Professional Documents
Culture Documents
unions
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ENRICHMENTS
Trade union:
Industrial action:
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The majority of worker-to-manager and therefore
union-to-employer problems are worked out
peacefully through negotiation. However occasionally
an issues arises where no agreement or solution can
be reached. This is when a trade union may conduct
some form of industrial action in order to force the
employer to back down.
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LABOUR LAWS:
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ADVANTAGES AND DISADVANTAGES OF TRADE
UNIONS:
2. Counterbalance Monopsonies.
3. Represent Workers
Trades Unions can also protect workers
from exploitation, and help to uphold health and
safety legislation. Trades unions can give
representation to workers facing legal action
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4. Productivity deals.
Trades Unions can help to negotiate
productivity deals. This means they help the firm
to increase output; this enables the firm to be
able to afford higher wages. Trades unions can be
important for implementing new working practices
which improve productivity.
1. Create Unemployment.
If labour markets are competitive, higher
wages will cause unemployment. Trades unions
can cause wages to go above equilibrium through
the threat of strikes etc. However when the wage
is above the equilibrium it will cause a fall in
employment.
3. Lost Productivity.
If unions go on strike and work
unproductively (work to rule) it can lead to lost
sales and output. Therefore their company may
go out of business and be unable to employ
workers at all.
4. Wage Inflation.
If unions become too powerful they can
bargain for higher wages, above the rate of
inflation. If this occurs it may contribute to
general inflation. Powerful trades unions were a
significant cause of the UK's inflation rate of 27%
in 1979.
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