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:
Trade unions seek to increase the wage rates of employees and maintain an effective working environment (condition) though negotiating agreements.
Unions are seen to influence the productivity in the workplace.
Reduction in management prerogative which therefore;
Increases employee control and decision–making ability.
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