My personal experience of unions here in Sweden is that they are uncompromising and unfriendly to the a business, even if it is only run by a husband and wife, and both are working 24/7 to keep the business floating, and neither is able to take a salary because employees come first, when the going gets tough. There were probably other mitigating factors too. That was sudden, why? Well it seems 1) the unions were not very compromising, and 2) any loan from the bank needed a personal guarantee, which given the COVID-19 situation would be unwise, most likely lead to personal ruin.

With COVID-19 their revenue dropped by 90% and they took a drastic decision to declare bankruptcy. It was a family business ran jointly by man and wife. Normally, it can be difficult for a person to bring their grievance because of the risk that it will lose merit.I read an article a couple of days ago of an entrepreneurial business which had grown to 12 employees with annual turnover of MSEK100 (MEUR10K). It is unethical and illegal for an employer to terminate an employee who is a union member and has contacted their union with such issues until the matter is resolved. Unions can also help guarantee job security. In addition, workers can demand a certain wage rate, a safe work environment, a pension plan, bonus schedules, holidays, etc., so unions play a crucial role in obtaining other benefits. The strong bargaining power of unions ensures a lot of leeways to demand better working conditions for employees. The same is true for trade unions: the more employees demand their rights, the greater the chances of being enforced. In economics, the higher the demand, the greater the supply chance. Unions have the power to demand the right pay because it is an association of a group of workers. Advantages of Trade UnionsĪs explained above, unions have bargaining power with the following advantages. In return, the team or individual receives an agreed-upon commission. The employers, however, think they are paid fairly, which is where the productivity bargaining power comes to the sales team’s rescue, as the union agrees to increase sales performance. The union believes that the sales team is paid less for the hard work and time. Let us take the example of a real estate sales team. Different countries have different legal acts related to trade unions. Unions are usually legally registered with government bodies. Unions usually fight to improve the situation of several workers in an industry. The interest can be monetary, i.e., wage increases, or non-monetary such as holidays, job security, health care, etc. Unions fight for the common interest of their members. However, when the union bargains collectively for the exact cause, management is forced to address it. The employer may overlook when an individual makes a demand. Unity in BargainingĪs mentioned earlier, unions are nothing more than a group of people who come together to fight for their common interests. It is an association of workers to improve individual workers or a group of workers in a particular industry or segment. The first and most crucial characteristic of trade unions is the association of many workers. The characteristics of labour unions are as follows.

What are the effects of trade unions on wages and employment? Unions bargain effectively for workers’ rights and fairness in wages, working conditions, and other benefits.

The union ‘GMB Union’ tries to solve the problem by mediating between refuse workers and the management to bring a solution. Although they have received an increase in the payment, it does not meet their conditions.

Price Determination in a Competitive MarketĪ recent example of a union and its ongoing strike is of the refuse workers striking for higher wages from employers (the government) since Covid-19.

Market Equilibrium Consumer and Producer Surplus.

Determinants of Price Elasticity of Demand.

Cross Price Elasticity of Demand Formula.

Effects of Taxes and Subsidies on Market Structures.

Monopolistic Competition in the Short Run.

Monopolistic Competition in the Long Run.

Behavioural Economics and Public Policy.

Unions in small vs big business