8

Trade unions

Exam practice (p. 91)

1 Factors which may have caused the trade union members in Kerala to strike
include:
l pay increases not keeping up with the increasing cost of necessities in Kerala,
e.g. fuel and food
l lack of consistency in terms and conditions of employment in places of work
l demands for an increase in the minimum wage to keep up with increasing
costs of living (inflation).
Award 1 mark for each clearly identified factor that may have caused workers to
strike to a maximum of 3.
2 Factors which suggest the strike may be successful in getting the demands of the
workers met may include:
l The strike will cause disruption to other businesses and the economy of Kerala
and draw attention to the demands of the workers.
l The government and employers may have to consider the demands of the
workers if they wish for productivity of labour to return to normal.
l The government and employers may choose to negotiate with the trade union
on behalf of the striking workers because of the widespread nature of the
strike.
l The strike involves workers from many sectors of industry and therefore there
is possibly power in the number of workers on strike.
Factors which suggest the strike may not be successful in getting the demands of
the workers met may include:
l There may be negative repercussions for businesses because of the widespread
nature of the strike.
l The government and employers may choose to ignore the strike action.
l The government and employers may think that the demands of the strikers are
too high and cannot be met.
l Changes to terms and conditions of work may take a long time to resolve.

Award 12 marks for a brief answer that shows limited understanding.

Award 34 marks for a good discussion of the potential success of the strike.
There may be a lack of detail and/or use of relevant examples.
Award 56 marks for a detailed discussion of the potential success of the strike.
There is appropriate use of terminology and use of examples. There must be a
reasoned judgement made for full marks.

Activity (p. 93)

Students own answers.
The aim of the activity is for students to investigate and find out about the number
of trade unions in their country (or a country of their choice) and the extent of any
trade union action. It should encourage them to form an opinion about the power of
trade unions and their role in the economy.

Cambridge IGCSE and O Level Economics Hodder & Stoughton 2013 1

 8 Trade unions

Exam practice (p. 93)

1 Possible reasons why the trade union decreased the demands for a pay increase
without consulting with its members include:
l Negotiations with the government were speeded up because consulting with
teacher members would have taken a long time to reach an agreement.
l The demands of the teachers were high and the trade union considered them
to be unrealistic.
l The trade union negotiated for a more realistic (in its opinion) wage increase.
l There was disagreement between the trade union and the teachers.

Award 1 mark for each clearly identified reason to a maximum of 4.

2 Possible impact of the strike on teachers includes:
l loss of pay
l increased sense of solidarity with fellow striking teachers
l sense of purpose as the strike was covered in national and international
newspapers.
Possible impact of the strike on school children includes:
l loss of education and lessons for two days
l teachers working hard to compensate for missing two days of teaching and
wishing to minimise impact on children
l teachers feeling less motivated because of need to take industrial action, which
may impact on teaching and commitment to extra-curricular activities.
Possible impact of the strike on the wider economy includes:
l loss of productivity in the economy due to parents having to take two days off
to look after their children because of the strikes
l disruption to transport caused by striking teachers marching through the cities
in Victoria.
Award 12 marks for a brief answer that shows limited understanding of the
impact of the strike on teachers, children and the wider economy (stakeholders).
Award 34 marks for an explanation of two of the three stakeholders.
Award 56 marks for an explanation of the impact of the strike on each of the
three stakeholders.
3 Possible reasons why the government did not agree to the 30% pay increase
might include:
l There are potentially huge detrimental effects on employers and the economy
if firms are forced to raise teachers wages by 30%. These include:
other public sector workers demanding a higher wage
an opportunity cost of the money spent on paying teachers more money
the added burden on tax payers to support the higher pay for teachers
potentially worsening the governments budget deficit.
l A wage ceiling (maximum pay increase) of a 2.5% increase per year for public
sector workers was part of the governments strategy to decrease public sector
spending in the Victoria region.
l Teachers need to be paid in accordance with the introduction of performance-
related pay and further increases in their productivity.
Accept any other valid and well-discussed argument as to why the government
did not agree to the 30% pay rise.

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 8 Trade unions

Award 13 marks for a brief answer that shows limited understanding of reasons
why the government did not agree to the pay increase.
Award 45 marks for a sufficiently detailed discussion, with application of the
stimulus material.
Award 67 marks for a thorough discussion showing a good level of
understanding of the reasons why the government did not agree to the 30% pay
increase for teachers.

Exam practice (p. 94)

1 Female membership of trade unions in China has increased by 126% in the ten
years from 2000 to 2010. Possible reasons for this include:
l Growth in the manufacturing industry has led to more women working for
low pay and in poor working conditions.
l An increasing wealth gap and higher costs of living have caused women to
petition for higher wages and better working conditions.
In the UK female membership of trade unions has increased by only 5.7%.
Possible reasons for this include:
l There are fewer jobs in the manufacturing sector which is traditionally a
unionised sector of the economy.
l Changing government legislation seeks to reduce union influence.
l Growth in part-time employment part-time workers are less likely to join a
trade union and many women work part time.
l Firms are independently agreeing fair terms and conditions with their
employees without negotiating with trade unions.
Award 12 marks for a brief explanation that shows some understanding of the
reasons for the changes in female trade union membership in China and the UK.
Award 34 marks for a detailed explanation that uses the data to demonstrate an
understanding of the reasons for the changes in female trade union membership
in China and the UK.
2 Trade union membership has increased in China from 2000 to 2010 by 104%.
Possible reasons include:
l Growth in the manufacturing industry has led to more workers working for
low pay and in poor working conditions.
l An increasing wealth gap and higher costs of living have caused workers to
petition for higher wages and better working conditions.
l An increase in the workforce has led to more workers working for low pay and
in poor working conditions.
l Workers have joined a trade union to take advantage of collective bargaining
and negotiating power.
Trade union membership has decreased in the UK from 2000 to 2010 by 8%.
Possible reasons include:
l changing government legislation which seeks to reduce union influence
l a decline in manufacturing, which is traditionally a unionised industry
l growth in part-time employment, as part-time workers are less likely to join a
trade union
l firms independently agreeing fair terms and conditions with their employees
without negotiating with trade unions
l an increase in unemployment

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 8 Trade unions

l an increase in employment in small firms, as it is more difficult to organise

unions within such firms
l an increase in the number of self-employed people (people who work for
themselves and not for a firm) and are therefore not trade union members.
Award 12 marks for a brief explanation of the trends in trade union membership
in the UK and China.
Award 34 marks for a description and account of trends in trade union
membership in the UK and China.
Award 56 marks for a detailed description and account of trends in trade union
membership in the UK and China making reference to the data.

Cambridge IGCSE and O Level Economics Hodder & Stoughton 2013 4