3.4 Trade Unions

Question 1

What is a trade union

Answer 1

An organization which aims to protect the interests of its members

Question 2

Employee objectives

Answer 2

Working conditions - safe and hygienic
Secure pay and job
Increase in pay/wages/salary
Maximizing monetary and non-monetary benefits.

Question 3

Employer objectives

Answer 3

Maximizing profits and sales

Minimizing costs

Question 4

general types of trade unions

Answer 4

Craft
Industrial
General
White collar/professional association

Question 5

Functions/roles of the trade union

Answer 5

Negotiate with employers
Safety at work
Sufficient training for workers 
Legal advice 
Support members
Persuade govt.
Encourage firms for employees in decision making process

TGL SND

Question 6

What is collective bargaining

Answer 6

The process of a trade union representative negotiating on behalf of the union members with the employers.

Question 7

Claims/basis/triggers to negotiate

Answer 7

Increase in cost of living - real income decreasing
Workers in similar conditions receiving higher wages
Increase in company’s profits
Increased productivity of workers

Question 8

What is industrial action

Answer 8

Measures taken by trade union members as a result of a major disagreement or dispute with their employers

Question 9

When can industrial action be taken

Answer 9

After collective bargaining occurs and claims are presented

Question 10

Types of industrial action

Answer 10

Strikes
Work to rule 
Go-slow
Sitting in
Overtime ban

Question 11

What is strike action

Answer 11

Workers refuse to work, and could protest outside the workplace to stop deliveries and stop un-unionized workers from getting in

Question 12

What is work to rule

Answer 12

Workers deliberately slow down production, and only do the bare minimum of the job so that they don’t get fired and pay doesn’t get withheld.

Question 13

What is sitting in

Answer 13

Similar to strikes, except workers show up to work but don’t do any work.

Question 14

What is go-slow

Answer 14

Carrying out tasks deliberately slowly to reduce production.

Question 15

What is over-time ban

Answer 15

Workers refuse to work any longer than their normal hours.

Question 16

How does industrial action impact the business

Answer 16

Loss of output
Image and reputation of company may take a hit
Could loose important customers to rival firms

Question 17

How does industrial action impact the employees

Answer 17

Will not be paid wages or salary.

May get fired

Question 18

How does industrial action impact the customers

Answer 18

May be unable to obtain goods and services from the firm

May have to pay higher prices if firms pass on the increased costs.

Question 19

What is arbitration

Answer 19

A process where an arbitrator settles disputes between the trade union and employer

Question 20

Who is an arbitrator and how are they selected and what to they do

Answer 20

Neutral third party who has to be agreed upon by both parties who’s job is to resolve the dispute between the trade union and the employer by making both of the parties comprise and come to an agreement.

Question 21

Factors that influence the strength of trade unions

Answer 21

Number of members
Growth of manufacturing jobs
Higher costs of living - more members - more strength

Question 22

Why trade union strength may decline

Answer 22

Decline in manufacturing jobs
Increase in entrepreneurs - self employed
Increase in living standards - need for joining a union reduces
Growth in part time employees

Question 23

What is a closed shop

Answer 23

Have to join the trade union in order to join the firm. Helps trade unions gain more power.

Illegal in most countries now

Question 24

Open shop

Answer 24

Employees can chose if they want to be in the union or not

Question 25

Single union

Answer 25

One union to represent all the types of workers at the same organisaiton

Question 26

What are the types of t rade unions at a firm

Answer 26

Closed shop Open shop Single union

Question 27

Who does a general union represent

Answer 27

Represent workers from different occupations and industries

Question 28

Industrial union represents who

Answer 28

Represent workers in the same industry.

Question 29

craft union represents who

Answer 29

Represent workers with the same skills across several industries

Question 30

non-manual/white collar union represents who

Answer 30

Represents workers in non-industrial and professional occupations

Question 31

Advantages of a single union

Answer 31

Time is saved since only negotiating with one union Avoids disputes between unions themselves Easier to implement changes in working practices through one union Close relationship with one union can help reduce industrial disputes

Question 32

What is unofficial industrial action

Answer 32

Workers take industrial action without the backing of the union

Question 33

What is official industrial action

Answer 33

Workers take industrial action with the backing of their trade union

Question 34

Impacts of unionization on the economy

Answer 34

Reputation may go down - firms may chose to settle elsewhere if unions too powerful and industrial action takes place freq. Increases unemployment and lower incomes.

Question 35

Benefits of trade unions for workers

Answer 35

Protect wages + other benefits better working conditions prevent discrimination training + educational courses

Question 36

Benefits of trade unions for firms

Answer 36

Maintain and protect skill lvls of all employees at firm Provide a single point of contact to negotiate with - sames time and more convient to negotiate

Question 37

Benefits of trade unions for govts

Answer 37

Single point of contact to discuss economic issues and employment laws help reduce inequality in society by raising the wages of low paid workers help raise productivity (training etc) - help boost output economic growth improve mobility of workers in the economy.

Question 38

Disadv of trade unions for workers

Answer 38

Payment of weekly or monthly membership fees High skilled individual workers who deserve higher wages cant negotiate separately If it is a closed shop/single Union then employee has no choice but to join it

Question 39

disadv of trade unions for firms

Answer 39

less control over who they can hire and dismiss. Industrial action could be very disruptive to the firm's output. Could be detrimental to reputation

Question 40

Disadv of trade unions to govts

Answer 40

If trade unions push wages up - demand for labour reduces and unemployment would increase. Govt has to pay for more welfare benefits - OC Could contribute to rising inflation (cost-push) Industrial action leads to a loss of output - reduces economic growth Reputation of economy takes a hit - discourages foreign firms to enter the country - lose potential output and economic growth.