Examine how "the decline of trade unions and low levels of out of work welfare payments, and several other factors have all made it easier for firms to keep wages down'.
Labour Market - Essay Questions
- Examine how “the decline of trade unions and low levels of out of work welfare payments, and several other factors have all made it easier for firms to keep wages down’.
A group of workers in a industry who fight for their rights. These are workers who are unionised as one and they make sure that their workers don’t get exploited. The head of the trade union will speak up for the whole union and will try to meet up with their demands. The trade union is good for the workers as their can be many people involved they is a more greater chance of them being heard. The head of the union will try to increase the real pay and the earnings of their members. He will also try to protect the pay differences with other workers and will try to improve the working conditions. He will also try to prevent redundancies in jobs and will promote health and safety at work and will also protect this members from unfair dismissals. So as you can see the basic purpose of the trade union is the welfare of their union.
As we know the number of trade unions have fallen dramatically since 1979. This has be caused by various factors such as changes in composition of employment. This includes manufacturing deindustrialisation and downsizing. Also expansion of the service sector employment and also the rise in self employment and many more. But all of these factors have resulted in the trade unions to decline in numbers. This has lead for firms to keep the wages of workers low because trade unions are always trying to keep their wages of the union high. If the trade union numbers were high the firm would think twice before taking the risk. The reason for this is that unions can call up strikes, which is basically saying we won’t work until our demands are met. As there would be many in the trade union this would mean that there are a lot of workers not going to working resulting loss in productivity eventually leading to a loss in profit. This can also pressurise the firm due to the loss it would gain it doesn't. Some firms actually go with the trade unions but some compromise the situation until both the firm and the trade unions are happy. As there is a decrease the number of trade unions this means that the voice of the union is weak. This will mean that it will be pointless and much more difficult for the trade unions to call up a strike to protest as they would be less in numbers. This would give the firm an advantage, as it would put the wages down knowing that the unions won't strike against it or if they do they won't create a big impact. Also new policies and legislations make it much more difficult for the trade unions to put forward their demands. Also derecognising of the unions in some industry. Derecognition is when employers refuse to allow unions at the workplace or recognise them for purpose of negotiation pay or conditions. This also makes it easier for the firms to keep the wages down.
