Question

1.a) What is a Trade Union? Provide an example of trade union in the workplace.

1. b) Briefly explain three benefits to be gained from joining a Trade Union. Provide examples.

1. c) Discuss the reasons that are likely to influence an individual’s decision to join or avoid a Trade Union. Provide examples.

Answer 1

1. (a)

A trade union is a membership based organization and its membership must be mainly made up of its workers. One of the primary objectives of trade unions is to protect and advance the interests of the members in the workplace. Most of the trade unions are independent of an employer. However, trade unions try to create close working relationships with the employers to gain advantages. This can take the form of a partnership agreement between the the trade union and employer which identifies their common objectives and interests. One of example of trade unions is Service Employees International Union which is based in U.S. and works to improve life of workers.

1. (b)

Advantages of trade unions:

(i) Increase wages for its members

Industries with trade unions tend to have higher pay rates than the industries with no union. Trade unions participate in collective bargaining giving employees a greater influence in negotiating a fairer pay settlement. The efficiency wage theory states that higher wages eventually results in increased productivity. If an employee feels that he is getting a higher wage, he can feel more loyalty towards the organization and seek to work for its success.

(ii) Represent workers

Trades Unions can also protect employees from exploitation, and help to uphold safety and health and legislation. Trades unions can give representation to employees facing unfair dismissal or legal action.

(iii) Productivity deals

Trades unions can help in negotiating and implementing new working practices which eventually help in increasing productivity. For example, in wage negotiations, organizations may agree to increase the wages, on the condition of implementing new practices, which results in higher productivity. Trade unions can help in creating good working relationships between the employees and owners.

1. (c) Advantages like higher wage, health and safety protection, higher productivity, protection rights and other benefits motivate employees to join trade unions. There are certain disadvantages of joining a trade union owing to which Individuals avoid joining trade unions. These disadvantages include time and productivity lost to strikes, it can create unemployment if labor marker becomes competitve etc.