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TRADE UNIONS :warning: (Employment effect (Can depend on the employer…
TRADE UNIONS :warning:
ROLE OF TRADE UNIONS
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'There's power in a factor, power in the land, power in the hand of the worker, but it all amounts to nothing if together we don't stand ,there is power in a union'
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Objectives:
a) Improved wages
b) Improved terms & conditions
c) full employment
d) industrial democracy
e) voice in government
….collective bargaining
Represent Workers
Protect workers from exploitation,
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Employment effect
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Productivity deals
Bargain for higher wages in return for improving working practices and implementing higher productivity
Right to Manage model - firms set employment level consistent with union wage and own demand for labour
Demand for labour in unionized sector could fall with corresponding increase in non-union sector if wages can fall
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Wage effect
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STRIKES
Employer Concession Curve (ECC) of firms slopes UPWARDS - reflects GREATER willingness to concede HIGHER wage rise at cost of strike action
lost sales, output and profits from strike action
WCC - shows increasing cost of strike action - slopes DOWNWARDS - reflects cost in terms of income & job security loss
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Threat Effect
INCREASE in non-union wage - responding to threat of unionization - union workers obtaining higher wages
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Corporatism
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Means HIGH taxes, EPL & welfare - raising unemployment
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Unions & Equality
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Pay at bottom rises, 90:10 ratio falls
Simultaneously, unemployment for bottom group RISES
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