Describe trade union, its impact on the economy, collective bargaining and the activities of trade unions

1. MACROECONOIC
DECISION MAKERS
TradeUnion

2. What is a trade union?
A trade union (labour union) is an organization which aims to
protect the interests of its worker members

3. Types of Trade Union
• Craft union
• Industrial union
• White collar union
• General union

4. Student Activity
Identify three possible aims and objectives of
1. Employers
2. Employees

5. The Role of Trade Union in the Economy
• They bargain with employers for better terms and conditions of service
• They ensure a safe and healthy work environment for workers is maintained
• They persuade the government to pass legislation in favour of workers
• They support redundant workers

6. COLLECTIVE BARGAINING
Collective bargaining is the process of trade union representatives negotiating on behalf of
their worker members with employers’ representative for a better pay and working condition

7. BASIS FOR A COLLECTIVE
BARGAINING
• Rise in cost of living
• Increase in the productivity of labour
• Workers in comparable conditions with a wage increase

8. Student Activity
Learners attempt Exam-style questions a (
Cambridge IGCSE and O level Economics Second
Edition, Page 126)

9. INDUSTRIAL ACTION
These are measures taken by trade union members as a
result of major disagreements with employers

10. TYPES OF INDUSTRIAL ACTION
1. strike
2. work-to-rule
3. Go-slow
3. sit-in

11. Factors influencing the strength of Trade
Union
• Number of members
• Government action

12. Advantages of Trade Union Membership
1. they act as a channel of communication between employers
and employees
2. they negotiate with employers on behalf of employees
3. they negotiate with government for the introduction or
review of minimum wage
4. they help to reduce industrial conflict and improve industrial
relations

13. Disadvantages of Trade Union Membership
1. their industrial action results in economic losses
2. their industrial action also disrupts firms and
economic activities
3. demand for higher pay increases the cost of
production

14. Student Activity
Learners attempt Exam-style questions a (
Cambridge IGCSE and O level Economics Second
Edition, Page 127)