3.4 - Trade unions
3.4.1-3.4.2 - The role of trade unions in the economy
Trade unions are associations that represent the interests of the members,
aiming to improve their pay and working conditions. Trade unions have to be
recognised by the government.
Things to note
● Some countries do not allow trade unions to operate
Main types of trade unions (not in syllabus, just know)
1) Craft unions
● Represent workers with particular skills
● Some of them could be employed a number of industries
● E.g plumbers, weavers
2) General unions
● Represent workers with a range of skills and from a range of
industries
3) Industrial unions
● Seek to represent all workers in a particular industry
● E.g rail industry, banking
4) White collar unions
● Represent particular professions
● E.g pilots, teachers
Roles/functions of trade unions
1) To negotiate on behalf of their members on jobs, job security, working hours,
and working conditions
2) To try and protect or improve workers’ rights
3) Provide information on a range of issues for their members
● E.g pension, training, legal advice, etc
4) Collective bargaining
● Trade unions enable workers press their claims through collective
bargaining
● This process involves negotiations between trade union officials and
employer representatives
● Trade unions will often argue for improved working conditions, etc if:
○ Price inflation is high and rising
○ Other groups of workers have received pay rises
○ New machinery or working practises have been introduced in
the workplace
○ The labour productivity of their members has increased
3.4.1-3.4.2 - The role of trade unions in the economy
Trade unions are associations that represent the interests of the members,
aiming to improve their pay and working conditions. Trade unions have to be
recognised by the government.
Things to note
● Some countries do not allow trade unions to operate
Main types of trade unions (not in syllabus, just know)
1) Craft unions
● Represent workers with particular skills
● Some of them could be employed a number of industries
● E.g plumbers, weavers
2) General unions
● Represent workers with a range of skills and from a range of
industries
3) Industrial unions
● Seek to represent all workers in a particular industry
● E.g rail industry, banking
4) White collar unions
● Represent particular professions
● E.g pilots, teachers
Roles/functions of trade unions
1) To negotiate on behalf of their members on jobs, job security, working hours,
and working conditions
2) To try and protect or improve workers’ rights
3) Provide information on a range of issues for their members
● E.g pension, training, legal advice, etc
4) Collective bargaining
● Trade unions enable workers press their claims through collective
bargaining
● This process involves negotiations between trade union officials and
employer representatives
● Trade unions will often argue for improved working conditions, etc if:
○ Price inflation is high and rising
○ Other groups of workers have received pay rises
○ New machinery or working practises have been introduced in
the workplace
○ The labour productivity of their members has increased
