Page 105 - Cambridge IGCSE Business Studies

7: Organisation and management

Trade unions
KEY TERM
What is a trade union?
Trade union: an organisation
of workers aimed at improving A trade union is an organisation formed and financed by workers for the purpose

pay and working conditions and of protecting the interests of its members and improving their pay and working
providing other services, such as conditions.
legal advice, for members.

There are many different types of trade unions. Some of these represent specifi c

types of workers, for example the South African Democratic Teachers Union,

whereas others have members from different industries, such as the General
EXPLORE! Workers Federation in Mauritius.
Trade unions help their members by carrying out the following roles:
Work in small groups to research
a trade union in your country. Use
■ Negotiating with employers to improve pay and working conditions – this is
local newspapers, magazines,
the main role of trade unions. They will represent their members in talks with
library resources, the internet,
employers at national or local level on issues such as pay, hours of work, holidays,
or write to the head off ice for
information. health and safety in the workplace. Negotiations between trade unions and
What type of workers are employers are known as ‘collective bargaining’.
their members? What services
■ Resolving conflict – when there is disagreement between an employer and its
and benefits do they provide to workers which the workers themselves have been unable to resolve then the trade
members?
union will try to negotiate a solution on behalf of its members.
Make a short presentation
to your class about your chosen ■ Providing legal support and advice – a trade union will provide its members with
trade union. advice about their legal rights as an employee. If a worker is treated unfairly by
an employer, for example dismissed without good reason, then their trade union
will offer the services of legal specialists so that they are able to take legal action

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against the employer.
■ Providing services for members – many trade unions provide a range of benefits for
members including pension schemes, insurance schemes, holiday schemes and
many other benefits.

Benefits of being a trade union member

The main benefits of trade union membership for workers are:
■ Workers who join together in a trade union have greater power when dealing
with employers than if they were to do so as individuals. Collective bargaining is
the best example of this ‘strength in numbers’. The trade union negotiates with
employers on behalf of all its members in a business or industry. The collective
power of all the members of the trade union, acting as one, achieves much
better improvements in pay and conditions than if they were to negotiate with
their employers on an individual basis.
■ Trade unions provide support and legal advice to members who are being unfairly
treated by employers, or who have been injured at work. This legal advice would
often be too expensive for individual workers to aff ord themselves.

Trade unions will try to protect workers’ job security by discussing with employers
any major changes to the workplace that might involve job losses and redundancy.
The trade union will encourage employers to look at other options which might

reduce the number of job losses.