Advantages Of Trades Unions

Advantages of Trades Unions. 1. Increase wages for its members. Industries with trade unions tend to have higher wages than nonunionised industries. 2. Counterbalance Monopsonies. In the face of Monopsony employers, Trades Unions can increase wages and increase employment. Monopsony employers are those who have market power in setting wages and employing workers. Traditionally, monopsonies occur when there is only 1 firm in a town, or type of employment. However, in modern economies, many employers have a degree of market power (monopsony). 3. Represent Workers Trades Unions can also protect workers from exploitation, and help to uphold health and safety legislation. Trades unions can give representation to workers facing legal action. 4. Productivity deals. Trades Unions can help to negotiate productivity deals. This means they help the firm to increase output; this enables the firm to be able to afford higher wages. Trades unions can be important for implementing new working practices which improve productivity. 5. Important for Service Sector. Modern economies have seen a fall in trade union power. This is because of a decline in manufacturing and rise in service sector employment. Service sector jobs tend to more likely to be part time and temporary; unions are needed to protect workers in these kind of jobs. Benefits of trade unions

In practice many firms choose to deal with trade unions as they can benefit not only the employee but also the employer. This is shown below: Benefits to an Employee

Benefits to an Employer

More powerful voice when bargaining as a group (e.g. for pay rises) as can threaten industrial action such as strikes Workers will have their individual rights better protected e.g. if dismissed unfairly or discriminated against

Cheaper and quicker to bargain with one trade union representative than individual workers Workers are better motivated if they feel their interests are being looked after by trade unions

Trade unions increasingly wish to be seen as working with employers to create a better and more competitive economy and not as organisations that stand in the way of change and increase costs for firms. They believe that both parties have mutual interests. This has led to more and moresingle union agreements (where an employer agrees to deal with only one union) but in return can often expect a no-strike deal from the union (where unions agree never to strike if a dispute cannot be settled).