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    Week1to3 Trade Unions

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    Josephine Munga

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    © All Rights Reserved
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    Week1to3 Trade Unions

    Uploaded by

    Josephine Munga
    8 views8 pages

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
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    8 views8 pages

    Week1to3 Trade Unions

    Uploaded by

    Josephine Munga

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 8

    BEDIR INTERNATIONAL SCHOOL

    2022/2023 ACADEMIC YEAR


    ECONOMICS
    FORM 3

    PRESENTED TO: BEDIR STUDENTS FORM 3 CLASS (TERM 2-2022/2023)

    PRESENTED BY: MR. KEFA MWALE

    SECTION 3: MACROECONOMIC DECISION MAKERS


    WEEK 1 to 3

    TOPIC: TRADE UNIONS


    A trade union (or labour union) is an organization that exists to protect
    the rights of workers.
    Functions/roles of trade union
     Negotiating wages & benefits with employers
     Defending employee rights and jobs
     improving working conditions
     Improving pay and other benefits, including holiday entitlement, sick
    pay and pensions
     Encouraging firms to increase worker participation in business
    decision-making
     Developing skills of union members, by providing training and
    education courses
     supporting members taking industrial action

    Types of Trade Unions


    General Unions: represent workers across many different
    occupations
    Industrial Unions: represent workers of the same industry
    Craft Unions: represent workers with the same skill across different
    industries
    Non-manual unions/Professional unions: represent workers in non-
    industrial and professional occupations
    Why will workers make wage claims?
     Workers working harder and have increased productivity
     The firm is making higher profits
     Maintain wage differentials e.g. if a Nurse gets paid 60% the
    Doctor’s pay, and the Doctor’s get a pay rise, Nurses will want a pay
    rise to be back at 60% and restore the differential.
     Keep up with the cost of living (inflation).
    Collective Bargaining – is the process of negotiating wages and other
    working conditions between union members and employers.
     Collective bargaining exists as individual employees may not have
    the skill, time, willingness or bargaining power to negotiate with
    employers
    Factors affecting the strength of a trade union
    Number of members – more members means more funds to
    finance activities
    High level of output and activity – when output and incomes are
    high, firms compete for existing workers. Therefore they are more
    willing to agree to union requests.
    High level of skills – unions representing skilled workers are in a
    better negotiating position as it is costly to replace skilled labour
    Consistent demand for the product – unions representing workers
    who produce goods and services essential to consumers and where
    there are few substitutes in a strong bargaining position.
    High level of public support – if the public supports employees,
    the firm may lose credibility
    Arbitration – needed when trade unions and employers fail to
    resolve a dispute. The Government of an independent third party
    will join negotiations.
    Benefits of a Trade Union to employers
    Short Time Consumption – it is cheaper for firms to negotiate
    with a union than with individual workers as it is less time
    consuming
    Increase in Productivity – Unions encourage workers to
    undertake education and training. This encourages productivity.
    Reduction in Conflict – provided outlets for workers to channel
    their anger.
    Advantages of Trade Unions
    about minimum working standards
    higher
    Employment/enhanced job security
    uld lead to improvement in health and safety
    Disadvantages of Trade Unions
    flexibility in working practices
    as fashions change very quickly
    going out of business
    redundant
    union membership fees
    Industrial Action is any deliberate act to disrupt the operations of a
    -

    firm in order to force the management to negotiate better terms and


    conditions of employment, e.g. strike, a sit-in
     Industrial action is taken when collective bargaining fails to result
    in an agreement
     Taking industrial action can help a union force employers to agree
    to their demands
    Types of Industrial actions
    Overtime ban: is when workers refuse to work more than their
    normal hours
    Work to rule: is when workers literally work to fulfil the minimum
    requirements of their job and do nothing outside what is written in
    their contract of employment.
    Go slow: is when workers deliberately work slowly to reduce
    production.
    Strike: is when workers withdraw their labour services by refusing
    to work.
    Is when workers protest outside their workplace to stop
    deliveries/non-unionized workers from entering
    Sit-in: is when workers turn up to work and occupy the premises but
    do not undertake their normal work
    Stay-away: is when workers stay home without reporting to work.
    Effects of Industrial Action on Firms

    i. Higher costs, less output, less revenue and lower profits


    ii. Lose customers to rival firms
    iii. Damages the firm’s reputation
    Effects of Industrial Action on Union Members

    i. Employees will lose pay and may even lose their jobs due to a
    decrease in demand for their product caused by losing
    customers
    Effects of Industrial Action on Consumers
    i. Unable to obtain goods and services they need
    ii. Pay higher prices if firms pass on their increased costs
    Union Influence the Supply of Labour
    Unions can restrict the entry of new workers by insisting that new
    workers have high qualifications or skills

    Closed Shop – all workers in a place of work must belong to a


    trade union. This is outlawed in a number of countries.

    Open Shop – where firms are able to employ workers that are or
    are not involved in a trade union.

    Single-union Agreement – where a firm agrees a single union can


    represent all its workers. Because this will give considerable
    bargaining power to a union, a firm will only agree to this in return
    for commitments by the union on pay, productivity improvements
    and not to strike.
    Possible reasons for increasing trade union membership in some
    countries include:

    • growth in manufacturing jobs, as manufacturing industry is


    typically unionized
    • an increasing number of workers experiencing low pay and poor
    working conditions in manufacturing
    • an increasing wealth gap and higher costs of living, which have
    caused workers to petition for higher wages and better working
    conditions.

    Possible reasons for declining trade union membership in some


    countries include:
    • changing government legislation, which seeks to reduce union
    influence
    • a decline in manufacturing, which is traditionally unionised
    • growth in part-time employment, as part-time workers are less
    likely to join a trade union
    • firms independently agreeing fair terms and conditions with their
    employees without negotiating with trade unions
    • an increase in unemployment
    • an increase in employment in small firms, as it is more difficult to
    organise unions within such firms
    • An increase in the number of self-employed people (people who
    work for themselves and not for a firm), who are therefore not trade
    union members.

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