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