IGCSE ECONOMICS NOTE-What is a Trade Union?

What is a Trade Union?

A trade union or labour union is an organization of workers who have banded together to achieve common goals in key areas such as wages, hours, and working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with employers. This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, workplace safety and policies.

A rally of the trade union UNISON in Oxford during a strike Copyright © 2006 Kaihsu Tai

Find out more about Trade Unions in your country.

Click here to view an elaborate list of trade unions in different countries.

Read about Trade Union Congress (TUC) in UK

Types of Industrial Actions

• Strike: when employees refuse to work
• Picketing: When employees stand outside the workplace and prevent the smooth functioning of the firm. E.g. they may stop the movement of Lorries in and out of factory.
• Work to Rule: It is when workers purposely follow all the rules in order to delay the progress of work.
• Go slow: It is when the employees work at a very slow pace.
• Non-cooperation: It involves workers refusing to follow a new procedure or rule.
• Overtime ban: It is when the employees refuse to work overtime or for additional hours of work apart from their normal working hours.

• Why do workers join trade unions?

  Workers might join a trade union because
  • They believe that there is strength in number and they will be listened to when they in a group.
  • To negotiate a better pay, more holidays and less hours of work.
  • To pressurise the employer to provide them with a healthier and safer working environment.
  • Improved benefits for retrenched workers
  • To get the benefits of advice, financial support and welfare activities carried out by Trade Unions.
  • Many workers may also join a trade union because there is a closed shop policy.

  Closed Shop

  It is where all employees must be a member of the same trade union.

  Single Union agreement

  It is an agreement between the management and workers, where the management deals with only one trade union and no other.

  Collective bargaining

  It means the negotiations between one or more trade unions and one or more employers on pay and conditions of employment.

  Productivity agreement

  It is an agreement between the management and workers whereby the management agrees to increase the benefits for workers in return for an increase in productivity.

• Why do workers join trade unions?

  Workers might join a trade union because
  • They believe that there is strength in number and they will be listened to when they in a group.
  • To negotiate a better pay, more holidays and less hours of work.
  • To pressurise the employer to provide them with a healthier and safer working environment.
  • Improved benefits for retrenched workers
  • To get the benefits of advice, financial support and welfare activities carried out by Trade Unions.
  • Many workers may also join a trade union because there is a closed shop policy.

  Closed Shop

  It is where all employees must be a member of the same trade union.

  Single Union agreement

  It is an agreement between the management and workers, where the management deals with only one trade union and no other.

  Collective bargaining

  It means the negotiations between one or more trade unions and one or more employers on pay and conditions of employment.

  Productivity agreement

  
  
  It is an agreement between the management and workers whereby the management agrees to increase the benefits for workers in return for an increase in productivity.