Workers and Trade Unions Flashcards
Name wage factors (4)
wages
overtime pay
bonuses
commision
Define earnings
total pay received by worker
Define wage rate
wage worker receives per unit of output/time
Define a time rate system
wages based on number of hours worked
Define a piece rate system
wages based on amount workers produce
Define overtime pay
pay to workers that work more than usual working week
Benefits of overtime pay (3)
employers can respond to higher demand without hiring new workers
employees can earn more
easier for employers to reduce overtime than fire workers
Disadvantages of overtime pay (3)
workers may become tired
productivity may decrease
product quality may decrease
Define a bonus
extra payment
Purpose of bonuses (2)
reward workers who contribute to higher profits
provide incentive for workers
Disadvantages of bonuses
can cause resentment for not receiving bonus
Define commision
workers receive proportion of sales value they make
Name non-wage factors (6)
Job satisfaction
Type of work
Working conditions
Fringe Benefits
Job security
Career prospects
Define fringe benefits
benefits provided to workers by employers
Examples of fringe benefits (3)
meals
healthcare
leisure facilities
Define job security
how easily workers are likely to become redundant
Name limiting factors of jobs (6)
opportunity cost
education/qualifications
poverty
discrimination
age
physical ability
Unskilled workers are paid more than skilled workers
True or False?
False
Determinants for demand of workers (5)
productivity
price of output
cost of capital
demand of product
size/profitability of firm
Determinants of wages (5)
demand and supply
Bargaining power of workers
Government Policies
Public opinion
Discrimination
Name government policies/actions that can change wage rates (5)
National Minimum Wage
improved education
immigration policies
anti-discrimination laws
technology
Causes of changes in the supply of labour (5)
change in labour force
change in qualifications to do job
degree of risk
change in non-wage benefits of job
change in (non)wage benefits of other jobs
Why may wages change over time? (6)
Change in demand/supply of labour
Changes in stages of production
Changes in bargaining power
Changes in government policy
Changes in public opinion
Changes in individuals earnings over time
Primary sector workers are generally paid less than secondary and tertiary sector workers
True or False?
True
Why are workers paid less in the primary sector
workers have less skills/qualifications
Define the primary sector (2)
extraction/collection of raw materials
first stage of production
Examples of primary sector industries (3)
agriculture
mining
fishing
Define the secondary sector
processing of raw materials into finished/semi-finished goods
Examples of secondary sector industries (3)
clothing
steel
electronics
Define the tertiary sector
producing services
Examples of the tertiary sector (3)
banking
tourism
hospitality
How does education increase wage rate
increases their demand as they are now more skilled
Define elasticity of demand for labour
responsiveness of demand of labour to change in wage rate
Define elasticity of supply of labour
responsiveness of supply of labour to change in wage rate
Determinants for elasticity of demand for labour (4)
proportion of labour costs in total costs
ease of labour to be substituted for capital
elasticity of demand for product produced
time period
Determinants of elasticity of supply of labour (5)
qualifications/skills required
level of employment
mobility of labour
degree of vocation (attachment)
time period
Why is demand for labour more elastic in the long run
more time for firms to change production methods
Why is supply for labour more elastic in the long run (2)
more time for workers to notice change in wages rate
more time for workers to gain qualifications
Define specialisation
concentration on particular products/tasks
Define division of labour
workers specialising in particular tasks
Advantages of division of labour (5)
workers become very good at doing same task over and over again
trained more efficiently
less time consumed as workers don’t have to move from one job to another
can earn high wages from their skills being in high demand
workers can pursue their specific interests
Disadvantages of division of labour (4)
workers can get bored
workers may not put in effort and make mistakes
specialised workers are occupationally immobile as they are only trained for one job - may be difficult for them to get another job
more difficult to replace specialised workers
Define trade union
associations of workers formed to represent their interests
Name the 4 main types of trade unions
Craft Unions
General Unions
Industrial Unions
White collar unions
Define craft unions (2)
represent workers with particular skills
e.g plumbers and weavers
Define general unions
represent workers with a range of skills/industries
Define industrial unions
represent workers in a particular industry
Define white collar unions
represent particular professions
Functions of trade unions (4)
negotiate for higher wages
negotiate for more job security
negotiate for better working conditions
negotiate for more fringe benefits
Define collective bargaining
representative of workers negotiating with employers’ associations
Arguments trade unions put up (4)
increases productivity
firms with increased profits can afford higher wages
workers should receive pay rise to keep pay in line with similar workers
workers need high pay to match higher cost of living
Define real income
income adjusted for inflation
Factors affecting strength of trade union (6)
level of economic activity
profitability
proportion of firm’s labours which are unionised
level of skill of job
level of consistent demand for product produced by workers
whether government legislation is favourable
Define industrial action
workers disrupting production to put pressure on employers to agree to their demands
Define strike
workers not working to put pressure on employer to agree to their demands
Define “work to rule”
workers undertaking tasks required by their contracts
How can strike action be measured (3)
number of strikes
number of workers involved
number of working days lost
Define an official strike
strike approved/organised by trade union
Define an unofficial strike
strike not approved by trade union
Benefits of trade union membership (4)
provide communication between workers and firms
improve productivity
reduce conflict
decreased labour turn over
Disadvantages of trade union membership (2)
firms harmed by industrial action
strikes can decrease productivity
What might trade unions pressure governments about (4)
political representation of workers
maternity/paternity rights
minimum wage
tax breaks for low income workers
Name types of industrial action (4)
strike
protest outside workplace/in public places
“go start”
“work to rule”
Define a “go start”
working deliberately slowly
Define “derived demand”
demand for workers comes from demand of goods produced
