A any upcoming problems, for example health

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A trade union is a organization consisting of worker and union leaders, who come together to protect and promote their common goals in their respective workplace. Therefor many advantages exist for the workers, including increase of wages. Industries where trade unions are present tend to have a higher payment to their workers compared to the non-unionised industries (“Advantages and Disadvantages”). Trade Unions have a great impact on a firm and can lead to fairer payment, causing the productivity to increase since when a worker thinks he receives higher payments they feel more loyal to the company and seek to improve and want success in the firm(“Advantages and Disadvantages”). The Trade Union represents the workers meaning it can stand up for them and tackle any upcoming problems, for example health and safety legislation and inequality or even help improve the working conditions (“Why trade”). However, Trade Unions also come with a negative side to them. Trade Unions create unemployment when demanded higher wages since the firm is spending to much money on fewer employees, meaning less staff can be afforded. If a Union has to much power and is disruptive a firm may stop investing into employment with the fear to non-cooperative unions or fear of frequent strikes (“Advantages and Disadvantages”). If the unions gains to much power and the wages are increased to much it could cause wage inflation haming the whole economy of the country. According to the article Advantages and Disadvantages of Trades Unions firms prefer to invest in another country with better labour relations if the trade unions are non-cooperative and if frequent strikes occur. For example, in the 1970s, the UK experienced widespread industrial unrest and this is cited as a factor behind the UK’s relative decline(“Advantages and Disadvantages”). Another problem with Trade unions are that non-members are ignored and mostly the trade unions do not care about the non-members (“Advantages and Disadvantages”). Furthermore if the members go on strike huge productivity lose is present and will negatively affect the firms. If the company is interrupted to long the firm possibly will be out of business, meaning the firm eventually could not employ any staff at all.  In conclusion I think that the trade unions have a positive impact on the worker, making them feel safer meaning the productivity increases but the trade unions could cause fear for the owner since a trade union comes with negative sides to it. The trade union will insure the worker with back up and will stand up for them. The possibility of a increase in the wage is very high and the trade union will fight for other big factor for the worker, such as speech / equality, health and safety rules, improved working conditions, reduce accidents and much more (“Why trade”). Of course the trade unions bring fear to the company owner since they create unemployment because the firms has to pay their worker much more meaning less staff can be recruited. Eventually this will affect the productivity rate and causing the company business to fall, possibly resulting in bankruptcy. Overall I think that trade unions bring a bigger positive side with them, then a negative sides.

Categories: Inflation


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