot of customers to competing firms.
Union members might now get even less wages-or none if the go on a strike
Consumers may be unable to obtain goods and services they need
