9 Trade Unions
9.1 Features of Trade Unions
(a) Types of Trade Union
A trade union is an organisation which represents workers. There are four main
types:
(i) Craft unions representing skilled workers from one occupation. For
example, SOGAT 82 (printers) and the AEU (engineering).
(ii) General unions representing mainly unskilled workers from many occupa-
tions. For example, the TGWU (Transport and General Workers' Union).
(iii) Industrial unions representing mainly workers in one industry. For
example, the NUM (miners' union).
(iv) Professional or white-collar unions representing skilled workers in mainly
service industries. For example, the NUT (teachers' union).
(b) Functions of Trade Unions
Trade unions aim to:
(i) Improve the pay of workers.
(ii) Improve working conditions and secure longer holidays.
(iii) protect members' jobs.
(iv) Provide local, social and welfare facilities.
(v) Influence government policy by sponsoring Members of Parliament and
contributing money to political parties.
(c) Organisation of Trade Unions
Each trade union has its own internal organisation. Generally:
(i) Small groups of workers elect a local spokesman (shop steward).
(ii) Every area has a branch which sends delegates (representatives) to a yearly
national conference.
(iii) Conference passes resolutions (policies) and elects a national executive.
Only the national executive can call an official strike.
(iv) The entire membership elects a general secretary. The general secretary acts
as the union's spokesman and manages everyday affairs, usually until he
reaches retirement age.
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R. Young, Work Out Economics GCSE
© R. Young 1987
(d) The Trades Union Congress
The Trades Union Congress (TUC) is made up of over 90 unions representing
more than 11 million members. An annual conference decides overall union
policy and elects the General Council. The General Secretary of the TUC is the
trades union spokesman in any negotiations with the government or employers'
organisations. The TUC has no power to initiate or halt an individual union's
industrial action.
9.2 Employers' Associations
Employers' associations represent the employers in a particular industry and
negotiate with unions.
The Confederation of British Industry (CBI) is made up of over 300
employers' associations and nearly 14000 individual firms. The CBI represents
employers in negotiations with the government and the TUe. The Director
General acts as spokesperson for the CBI.
9.3 Wage Negotiations
(a) Collective Bargaining
In the nineteenth century workers used to negotiate their own pay and
conditions with their employer. Collective bargaining occurs when workers allow
the union to negotiate on their behalf. Negotiation can be with an individual
employer or an employers' association.
(b) Types of Dispute
Disputes can arise over pay, working conditions, redundancies or restrictive
practices which include:
(i) A closed shop when a union insists that all workers in a place of work are
members.
(ii) Demarcation when a union insists that only their members do certain jobs.
(iii) Blacking goods when the union refuses to handle goods produced by a firm
in dispute with a union.
(iv) Over-manning when the union insists on a large number of workers for one
job.
(c) Industrial Action
If negotiations break down employers may lose output while workers may lose
some pay. More often than not a compromise is found. However, sometimes one
party resorts to industrial action. Unions can:
(i) Work to rule and do the bare minimum of work.
(ii) Impose an overtime ban and refuse extra work.
(iii) Strike and refuse to work altogether.
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