3.4 Trade Unions Flashcards
What is a trade union
An organization which aims to protect the interests of its members
Employee objectives
Working conditions - safe and hygienic
Secure pay and job
Increase in pay/wages/salary
Maximizing monetary and non-monetary benefits.
Employer objectives
Maximizing profits and sales
Minimizing costs
general types of trade unions
Craft
Industrial
General
White collar/professional association
Functions/roles of the trade union
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
What is collective bargaining
The process of a trade union representative negotiating on behalf of the union members with the employers.
Claims/basis/triggers to negotiate
Increase in cost of living - real income decreasing
Workers in similar conditions receiving higher wages
Increase in company’s profits
Increased productivity of workers
What is industrial action
Measures taken by trade union members as a result of a major disagreement or dispute with their employers
When can industrial action be taken
After collective bargaining occurs and claims are presented
Types of industrial action
Strikes Work to rule Go-slow Sitting in Overtime ban
What is strike action
Workers refuse to work, and could protest outside the workplace to stop deliveries and stop un-unionized workers from getting in
What is work to rule
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.
What is sitting in
Similar to strikes, except workers show up to work but don’t do any work.
What is go-slow
Carrying out tasks deliberately slowly to reduce production.
What is over-time ban
Workers refuse to work any longer than their normal hours.
How does industrial action impact the business
Loss of output
Image and reputation of company may take a hit
Could loose important customers to rival firms
How does industrial action impact the employees
Will not be paid wages or salary.
May get fired
How does industrial action impact the customers
May be unable to obtain goods and services from the firm
May have to pay higher prices if firms pass on the increased costs.
What is arbitration
A process where an arbitrator settles disputes between the trade union and employer
Who is an arbitrator and how are they selected and what to they do
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.
Factors that influence the strength of trade unions
Number of members
Growth of manufacturing jobs
Higher costs of living - more members - more strength
Why trade union strength may decline
Decline in manufacturing jobs
Increase in entrepreneurs - self employed
Increase in living standards - need for joining a union reduces
Growth in part time employees
What is a closed shop
Have to join the trade union in order to join the firm. Helps trade unions gain more power.
Illegal in most countries now
Open shop
Employees can chose if they want to be in the union or not
Single union
One union to represent all the types of workers at the same organisaiton
What are the types of t rade unions at a firm
Closed shop
Open shop
Single union
Who does a general union represent
Represent workers from different occupations and industries
Industrial union represents who
Represent workers in the same industry.
craft union represents who
Represent workers with the same skills across several industries
non-manual/white collar union represents who
Represents workers in non-industrial and professional occupations
Advantages of a single union
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
What is unofficial industrial action
Workers take industrial action without the backing of the union
What is official industrial action
Workers take industrial action with the backing of their trade union
Impacts of unionization on the economy
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.
Benefits of trade unions for workers
Protect wages + other benefits
better working conditions
prevent discrimination
training + educational courses
Benefits of trade unions for firms
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
Benefits of trade unions for govts
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.
Disadv of trade unions for workers
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
disadv of trade unions for firms
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
Disadv of trade unions to govts
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.
