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Trade Unions | O Level Economics 2281 & IGCSE Economics 0455 | Detailed Free Notes To Score An A Star (A*)

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  • Trade Unions
    • Organizations that have workers as members that ensure that workers interests and requirements are promoted
    • It focuses on gaining benefits for the customers and ensure their jobs become better
  • Functions of trade union
    • Non-wage benefits are negotiated
    • Employees’ rights are defended
    • Working conditions are improved
    • Pay and other benefits are collectively bargained
    • Discrimination and unfair dismissal issues dealt
    • Skill development of customers
    • Recreation for workers
    • Industrial actions taken
  • Collective bargaining
    • Where instead of a single person, a trade union negotiates on behalf of many workers which ensures that they have collective power
  • When is it possible for trade unions to negotiate better working conditions and wages?
    • Inflation so workers need more money to maintain their real income
    • Sales and demand of the firm has increased so it can afford more pay
    • Workers are getting better offer elsewhere
    • Member productivity has increased so they deserve more payment
  • Industrial disputes and issues
    • If a firm is unable to meet the requirements of trade unions, then their members can take different industrial actions
    • Overtime ban – no one will work overtime
    • Go-slow so they will work slowly and reduce output
    • Strike – they will refuse to work or protest at the workplace
      • This stops production
  • Benefits to workers
    • Better bargain when collectively bargaining
    • Unity and representation
    • Discrimination and exploitation reduces.
  • Problems to workers
    • Lesser wages if strike happens
  • Benefits to firm
    • Negotiation becomes easy instead of separately negotiating with everyone
    • Workers are organized efficiently
    • Business morale and productivity is high
  • Problems to firm
    • It can take time to make decisions
    • Demands can be very high and unreasonable
    • Wages can be high if collectively bargained
    • High costs and low output based on industrial actions
  • Economical benefits
    • Labor force is protected and not exploited
  • Problems to economy
    • Industrial action can reduce total economic output
    • If firms take action, people can get unemployed
    • International market competitiveness can reduce extensively and exports can become very expensive
  • Trade unions are less powerful today, firms can hire globally and cost reduction is a challenge for the firms already – therefore, trade unions focus on better working conditions now and fringe benefits.
Hunain Zia

Hunain Zia has previously achieved considerable success in the high-school educational stream, gaining a massive 154 Total A Grades and 7 Major Distinctions, a process in which he broke/ set 11 different world records, including the most A grades ever achieved, most subjects ever appeared in, most distinctions, gaining distinctions across two separate boards (Pearson Edexcel and CAIE) within the same year/ ever, and even 19 hours of constant examination. All records stand intact today. Hunain pursued his Honors Accounting Degree from the prestigious Bentley University, and then completed an LLB (in Honors) from University of London. Currently, he manages multiple social and commercial projects, has founded digital streams and works tirelessly in the education sector.

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