When might a trade union be most likely to achieve a good pay deal for its members?
when labour costs are a high percentage of the firm’s total costs
when rival firms successfully introduce an alternative product
when the firm is introducing capital-intensive production
when the firm is making large profits
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What is a trade union?
a business organisation in which all workers share ownership
an area where there are no barriers to trade
an organisation of employers from an industry
an organisation that represents the interests of workers
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When is a trade union likely to have more power to increase its members’ wages?
when imports are increasing
when labour supply is increasing
when output is increasing
when unemployment is increasing
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1 markIn relation to Trade Unions, what is a 'strike'?
A negotiation meeting between workers and management
A gathering of workers to discuss industry trends
A temporary stoppage of work by employees to demand better conditions
An event where workers showcase their skills to potential employers
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1 markWhat is a 'collective bargaining agreement' negotiated by trade unions?
An agreement between workers of different industries
An agreement between a company and its competitors
An agreement between a trade union and government agencies
An agreement between a trade union and an employer regarding terms of employment
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Which task is not a function of a trade union?
agreeing the minimum number to be employed on a particular job
deciding on the level of a national minimum wage
negotiating working hours and conditions of work
providing legal advice on unfair dismissal
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A German car manufacturer builds a factory in India. A group of Indian workers at the factory join a trade union.
What would this trade union be expected to do for the workers?
Encourage the workers to bargain individually with the employer.
Negotiate with the German government on tariff reductions for Indian-produced cars.
Promote an advertising campaign to sell more Indian cars.
Protect the workers against unfair dismissal by the employer.
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What would put a trade union in a strong bargaining position to negotiate higher wages for its members in a particular firm?
The demand for the product produced by the workers has an inelastic demand.
The economy is experiencing high unemployment.
The proportion of the firm’s workers in the union is low.
Wage costs are a high proportion of total costs for firms in the industry.
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1 markWhat is a potential disadvantage of trade unions from an employer's perspective?
Increased worker productivity due to better working conditions
Improved communication between management and employees
The possibility of strikes and disruptions to business operations
Greater access to skilled labor in the market
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1 markWhich of the following is not an advantage of trade union membership for workers?
Workers no longer need to negotiate with management on their own as they benefit from collective bargaining
Workers receive better pay than non-unionised workers
Individual workers may not agree with specific demands made by the trade union on behalf of all the workers
Workers receive specialised job training & free legal advice from the union
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A trade union succeeds in raising the wages in an industry above the current equilibrium wage.
How would the demand and supply of labour change?
| change in quantity of labour demanded | change in quantity of labour supplied |
A B C D | fall fall rise rise | fall rise fall rise |
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What will make it harder for a trade union to increase the wage rate for its members, without reducing employment?
a switch from short-term to long-term fixed contracts of employment
an increase in the number of substitutes for the product
growth in an economy and increased demand for labour
lower price elasticity of demand for the product
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1 markWhat is a potential impact of a strong trade union on government expenditures?
Decreased spending on social welfare programs and social security payments
Increased government revenue due to corporate tax cuts
Higher spending on unemployment benefits
Reduced spending on public infrastructure projects
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1 markHow might trade unions impact a firms competitive advantage?
By pressuring for lower product prices to attract more customers
By advocating for higher profit margins for businesses
By increasing labor costs and potentially reducing profitability
By encouraging firms to invest more in advertising
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1 markWhich of the following would not influence the collective bargaining power of trade unions?
Wage levels as proportion of total costs
The productivity of labour
Overall size of the trade union
Length of negotiations for a fair termination process when firms are struggling in an economic downturn
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