Labour Unions or Trade Unions Are Organizations Formed by Workers From Related Fields That

Question
It is possible to identify six distinct aspects of trade union functions: power, economic
regulations, job regulations, social change, member services and self-fulfilment. With the
use of four examples, discuss any four functions of the trade union.
Answer
Labour unions or trade unions are organizations formed by workers from related fields that
work for the common interest of its members. They help workers in issues like fairness of pay,
good working environment, hours of work and benefits. They represent a cluster of workers
and provide a link between the management and workers.
The trade unions perform many functions but it is possible to identify six distinct aspects of its
functions: power, member services, social change, self-fulfilment, economic and job
regulations.
Power-The ability of a person, group, or organization to exert influence over another party in
a negotiation in order to achieve a deal which is favourable to themselves is called ‘bargaining
power.’ This type of power exists in all trade unions. This may include the negotiation of
wages, work rules, complaint procedures, rules governing hiring, firing and promotion of
workers, benefits, workplace safety and policies
Bargaining Power is the ability for firms or workers to get what they want. TTUTA exercises
its power for the teachers in this country in these ways- scheduled march, empty classrooms,
protest, rest and reflect. In taking these actions, is to ensure that the CPO is been put into a
position to focus seriously on is proposal e.g. upgrades, salary increase, backpay for teachers
etc. it is said that TTUTA paves the way for other trade unions to negotiate successfully.
Social Change refers to any significant alteration over time in behaviour patterns and cultural
values and norms. During the Industrial Revolution, society wrestled with these massive
economic and social changes, labour problems arose due to oppression, exploitation of workers
and abusiveness from superiors. Social changes took place within the Revolution: increase
population, urbanisation, new social classes, diversification, family life etc. Changes took place
socially, economically, politically and in labour as well as theoretical perspectives. As trade
unions move towards the 21st Century social changes continue such as the move from
international trade unionism to globalization solidarity where the internet link all trade unions
1
locally to others all over the world, feminising in the workplace – more women than men seeing
in the workplace and many more.
Job regulation refers to the rules that govern the content of the employment relationship and
the behaviour and activities of employees, employers, and their representatives. The study of
job regulation is therefore the study of the creation, application, and effects of job or
employment rules such as The Industrial Relations Act, National labour law profile: Trinidad
and Tobago. These help to make workers aware of their rights which govern them, how they
are protected, their rights and expectations on the job.
Economic regulation is broadly defined as imposition of rules by government, backed by the

use of penalties that are intended specifically to modify the economic behaviour of individuals
and firms in the private sector. Trade unions in a competitive market successfully bargain for
higher wages, however, this situation can have the effect of causing unemployment. Under
certain conditions, trades unions can bargain for wages above the competitive equilibrium. This
can be achieved by restricting the supply of labour (e.g. closed shops) or threatening to go on
strike.
However, Trades Unions can be beneficial if:
 They operate in an industry with a Monopsonistic employer

 They help to increased productivity by bringing in new working practices
 Demand for labour is inelastic
 Efficiency wage theories – when higher wages lead to higher productivity.
This is why economists who believe labour markets are generally competitive argue that trade
unions can cause inefficiency and unemployment. Therefore, trade unions can increase wages
for members – but those outside the union may be more likely to experience unemployment.
In the real world, labour markets are rarely perfectly competitive. This is because workers or
firms usually have the power to set and influence wages and therefore wages may be set to
levels different than anticipated by Marginal Revenue Product.

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Question

Economic regulation is broadly defined as imposition of rules by government, backed by the

However, Trades Unions can be beneficial if:

 They operate in an industry with a Monopsonistic employer

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