19.

Trade Unions
 What is the need of a Trade Union?

Maximize
profits Work in safe and
healthy
environment

Membership
Subscription
Fee
Minimize costs Maximize
wages/salaries and
non wage benefits

Maximize sales
Job security

A trade union is an organization which aims to protect the interests of its worker
members i.e. their terms and conditions of employment, including pay.
Types of Trade Unions

Craft Industrial White General

Unions Unions Collar Unions
• Organize • All workers Unions • Membership
workers in an • Non manual open to all
according to industry workers like workers
skill professional, • large
• Engineers, administrativ number of
carpenters e and clerical unskilled
etc. staff workers
Roles and Responsibilities of a Trade Union
Bargain with
Ensuring safe
employer for better
working
pay and better terms
environment
and conditions

Legal advice to Support to workers

workers as required when redundant

Financial and legal Work with Govt. to

support when pass legislation in
dismissed unfairly interest of workers

Number of members Degree of Unity

 Collective bargaining and Wage claims

Basis of claims for higher wages

Wage rise in
Rise in cost of living comparable
occupations

Increase in
Increased profits of
productivity of
firm/industry
Labour

Collective bargaining is the process of trade union representatives negotiating on

behalf of their worker members with employer representatives for better pay and
conditions
 What is Industrial Action?
Industrial Definition Impact on employers Impact on workers
Action
Strike Trade Union workers stop Production on goods Workers lose wages
working and services stops =>
immediate impact on
profitability of firm

Work – to - Trade Union members May cause a slowdown Cannot be

rule work to fulfil minimum or decrease in disciplined as terms
requirements of their job productivity of contracts are
contracts – and that’s all being followed

Go- Slow Trade union workers Fall in productivity and Low morale
complete their work very efficiency
slowly
Sit in Trade union members Production on goods Workers lose wages
come to work, but do not and services stops =>
undertake their work immediate impact on
profitability of firm

Industrial Action refers to measures taken by trade union members as a result of

major disagreements or disputes with their employers.
 Trade Union memberships
Reasons for Increase
 Growth in manufacturing jobs
 Widening wealth gap
 Higher cost of living
Reasons for Decrease
 Decline in manufacturing jobs
 Government legislation to reduce the
power of trade unions
 Growth in part time jobs and self
employment
 Fairer terms and conditions of
employment (corporate social
responsibility)
 Rising unemployment
 Increase in employment in small firms
 Trade Union memberships and the Economy

Advantages Disadvantages
 Channel of communication between  Industrial action leading to lost
employers and employee productivity
 Improvement in standard of living  Disruption to firms and economy
 Motivated workforce and more  Reduction in profits because of
profitable firms increase in costs of production
 Reduce conflict and develop  Reduction in govt. tax revenues
improved industrial relations
 Improved labour productivity and
high employee motivation and
loyalty
 Legal support and advice in time of
need