3.4 Trade Unions Flashcards

1
Q

What is a trade union

A

An organization which aims to protect the interests of its members

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2
Q

Employee objectives

A

Working conditions - safe and hygienic
Secure pay and job
Increase in pay/wages/salary
Maximizing monetary and non-monetary benefits.

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3
Q

Employer objectives

A

Maximizing profits and sales

Minimizing costs

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4
Q

general types of trade unions

A

Craft
Industrial
General
White collar/professional association

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5
Q

Functions/roles of the trade union

A
Negotiate with employers
Safety at work
Sufficient training for workers 
Legal advice 
Support members
Persuade govt.
Encourage firms for employees in decision making process

TGL SND

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6
Q

What is collective bargaining

A

The process of a trade union representative negotiating on behalf of the union members with the employers.

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7
Q

Claims/basis/triggers to negotiate

A

Increase in cost of living - real income decreasing
Workers in similar conditions receiving higher wages
Increase in company’s profits
Increased productivity of workers

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8
Q

What is industrial action

A

Measures taken by trade union members as a result of a major disagreement or dispute with their employers

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9
Q

When can industrial action be taken

A

After collective bargaining occurs and claims are presented

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10
Q

Types of industrial action

A
Strikes
Work to rule 
Go-slow
Sitting in
Overtime ban
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11
Q

What is strike action

A

Workers refuse to work, and could protest outside the workplace to stop deliveries and stop un-unionized workers from getting in

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12
Q

What is work to rule

A

Workers deliberately slow down production, and only do the bare minimum of the job so that they don’t get fired and pay doesn’t get withheld.

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13
Q

What is sitting in

A

Similar to strikes, except workers show up to work but don’t do any work.

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14
Q

What is go-slow

A

Carrying out tasks deliberately slowly to reduce production.

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15
Q

What is over-time ban

A

Workers refuse to work any longer than their normal hours.

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16
Q

How does industrial action impact the business

A

Loss of output
Image and reputation of company may take a hit
Could loose important customers to rival firms

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17
Q

How does industrial action impact the employees

A

Will not be paid wages or salary.

May get fired

18
Q

How does industrial action impact the customers

A

May be unable to obtain goods and services from the firm

May have to pay higher prices if firms pass on the increased costs.

19
Q

What is arbitration

A

A process where an arbitrator settles disputes between the trade union and employer

20
Q

Who is an arbitrator and how are they selected and what to they do

A

Neutral third party who has to be agreed upon by both parties who’s job is to resolve the dispute between the trade union and the employer by making both of the parties comprise and come to an agreement.

21
Q

Factors that influence the strength of trade unions

A

Number of members
Growth of manufacturing jobs
Higher costs of living - more members - more strength

22
Q

Why trade union strength may decline

A

Decline in manufacturing jobs
Increase in entrepreneurs - self employed
Increase in living standards - need for joining a union reduces
Growth in part time employees

23
Q

What is a closed shop

A

Have to join the trade union in order to join the firm. Helps trade unions gain more power.

Illegal in most countries now

24
Q

Open shop

A

Employees can chose if they want to be in the union or not

25
Q

Single union

A

One union to represent all the types of workers at the same organisaiton

26
Q

What are the types of t rade unions at a firm

A

Closed shop
Open shop
Single union

27
Q

Who does a general union represent

A

Represent workers from different occupations and industries

28
Q

Industrial union represents who

A

Represent workers in the same industry.

29
Q

craft union represents who

A

Represent workers with the same skills across several industries

30
Q

non-manual/white collar union represents who

A

Represents workers in non-industrial and professional occupations

31
Q

Advantages of a single union

A

Time is saved since only negotiating with one union

Avoids disputes between unions themselves

Easier to implement changes in working practices through one union

Close relationship with one union can help reduce industrial disputes

32
Q

What is unofficial industrial action

A

Workers take industrial action without the backing of the union

33
Q

What is official industrial action

A

Workers take industrial action with the backing of their trade union

34
Q

Impacts of unionization on the economy

A

Reputation may go down - firms may chose to settle elsewhere if unions too powerful and industrial action takes place freq. Increases unemployment and lower incomes.

35
Q

Benefits of trade unions for workers

A

Protect wages + other benefits
better working conditions
prevent discrimination
training + educational courses

36
Q

Benefits of trade unions for firms

A

Maintain and protect skill lvls of all employees at firm

Provide a single point of contact to negotiate with - sames time and more convient to negotiate

37
Q

Benefits of trade unions for govts

A

Single point of contact to discuss economic issues and employment laws

help reduce inequality in society by raising the wages of low paid workers

help raise productivity (training etc) - help boost output economic growth

improve mobility of workers in the economy.

38
Q

Disadv of trade unions for workers

A

Payment of weekly or monthly membership fees

High skilled individual workers who deserve higher wages cant negotiate separately

If it is a closed shop/single Union then employee has no choice but to join it

39
Q

disadv of trade unions for firms

A

less control over who they can hire and dismiss.

Industrial action could be very disruptive to the firm’s output. Could be detrimental to reputation

40
Q

Disadv of trade unions to govts

A

If trade unions push wages up - demand for labour reduces and unemployment would increase. Govt has to pay for more welfare benefits - OC

Could contribute to rising inflation (cost-push)

Industrial action leads to a loss of output - reduces economic growth

Reputation of economy takes a hit - discourages foreign firms to enter the country - lose potential output and economic growth.