| What is a Trade Union? | -Refers to an Organisation being set up to Represent the Interests of a Group of Workers
-Examples: The National Education Union (NEU) and the Royal College of Nursing (RCN) |
| What are the Aims of a Trade Union? | -Aims to Bargain with Employers and get the Best Situation for its Members. They can Negotiate for Better Pay, Working Conditions, and Job Security
-Collective Bargaining: Negotiating on a Local District to a Firm right up to Public Sector Trade Unions coordinating Strikes across the UK
-Productivity Bargains where Unions agree to Specific Changes that lead to Increased Productivity in exchange for Higher Wages and other Benefits. Workers' Pay gets Increased which links to the Quality of their Work
-Making sure their Members are Safe at Work. Break times, Health and Safety and Discrimination |
| How did the Trade Unions of Britain lose Influence during and after Thatcher? | -In 1979, when Thatcher came to Britain, Trade Unions had 13 Million Members. Thatcher tried to Reduce the Power of Trade Unions and argued it was a Supply Side Policy to make British Industry more Flexible and Competitive
-The Decline of the Large Manufacturing Industries (Shipbuilding, Mining) also contributed to the fall in Membership. The Service Sector had been Growing Rapidly, which hardly had any Service Attention
-Workers who are on Flexible and Part-Time Contracts will also be less Likely to Join a Union.
-Today, the number of Union Members remains at 6.4 Million People (23%) |
| What happens when a Trade Union is Implemented in a Perfectly Competitive Labour Market? | -The Wage Rate and Supply is Set by where MRP = MC
-When a Trade Union joins, the Workers can Negotiate for a Higher Wage - one that is more Expensive for the Firm-
-The Higher Wage Rate can lead to Cutbacks in the Employment Force, and so Unemployment occurs
-The Amount of Unemployment caused depends on the Elasticity of the Labour Demand Curve. |
| Why may a Pay Rise which is Negotiated by a Trade Union not lead to Unemployment? | -Trade Unions can exchange the Higher Wages and Benefits in return for its Member to be more Productive and having their MRP Higher.
-A More Efficient Working Practice can be Established which can Increase Worker Productivity, which can Boost the Firms Profits |
| What happens when a Trade Union is Established in a Monopsonistic Labour Market? | -A Trade Union can Boost Wages and Employment
-Because Workers are paid Less than their MRP - Underpaid - they can use the Union to Negotiate a Higher Wage.
-This would Change the Profit Maxing Spot, which would be more Further to the Right. This means more Workers are Required so Employment is Boosted |
| Why are Trade Unions today less likely to cause Market Failures? | -Government Legislation has Reduced the Power of Trade Unions making their Influence less Powerful
-Trade Unions have demonstrated they can change the Workplace in a more Positive Field. For Higher Wages and Conditions, they have delivered on a more Productive and Flexible Workforce |
