3.4 - Trade Unions

Question 1

Trade union

Answer 1

An organised association of workers in a trade, group of trades, or profession, formed to protect and further their rights and interests

Question 2

Collective bargaining

Answer 2

The process of negotiating over pay and working conditions between trade unions and employers

Question 3

What have trade unions done for us? (name 3)

Answer 3

• two day weekends
• eight-hour working days
• maternity leave
• retirement ages
• paid holidays

Question 4

Closed shop

Answer 4

A trade union membership is a compulsory condition of taking the job
- outlawed in many country as it can give the trade union too much power over the employer

Question 5

Open shop

Answer 5

A firm can employ both unionised and non-unionised labour

Question 6

Single union agreement

Answer 6

An employer agrees to a single union representing all its employees

Question 7

The role of trade unions (name 2)

Answer 7

• Defending employees’ rights and jobs
• Improving working conditions, such as securing better hours of work and better health and safety policies
• Improving pay and other benefits, including holiday entitlement, sick pay and pensions
• Developing the skills of union members, by providing training and education courses

Question 8

When and why do trade unions take action? (name 3 cases)

Answer 8

• Price inflation in the economy
• Pay rises in related industries
• Labour productivity of members has increased
• Firms are unfairly dismissing members
• A death occurs in the workplace
• The profits of the business has increased

Question 9

Industrial dispute

Answer 9

When collective bargaining fails & discussions break down, trade unions have several methods of forcing employers/governments to continue engaging with the through industrial dispute

Question 10

Overtime ban (industrial action)

Answer 10

Workers refuse to work more than their normal hours

Question 11

Work to rule (inustrial action)

Answer 11

Workers deliberately slow down production by complying rigidly with every rule and regulation

Question 12

Go-slow (industrial action)

Answer 12

Workers carry out tasks deliberately slowly to reduce production

Question 13

Strike (industrial action)

Answer 13

Workers refuse to work and may also protest outside their workplace to stop deliveries and prevent non-unionised workers from entering

Question 14

Impacts of industrial action (name 3)

Answer 14

• labour costs for firms will increase if wage costs increase after strike action
• output will reduce, supply will decline
• the revenue would also decrease due to the lack of working employees
• if the dispute was successful, their salaries should increase

Question 15

Advantages of trade unions for workers (name 2)

Answer 15

• they protect jobs and security
• and working conditions
• can dictate wages and non-monetary benefits
• they prevent discrimination and exploitation
• they ensure training and educations opportunities

Question 16

Disadvantages of trade unions for workers (name 2)

Answer 16

• have to pay a monthly fee for membership
• may be rejected from some firms because they are a part of a union
• trade unions may discourage individuality
• solely thinking as a group, never individually

Question 17

Advantages of trade unions for firms (name 2)

Answer 17

• by creating a safer and more welcoming environment to employees, trade unions can increase labour productivity
• empowerment in the workplace improves employee motivation and produce
• employee training increases efficiency
• decreases costs

Question 18

Disadvantages of trade unions for firms (name 2)

Answer 18

• since unions are included in workplace decisions, the time taken to implement changes increases
• trade union demands can increase salary and costs of production: destabilising revenue
• long employee vacations detrimentally decrease produce

Question 19

Advantages of trade unions for the government (name 2)

Answer 19

• unions can aid a more equal and prosperous status to the country’s economy
• if a firm’s profit increases due to increased productivity; government receive more corporation tax
• higher wages caused by trade unions mean that workers pay more income tax

Question 20

Disadvantages of trade unions for the government (name 2)

Answer 20

• industrial dispute is often very disruptive
• especially striker in essential labour markets
• government my find difficulty in attracting global frenchise businesses to invest in their country if industrial action is frequent