Exam tip 1
If asked about the effects of a strike, give effects on three groups — workers, the firm and consumers — and note that the short-run cost to workers may be worth it if the long-run pay rise is large.
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Trade unions — common mistakes
Common exam mistakes on 2281 Trade unions. Learn what loses marks, then practise the topic with Examiner’s Ink.
Exam tip 2
The highest-scoring evaluation: 'Whether union wage rises cost jobs depends on the elasticity of demand for labour and on whether productivity rises with pay.' Then give one case where it does and one where it does not.
Is a trade union the same as a professional body?
Not quite. A professional body such as a medical council sets standards and licenses members; a trade union bargains over pay and conditions. Some organisations, such as teachers' unions, do both.
Do unions always cause unemployment?
No. If a union raises productivity, if demand for labour is inelastic, or if the employer is a monopsony paying below the competitive wage, a higher wage need not reduce employment — and may raise it.
Why has union membership fallen in many countries?
Manufacturing jobs, where unions were strongest, have declined; more people work part-time, in small firms or for themselves; and laws in many countries have restricted strikes and closed shops.