In 2016, the trade union representing doctors in the UK was involved in collective bargaining with the government over proposed changes to doctors’ contracts. The trade union considered that the aim of the changes was to reduce the cost to the government of providing healthcare. It may also result in fewer individuals training to become doctors in the future.
Identify two influences on the strength of a trade union’s collective bargaining power.
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2 marksIn 2016, the trade union representing doctors in the UK was involved in collective bargaining with the government over proposed changes to doctors’ contracts. The trade union considered that the aim of the changes was to reduce the cost to the government of providing healthcare. It may also result in fewer individuals training to become doctors in the future.
Define the term trade union
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2 marksIn 2016, Argentina’s annual inflation was 20%, down from 40% in 2015. Inflation had been high since 2003. Wages were constantly adjusted upwards. In addition, some employees demanded more non-wage benefits. Industrial action, often in the form of strikes called by trade unions, became more common in Argentina.
Define the term 'strike'
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2 marksThe government of Slovenia has introduced a range of supply-side policy measures to influence the country’s inflation rate. Among other factors affecting the economy is a change in trade union membership and strength.
State two factors that influence trade union power
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2 marksTrade union membership is much higher in Sweden than in most countries. In 2019, 70% of Swedish workers were members of a trade union. More than 85% of Swedish workers are employed in the tertiary sector, compared with only 2% in the primary sector. Swedish workers spend their incomes on a variety of products some of which, e.g. sweets, are demerit goods. Sweden has the 7th highest per head consumption of sweets in the world.
State two functions of a trade union
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Explain, using information from the extract, two reasons why the power of trade unions may decline in the future
Refer to the source material in your answers
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In 2016, the trade union representing doctors in the UK was involved in collective bargaining with the government over proposed changes to doctors’ contracts. The trade union considered that the aim of the changes was to reduce the cost to the government of providing healthcare. It may also result in fewer individuals training to become doctors in the future.
Explain the likely impact of trade unions on the welfare of their members.
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In 2016, Argentina’s annual inflation was 20%, down from 40% in 2015. Inflation had been high since 2003. Wages were constantly adjusted upwards. In addition, some employees demanded more non-wage benefits. Industrial action, often in the form of strikes called by trade unions, became more common in Argentina.
Analyse the impact of strikes on an economy.
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4 marksIn 2016, the trade union representing doctors in the UK was involved in collective bargaining with the government over proposed changes to doctors’ contracts. The trade union considered that the aim of the changes was to reduce the cost to the government of providing healthcare. It may also result in fewer individuals training to become doctors in the future.
Explain the purpose of collection bargaining
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The government of Slovenia has introduced a range of supply-side policy measures to influence the country’s inflation rate. Among other factors affecting the economy is a change in trade union membership and strength.
Discuss whether or not increasing the strength of trade unions will benefit an economy.
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8 marksIn Tunisia, resource allocation decisions are made by both the public sector and private sector. Tunisia’s GDP increased from 2014 to 2018 but its households saved less. Income levels can be affected by changes in trade union activity and the foreign exchange rate. From 2014 to 2018, Tunisia experienced a number of strikes organised by its largest trade union, the Tunisian General Labour Union. There was also a significant fall in its foreign exchange rate.
Discuss whether or not trade union membership is beneficial for firms
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