The Role of Trade Unions (Cambridge International IGCSE Business)
What trade unions do
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A trade union is an organisation that represents the interests of its workers in negotiations with a firm’s management or owners
- A trade union's main aim is to **protect and advance the interests of its members **in the workplace
- Most trade unions are** independent of any employer** but try to develop close working relationships with employers
The functions of trade unions
| Function | Description |
|---|---|
| Protect employee rights | - Trade unions make sure workers are treated fairly and that employers follow the law |
| Negotiate pay and conditions | - They talk to employers on behalf of workers to agree on wages, working hours and holidays |
| Support during disputes | - If there is a disagreement (e.g. over pay cuts, discrimination or unfair treatment), the union represents and supports the employees |
| Give legal advice | - Trade unions help members understand their rights and may offer legal help in case of problems at work |
| Provide training and education | - Some unions offer training courses or workshops to help workers improve their skills or learn about their rights |
| Improve health and safety | - Unions push for safe working conditions and may work with employers to reduce risks in the workplace |
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Trade unions are usually formed by the members of specific industries
- Airline pilots have a pilots' union
- Rail and sea workers have a rail and maritime union
- E.g. The NEA is the USA's largest professional employee organisation, representing public school teachers and other support personnel at colleges and universities
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Workers pay a monthly fee to join a trade union
- The fee is called a subscription
- Membership ends when the member stops paying this fee
Benefits to employees of being a trade union member
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Almost 23% of UK employees in permanent positions belonged to a trade union in 2022
- Poland has the lowest level of trade union membership in the EU
- Around 70% of workers in Scandinavian countries are trade union members
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Public sector industries tend to have the highest membership density
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Women are more likely than men to belong to a trade union
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Trade union members generally receive higher pay than non-union members
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Large trade unions are able to influence government decisions in favour of workers
Evaluation of trade union membership
| Advantages for employees | Disadvantages for employees |
|---|---|
| - Workers benefit from collective bargaining, meaning they do not have to negotiate alone - Union members often receive higher pay, better working conditions and non-wage benefits such as breaks and holiday rights - Trade unions offer free legal advice, support during disputes and job training to help workers | - Union decisions may not reflect everyone’s views, but members are still expected to support them - Union fees must be paid, reducing discretionary income - Should a strike be called, employees are not paid, creating stress and tension between workers and management - Workers who choose not to take industrial action may face pressure or intimidation from others. |
Exam Hint Avoid one-sided answers – in exams, show how trade unions can benefit employees (e.g. protection, better pay) but may also create challenges for employers (e.g. strikes, higher costs)
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