What are trade unions?
Trade unions are organisations that represent the interests of workers. They aim to protect members’ pay and working conditions, promote job security and provide a collective voice in negotiations with employers. Unions may be organised by occupation, industry or company and often affiliate to national confederations for greater influence.
Functions of trade unions
- Collective bargaining – unions negotiate with employers on wages, working hours, holidays, health and safety and other terms of employment.
- Representation – they represent workers in disputes and disciplinary proceedings.
- Protection – unions lobby governments for laws that protect workers (e.g. minimum wage, occupational health regulations).
- Education and training – many unions provide training programmes and advice on employment rights.
- Social and welfare benefits – some unions offer benefits such as strike pay, legal advice or insurance.
Advantages and disadvantages of trade unions
| Potential benefits | Potential drawbacks |
|---|---|
| Protect workers’ rights and improve wages and conditions; provide a collective voice; reduce exploitation | May push wages above market equilibrium causing unemployment; industrial action can disrupt production and reduce economic output |
| Offer training and support services | Increased labour costs may reduce firm competitiveness |
Trade union membership has declined in many countries due to changes in the structure of employment (e.g. growth of service industries and gig economy) and legislation limiting union power. Nevertheless, unions remain important in representing workers, particularly in the public sector and certain industries.
