Chapter-19 Flashcards
Trade unions (9 cards)
What is a trade union?
A trade union is an association that represents the interests of a group of workers.
What are the four main types of trade unions?
i) Craft unions: Represent skilled workers (e.g. plumbers).
ii) General unions: Include workers with various skills from different industries.
iii) Industrial unions: Represent all workers in a specific industry (e.g. rail).
iv) White collar unions: Represent professional workers (e.g. teachers, pilots).
What is collective bargaining?
When worker representatives negotiate pay and conditions with employers’ associations.
What are some arguments trade unions use to demand wage increases?
i) Increased productivity: Workers are producing more and deserve higher pay.
ii) Higher profits: Firms can afford to share profits through wage rises.
iii) Comparability: Wages should keep pace with similar jobs (e.g. nurses vs doctors).
iv) Cost of living: Wages need to rise with inflation to maintain real income.
What is real income?
Income adjusted for inflation, showing the actual purchasing power.
What factors increase the power of a trade union?
i) High economic activity: Firms can afford better pay when business is good.
ii) Large membership: More members mean more funds and bargaining power.
iii) High skill level: Skilled workers are harder and costlier to replace.
iv) Consistent product demand: Essential goods/services strengthen union influence.
v) Favorable laws: Legal support for union action boosts their power.
What is industrial action?
When workers disrupt production to pressure employers to agree to their demands.
What is a strike?
When a group of workers stop working to pressure an employer to agree to their demands.
What are the three main ways to measure strike action?
i) Number of strikes
ii) Number of workers involved
iii) Number of working days lost
