Question

4. How do unions raise wages by increasing demand for labor? B) And which type of union in particular uses this strategy? Answer:

Answer 1

The union raise wages by increasing demand for labour in such a manner when they know the productivity, effectiveness and efficiency of the labour in the organisation and the union take the step to raise the pages of the per day, because the rising page is not a big issue when the people are working according to the productivity of the organisation. Therefore it is also beneficial for both the organisation and for the employees. When the productivity increases then return of the wages also increases, it will also build a good relation between employer and employee.

This type of unions are called as trade unions because only the trade unions are in the favor of employees and they always try to raise the wages in the organisation or in the overall economy because, every trade union are democratic and efficiently fight for the rights of the employees.