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Trade unions

A trade union lets workers negotiate as a group instead of one at a time. That usually wins better pay and conditions, but a wage pushed above what the market would pay can mean fewer jobs.

Need to know

What you need to know

  • A trade union is an organisation of workers formed to protect and improve pay and conditions.
  • Collective bargaining: negotiating as a group with the employer.
  • Other functions: representing members in disputes, safety, training, legal advice, lobbying government.
  • Types: craft, industrial, general and white-collar (professional) unions.

Explanation

Trade unions

  1. Workers join together to bargain collectively with the employer.
  2. Unions negotiate pay and conditions, represent members and can call industrial action.
  3. They are strong when members are many, skilled and hard to replace, and the economy is booming.
  4. A wage above the market level raises pay for members but can reduce the number employed.