Economics-Unit 3.3: The role of trade unions

What are the negative impacts of union action on consumers?

May be unable to obtain goods and services they need and may also have to pay higher prices if firms pass on their increased costs.

Who holds the second position in a union, what is their job?

National Executive. This is the management tier of the union with executive members elected by union members to the union nationally. It decides union policy, strategy, considers and responds to government legislation that may affect members interests, and be responsible for finances.

What is a global union federation?

National and regional trade unions representing workers in specific industries or occupations can also join global union federations.

What is a trade or labor union?

Organisations which protect the interests of their members (workers and employees), with the purpose of improving their wages and working conditions.

What is collective bargaining?

Process of negotiating pay and working conditions between trade unions and employers is known as collective bargaining. (1 or 2 union reps. speak on behalf of a larrge union).

What is a Industrial Union?

Represent workers in the same industry, for example, the Turkish Union of Defense Workers, or the National Union of Mineworkers

What is a possible reason behind decreasing union membership in developed countries? Which sector are unions stronger in?

Shift from manufacturing industries to service industries. The public sector

What is a non-manual union or a professional association?

Sometimes called white collar unions, represent workers in non-industrial and professional occupations, such as a union of doctors, or journalists.

Who holds the top position at the union, describe their job?

The General Secretary. They are the head of a union, they are normally elected by members

Who are the members of a union?

The employees who belong to the union

What is a Branch in a Union?

The fourth position. All members in local areas will be part of a local branch and can attend branch meetings to discuss union issues/business that affect workers in different workplaces

What are the negative impacts of union action on an economy?

The reputation for that economy as a good place for business might be damaged by frequent and widespread industrial action. Firms may decide to invest and set up businesses elsewhere. This will increase unemployment and lower incomes.

What are the negative impacts of union action on businesses?

They suffer higher costs, and lose output, revenues and profits during industrial action. If action goes on for a long time, a business may also lose important customers to rival firms. (becomes noncompetitive)

What is closed shop?

Trade union membership is made a compulsory condition of a taking a job in a organisation. The closed shop is outlawed in many countries because it gives a union to much power to dictate who a firm should employ and to call all the workers in that firm out on strike.

What is a General Union?

Union representing workers from many different occupations/industries. For e.g unite in the UK represents commercial, transport, manufacturing workers in both the public and private sector.

What is arbitration?

When a third party is involved to settle industrial disputes. The employer and union agree on an independent referee, such as a senior government official or lawyer. Both sides therefore accept a fair compromise, something that is satisfactory to both parties but rather less than they had initially wanted.

What is demarcation?

When a union insists that its members can only carry out certain jobs and will not take on new tasks, or when a firm employs non union members to carry out the same or similar tasks instead.

What is Industrial action?

When negotiations between the employer and unions fail to come to an agreement, workers will take disruptive courses of actin to put pressure on employers to meet their demands

What are the negative impacts of union action on union members?

Will not be paid their wages or salaries during a strike though some may receive income support from their unions stike fund. Some workers may also lose their jobs, if employers cutback their demand for labor due to higher production costs (lost customers and profits)

What is a official/unofficial action?

Workers are given backing by their trade unions to act + other unions might take support. Or, workers taking action don't have the support of their union.

Forms of industrial action: What is a 'go-slow?'

Workers carry out tasks deliberately slowly to reduce production

Forms of industrial action: What is a 'work to rule'?

Workers deliberately slow down production/productivity by complying rigidly with every rule and regulation

Forms of industrial action: What is an overtime ban?

Workers refuse to work more than their normal hours

Forms of industrial action: What is a strike?

Workers refuse to work, and may also protest/picket, outside their workplace to stop deliveries and prevent non-unionized workers from entering.

What are a trade union's aims?

-Negotiating improvements in and other non wage benefits with employers -Defending employees rights and jobs -Improving working conditions, such as securing better hours of work and better health and safety policies -Improving pay and other benefits, including holiday entitlement, sick pay and pensions -Encouraging firms to increase worker's participation in business decision making -Supporting members who have been dismissed or who are taking industrial action -Developing the skills of union members, by providing training and education courses -Providing Social and recreational amenities/facilities for their members -Influencing government policy and employment legislation

What are a few reasons why trade unions will argue for improved wages and other working conditions?

-Price inflation is high and rising -Other groups of workers have received pay rises -New machinery or working practices have been introduced in the workplace -The labor productivity of their members has increased -The profits of the employing organisation have increased

What are the negative consequences of a wage increase demand by unions, not matched by higher productivity?

-Production costs will rise, firms will pass on higher wage costs to the price of their product-affecting consumers -Profit of the owners of the firm, will be reduced -Pension pay ,sick pay, all these things can contribute to higher prices so a firm becomes less competitive, decreasing its demand for labor, resulting in unemployment

Give three factors that make the bargaining power of a union stronger

-The union represents most or all of the workers in that firm or industry -Union members provide products and public services consumers need and for which there are few close substitutes, such as electricity, public transport, health care and education -Union is able to support its members financially during strike action to compensate them for their loss of earnings

What are the advantages of a single union agreement?

-Time is saved by negotiating with only one union -It avoids disagreements arising between different unions -Easier to implement changes in working practices through one union -A closer working relationship with the union should develop and help to reduce industrial disputes.

How many sub sections is a union organised into?

6

What is a craft union?

A craft union is often small and relatively few in number. They represent workers with the same skills across several industries, such as the Union of operators, or United Brotherhood of Carpenters.

What is a open shop?

A firm can employ both unionized and non-unionized labor.

What is a single union agreement?

An employer agrees to a single union representing all it's employees.

What is a union AGM?

Annual General Meeting. This is where all the delegated members and shop stewards from different work places can attend to discuss common issues with the union's national executive, and work on policies.

Why do firms and unions agree to a non strike agreement?

Because industrial action can be extremely damaging (relating to reasons for negative impacts on consumer, economy, workers, and employer)

Name some causes that trade unions have for

Bringing an end to child labor, improve worker's safety, increased wages for both union and non-unionized workers, improved education and other benefits for poor and working class families

How are trade unions funded?

By the membership fee, paid by members.

Who holds the third position in a union, what is their job?

District Committee. Branches of these can belong to a district or a regional committee of elected union officials to run/look after union affairs in a region

What is a shop steward in a union?

In addition to their normal job, they represent union members in their workplace, help with any issues they have and carry out day-to-day tasks on behalf of the union

What is the main disadvantage of a single union agreement?

It gives the trade union significant bargaining power. Therefore, firms only agree to single union representation if the trade union agrees to commitments on improved levels of productivity, maintaining skill levels in the workforce, and not to take strike action.