Trade Unions

Topics: Employment, Collective bargaining, Trade union Pages: 2 (323 words) Published: June 8, 2014
Week 6 - Trade unions
Trade unions can be defined as an organisation set up by employees to assist them in the workplace.

 They have a significant influence on the wages and working conditions of employees. The main objectives of trade unions focuses on:
employment relationships;
negotiation of pay and employment conditions;
training and education among employees and
settlement of disagreement between the employer

Unions negotiate with employers on the behalf of union member, until a collective bargaining agreement (CBA) is achieved. CBA is a written contract of terms and agreements between the two parties.

The advantages of trade unions are:
Economic benefits
Trade unions seek to increase the wage rates of employees and maintain an effective working environment (condition) though negotiating agreements.

Increased efficiency
Unions are seen to influence the productivity in the workplace.

Reduction in management prerogative which therefore;
Increases employee control and decision–making ability.

Collective voice
Unions equalise the employer & employee relationship by allowing the employees to voice their own opinion and concerns in certain issue within their workplace.

Examples of Trade Unions: Australia Council of Trade Union (ACTU) as they provide better employment conditions for instance, wage increases through the award system.

The disadvantages of trade unions are:
Trade unions may be seen as unwanted presence in the workplace due to their compelling views towards employment conditions. There’s also a chance that trade unions may support a wrong doing member. Management may feel intimidated towards the trade unions views and opinion which therefore affects their management decision making.

Decline in Trade unions
Economic and labour market changes - such as the fall in full time employment and increases in more casual and part-time jobs because of the cost-efficiency. Modern industries were...
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