Trade unions

Collective bargaining is the negotiation process between employers and a group of employees, usually represented by a trade union, to determine terms and conditions of employment. It aims to reach a mutually acceptable agreement.

Trade unions negotiate with employers on behalf of their members to secure better wages and benefits. They present evidence, such as the cost of living and company profitability, to support their wage demands.

Trade unions can negotiate for safer workplaces, reasonable working hours, and better facilities. They can also ensure that employers comply with health and safety regulations, enhancing the overall well-being of employees.

Membership levels can be influenced by factors like employment rates (higher rates, more members), legislation protecting workers, the perceived effectiveness of the union, and industry decline or growth. A strong economy often boosts union membership.

Benefit: Improved employee morale and productivity from better working conditions. Drawback: Increased labour costs due to higher wages and potential disruptions from industrial action, reducing profit margins.

Strong unions can raise labour costs, potentially making a firm less competitive if rivals in other countries have lower labour expenses. However, higher skilled and motivated workforces, resulting from effective union representation, could improve competitiveness in some sectors.