Trade Unions

Question 1

What is a trade union?

Answer 1

A trade union or labor union is an organization of workers formed to promote and protect the wages, benefits, and working conditions of its members.

Question 2

Why do workers join trade unions?

Answer 2

Strength in numbers: They will be listened to in a group. Power shifts from management to workers.
To negotiate better: Pay, Holidays, Fewer work hours, Improved pensions.
Healthier, safer working conditions.
Improved benefits for redundant workers.
Advice, Financial support, and welfare activities.

Question 3

What are the different kinds of Industrial actions?

Answer 3

Strike
Picketing
Work to rule
Go slow
Non-cooperation
Overtime ban

Question 4

What is a strike?

Answer 4

When employees refuse to work

Question 5

What is picketing?

Answer 5

When employees stand outside the workplace and prevent the smooth functioning of the firm. eg. Stop the movement of trucks in and out of a factory.

Question 6

What is work to rule?

Answer 6

It is when to work purposely follows all the rules in order to delay the progress of the work.

Question 7

What is going slow?

Answer 7

It is when employees work at a very slow pace.

Question 8

What is non-cooperation?

Answer 8

It involves workers refusing to follow a new procedure or rule.

Question 9

What is an overtime ban?

Answer 9

It is when employees refuse to work overtime or for additional hours of work apart from their normal hours.

Question 10

What are the aims of trade unions?

Answer 10

Increase wages of members
Improve working conditions
To agree a certain number of hours to be worked each week.
Support members who have problems with managers.
Extra benefits for workers, pensions
Developing skills of unions workers, training programs
Improving employment legislation

Question 11

Reasons why unions seek to improve wages and working conditions

Answer 11

Price inflation is high and rising
other groups of workers have received pay rises
New machinery or working practices have been introduced
The productivity of their members has increased.
The profits of the employing organization have increased.

Question 12

How do trade unions achieve their aims?

Answer 12

Negotiations with managers, ie general discussions
Industrial action, e.g strike
Help and pay to represent workers in court or legal battles.

Question 13

What is collective bargaining?

Answer 13

The process of negotiating wages and other working conditions between trade unions and employers.

Question 14

What is arbitration?

Answer 14

It may be necessary to settle industrial disputes. This involved employers and unions agreeing to let an independent referee, often a senior government official or lawyer, help them reach an agreement.

Question 15

What are the pros of a strike?

Answer 15

Has an immediate effect as production halts, e.g train stops running if drivers strike.
Businesses suffer and have to take notice-loss of sales revenue.
May get coverage on TV or in the newspapers- businesses will not want negative media attention.

Question 16

What are the cons of a strike?

Answer 16

May cause anger from the general public/ costumers e.g train passengers.
Workers don’t get paid on strike.
Notice has to be given otherwise it is illegal.

Question 17

What does the overall effect of the strike depend on?

Answer 17

The percentage of the workforce willing to strike.
The support from the general public
The strength of the management to battle it out.

Question 18

What are the factors influencing the strength of trade unions?

Answer 18

Growth in manufacturing jobs- often unionized as workers typically receive low pay and have poor working conditions.
A widening wealth gap and higher costs of living- cause workers to petition for higher wages and better working conditions.

Question 19

Reasons for declining trade union membership?

Answer 19

Government legislation reducing the trade union influence.
A decline in manufacturing jobs.
Growth in part-time workers, as they generally do not join trade unions.
An increase in unemployment
An increase in employment in small firms
An increase in the number of self-employed people
A growing number of firms independently agreeing to fairer terms and conditions of employment. ie corporate social responsibility

Question 20

Advantages of trade unions

Answer 20

Trade unions help in resolving conflicts between employers and employees.

Acts as a channel of communication between employers and employees
Offer legal support and advice to employees
Negotiate on behalf of their members with employers for better pay and working conditions
Negotiate with the government for an increase in the minimum wage
Improvements in working conditions lead to a better-motivated work-force

Question 21

Disadvantages of trade unions

Answer 21

Trade unions may create rifts between employers and employees.

Industrial action may result in lost productivity
Strikes may cause serious disruption to the wider economy
Workers do not get paid when they do not work, so they lose wages and earnings. Living standards fall.
Trade unions increase the costs to firms and reduced profits.