Factors affecting the strength of a trade union

 A high level of economic activity.

 A high number of members
 A high level of skill
 A consistent demand for the product produced by the workers.
 Favourable government legislation

Industrial action
an overtime ban-only working for working hours.
‘work to rule’ –only working for which they are contracted.
Strike- workers stop working for making employer agree to their demands.
Strike action can be measured in three main ways

• the number of strikes

• the number of workers involved
• the number of working days lost

Influence on the supply of labour

Besides negotiating and taking industrial action, trade unions can seek to raise the wages
of its members by restricting the entry of new workers into the industry, occupation or craft .

Advantages and disadvantages of trade

union membership

A firm’s costs and flexibility

will also be adversely aff ected by overtime bans and ‘work to rule’ action.

Trade unions, however, can provide benefits to the firms. It is less time consuming, less
stressful and hence cheaper to negotiate with workers as a group, than to negotiate with
each worker individually

Unions also provide a useful channel of communication between

employers and workers.

They oft en encourage workers to engage in education and training

which raises productivity and promotes improved health and safety

Trade unions and the government

The role and importance of trade unions vary in different countries. Some countries do not allow trade
unions to operate whereas in other countries trade unions are relatively powerful.

In Saudi Arabia, trade unions are illegal.

Pakistan have the right to

form trade unions, but a number of laws restrict their actions and hence their effectiveness.