TRADE UNIONS – 9th Mar.

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• LEARNING OBJECTIVE – Discuss the role of trade unions in an economy
• LESSON CONTENT –
• Starter – what is a trade union ?

• LESSON PROGRESSION – Define a trade union, identify and explain types of

trade unions and discuss the functions of trade unions.

• Home learning – Find a recent example of industrial action that has taken
place in a country of your choice and determine whether the action was
successful or not in achieving its aim.
TRADE UNIONS/labour unions
- A trade union an association which represents the
interests of a group of workers. It exists to negotiate
on behalf of their members.
Trade Unions

There are four types:

• Craft Unions – they represent workers with particular skills e.g.
plumbers and electricians working in different industries.
• General Unions – they represent workers with a range of skills in a
range of industries
• Industrial Unions – they represent workers in a particular industry
e.g. railways
• White Collar Unions – represent professional workers e.g.
teachers, pilots
Functions of Trade Unions

• Negotiate wages and other non-wage benefits on behalf of their

members
• Provide education and training schemes
• Protect workers’ rights
• Provide recreational facilities
•Encourage firms to increase workers’ participation in business
decision making.
•Influence government policy and employment legislation.
•Improve working conditions.
Collective bargaining

• Trade unions act as a means of communication and negotiation

between employers and employees.

• Trade union representatives negotiate on behalf of workers with

employers for better pay and conditions of work.
Collective bargaining & wage claims? – when do workers ask
for wage increases?

• When there is increase productivity of labour

• when there is increased profits of the firm or industry
• to maintain wage differentials – workers in comparable
occupations have received a wage increase
• When there is a rise in the cost of living (inflation).