Trade Unions

Question 1

Graphically, what does a trade union (pushing for higher wages) in a monopsony look like?

Answer 1

Question 2

1 What determines the success of trades unions?

Answer 2

The density (% of the workforce in the trade union)

Question 3

2 What determines the success of trades unions?

Answer 3

Bargaining power of workers, e.g. power plant workers have more economic leverage than supermarket shelf stackers.

Question 4

3 What determines the success of trades unions?

Answer 4

Economic climate – is the firm highly profitable or struggling to survive?

Question 5

4 What determines the success of trades unions?

Answer 5

Government legislation. e.g. since the 1970s, UK government has reduced the power of trades unions, e.g. abolishing closed shops, outlawing secondary picketing

Question 6

5 What determines the success of trades unions?

Answer 6

Nature of labour markets – competitive vs monopsony

Question 7

Do trades unions increase economic welfare?

Answer 7