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9.1 The role of trade unions

S7
Lesson 9
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What is a trade union or labour union?
Trade unions are organizations that promote and protect the
interests of their members (employees) to improve their wages
and working conditions
The trade union movement worldwide has helped to
fight and bring to an end child labour in many countries
improve workers safety
increase wages for both union and non-unionized workers
improve education and other benefits for many poor and working
class families





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Types of trade union
Trade unions may represent:

employees with the same
skills or in the same occupation

employees in the same
industry

employees with different skills in different
occupations and industries


Industrial unions
e.g. National Union of
Mineworkers in South Africa
(NUM)
Craft unions
e.g. Union of Operators
and Technicians in Cinema
and Video Projection
(Spain)
Non-manual unions
e.g. German Police
Union
General unions
e.g. Australian Workers
Union
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The aims of unions
Unions aims are:
negotiating improvements in wages and other non-wage benefits
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 workers 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 for their members
improving employment legislation
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5
Lesson 10
9.1 The role of trade unions
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Collective bargaining
Trade unions may seek to improve the wages
and other working conditions of their members if:
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 productivity of their members has increased
the profits of the employing organization have
increased

Negotiations take place between trade unions and employers over
improvements in wages and other non-wage benefits for employees

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Union bargaining strength
Strong bargaining position if:
the union represents most or all of
the workers in the firm or industry
union members provide essential
services such as health care and
electricity
the union is able to support its
members financially during strike
action
Weak bargaining position if:
many workers in the firm or industry
do not belong to a union
union members provide non-essential
goods or services for which there are
many close substitutes
the union lacks financial resources
laws outlaw or severely
restrict union activity
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What if negotiations fail?
Trade union members make take industrial action in an attempt to increase
their bargaining strength. Industrial action disrupts production, increases
costs and reduces revenues for employers.
Arbitration may be necessary to settle industrial disputes. This involves
employers and unions agreeing to let an independent referee, often a senior
government official or lawyer, help them to settle their industrial dispute.
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Forms of industrial action