The Role of Trade Unions (Cambridge (CIE) IGCSE Business): Revision Note

What trade unions do

• A trade union is an organisation that represents the interests of its workers in negotiations with a firm’s management or owners

  • A trade union's main aim is to protect and advance the interests of its members in the workplace

  • Most trade unions are independent of any employer but try to develop close working relationships with employers

The functions of trade unions

• Trade unions are usually formed by the members of specific industries

  • Airline pilots have a pilots' union

  • Rail and sea workers have a rail and maritime union

  • E.g. The NEA is the USA's largest professional employee organisation, representing public school teachers and other support personnel at colleges and universities

• Workers pay a monthly fee to join a trade union

  • The fee is called a subscription

  • Membership ends when the member stops paying this fee

Benefits to employees of being a trade union member

• Almost 23% of UK employees in permanent positions belonged to a trade union in 2022 

  • Poland has the lowest level of trade union membership in the EU

  • Around 70% of workers in Scandinavian countries are trade union members

• Public sector industries tend to have the highest membership density

• Women are more likely than men to belong to a trade union

• Trade union members generally receive higher pay than non-union members

• Large trade unions are able to influence government decisions in favour of workers

Evaluation of trade union membership