Chapter 19: Trade Unions Flashcards
Types of trade unions
Craft unions
General unions
Industrial unions
White collar unions
Types of trade unions: Craft unions
Represent workers with particular skills, for example, plumbers and weavers. These workers may be employed in a number of industries.
Types of trade unions: General unions
Includes workers with a range of skills and from a range of industries.
Types of trade unions: Industrial unions
Seek to represent all the workers in a particular industry, for example, those in the rail industry.
Types of trade unions: White-collar unions
Represents particular professions, including pilots and teachers.
The roles of trade unions
To negotiate on behalf of their members on wages, job security, working hours, and working conditions. These areas can include basic pay, overtime payments, holidays, health and safety, promotion prospects, maternity and paternity rights, and job security. Depending on the circumstances, unions may be trying to
protect or improve workers’ rights.
Collective bargaining
If an individual worker asked for higher pay the answer is likely to be no, the worker would be seen as “difficult/demanding”, Influence other workers, and could be fined.
If lots of workers asked for higher pay, firms cannot blame it on one individual and the employer cannot fire a large proportion of the workforce.
Industrial action
Worker actions which disrupt production in order to put pressure on employers to meet their demands. Examples include:
-Strike action (refusing to work)
-Protest outside workplace
-Work deliberately slow (“a go start”)
-Working the minimum work required by contract (“work to rule”)
Arguments trade unions can push for higher wages
Higher worker productivity:
- Firm is making more money from the workers, workers are more useful, productive, and valuable to a firm. therefore workers should be paid what they are worth.
Higher firm/industry profitability:
-Higher profit is from worker’s productivity, therefore they should be paid a portion of the profit they made
Inflation (higher prices = increased cost of living):
-Firms have to pay workers more to provide basic living standards as the cost of living increased
Comparability argument:
-Workers in similar professions have had a pay rise
-More senior or junior workers in the profession have had a pay rise and there is a need to maintain wage differentials
Factors affecting the strength of a trade union
Timing: Recession/boom:
-In a recession trade unions are likely to be less effective because firms are struggling
Profitability:
-If a firm is making large profits, trade unions are likely to be more effective. More money for workers.
Level of unemployment in the wider economy:
-If there is a high rate of unemployment, trade unions are likely to be less effective as they can be replaced easily because unemployed workers are likely to join
The proportion of a firm’s workers who are encouraged:
-If a very high proportion of a firm’s workers are unionised, they are likely to be more effective as their action is more effective.
The level of skill training and education required for the job:
-If skill requirements are high it is harder for firms to find replacements.
Whether legislation(law) are favourable to trade unions|:
-Are trade unions legal? is the right to organize a strike protected by the law?
-Are there legal restrictions on TV activity?
Trade unions: Advantages
Unions benefit workers (higher wages, better conditions, gives workers a voice)
Trade unions can actually benefit firms (better labor relations, more productivity, less labor turnover)
Trade unions can also benefit non-unionized workers (more pay, better working conditions)
Trade unions: Disadvantages
Firms are harmed by industrial action (lower productions -> less profit, go slow = increase in unit cost)
Harmful in industries like transport and education
Union members might feel forced to take part in industrial action that they don’t agree with and must lose wages if they go on strike
Trade unions benefit their members at the expense of other workers (higher wages = less demand for workers)
