A trade union is an organisation of workers that acts together to protect and improve its members' pay and working conditions. Alone, one worker has little bargaining power; united, workers have much more.
Why this matters Millions of workers belong to unions, and their actions affect wages, prices and even whether trains run. Understanding both sides of the argument helps you judge news stories about pay disputes fairly.
What trade unions do
Unions carry out several roles:
- negotiate pay and conditions with employers on members' behalf;
- defend members treated unfairly, for example over dismissal or safety;
- improve working conditions such as hours, breaks and safety;
- provide advice and sometimes training.
How unions try to raise pay and conditions
The main method is collective bargaining: negotiating as a group rather than one by one, which is far stronger. If talks fail, unions may take industrial action such as a strike (stopping work), a work-to-rule (doing only the exact contract), or an overtime ban. The threat of losing output pushes employers to improve their offer.
Advantages of trade unions
- Workers gain a stronger, united voice.
- Safer, fairer workplaces can result.
- Negotiating with one union can save an employer time versus talking to each worker.
Common exam mistake: describing every union dispute as ending in a strike. Strikes are a last resort after collective bargaining fails; unions have graduated options (negotiation, work-to-rule, overtime ban) before industrial action, and most disputes are settled by bargaining alone.
Disadvantages of trade unions
- Strikes can lose output and harm the firm and the public.
- Higher wages may raise a firm's costs and prices.
- If pay rises above what the firm can afford, some jobs may be cut.
Exam technique: when evaluating trade unions, weigh the effect from three viewpoints - the worker, the firm, and the wider economy or consumer - a fully balanced answer covering all three tends to score in the top mark band.
Put these steps in order to show how a pay dispute typically escalates:
- Union and employer hold pay negotiations (collective bargaining)
- If talks fail, the union ballots members on action
- Members may begin a work-to-rule or overtime ban
- If the dispute remains unresolved, the union may call a strike
- Lost output pressures the employer back to the negotiating table