TRADE UNIONS

 DEFINITION
 ROLE OR OBJECTIVES OF TRADE UNIONS
 APPROACHES USED
 DETERMINANTS OF TRADE UNION
TRADE UNION
• A trade union is an association of workers formed with the
object of improving the conditions of workers.
• Labour unions or trade unions are organizations formed by
workers from related fields that work for the common interest of
its members.
EXAMPLES OF TRADE UNIONS

This Photo by Unknown Author is licensed under CC BY-NC-ND

ROLES OR OBJECTIVES OF TRADE UNIONS

• To improve the working conditions and wages of its

members.
• To protect members against unfair treatment.
• To ensure constant supply of labour force.
• To develop cooperation with employers.
• To improve labours skills.
APPROACHES USED BY A TRADE UNION
TO ACHIEVE ITS OBJECTIVE
• A trade union achieves its objective through threatening to strike if their
demands are ignored.
• Through collective bargaining that involves peaceful negotiations between
representatives of a trade union and employer.
• Through sabotage that occurs when workers convince consumers not to buy
the products produced by a certain firm.
• Through compulsory arbitration, when the government gives out directions
to both employer and employees on what should be done without taking
sides.
DETERMINANTS OR STRENTH OF
TRADE UNIONS
Productivity of labour
If the productivity of labour is high the willingness of an employer to raise
wages and improve working conditions will be high.
The size of membership
When a trade union has a large number of members spread all over the
country it will have strong bargaining power so that its strength will be high.
DETERMINANTS OR STRENTH OF TRADE
UNIONS

Government policy
Government policy supports labourers the strength of trade union will
be high and vice versa.
Elasticity of demand for the final products
When the final product produced has inelastic demand, a trade union
tends to become more powerful in defending the interest of its members.
DETERMINANTS OR STRENTH OF TRADE
UNIONS

Economic or financial power

A strong trade union that is capable of hiring a lawyer and financing
advertisement in various media will be able to increase its power.
Scale of production
If the scale of production is large, the strength of the trade union
will tend to increase and viceversa.
PREPARED BY:
ALVIN MUNIS