What is a Trade Union?

A trade union (labour union) is an organization that protects the rights and interests of workers. Workers join by paying a subscription fee (membership fee).

• The fee helps cover administrative and legal costs.

• Trade unions negotiate with employers for better working conditions.

Why Do Trade Unions Exist?

Workers and employers often have different objectives.

Employers Want To:

• Maximize profits

• Minimize costs

• Maximize sales

Employees Want To:

• Higher wages and salaries

• Safe and healthy working conditions

• Better terms and conditions of employment

• More non-wage benefits

• Job security

Conflict Between Employers and Employees

Example:

• Workers want higher wages and shorter working hours.

• Employers may resist because it increases business costs.

Types of Trade Unions

1. Craft Unions

• Organize workers according to their skill or trade.

• Examples:

  • Engineers

  • Carpenters

  • Electricians

  • Printers

2. Industrial Unions

• Represent all workers in the same industry.

• Skills or job roles do not matter.

• Example:

  • Oil industry workers

  • United Auto Workers Union (USA)

3. White-Collar Unions

• Represent professional and office workers.

• Common in:

  • Teaching

  • Banking

  • Civil service

  • Local government

4. General Unions

• Open to almost any worker.

• Often have many unskilled workers.

• Examples:

  • Unite (UK)

  • Australian Workers Union

Why Some Professions Do Not Have Trade Unions

Some professions are controlled by professional bodies instead of trade unions.

Examples:

• Lawyers

• Accountants

• Engineers

• Doctors

These bodies:

• Set qualification requirements

• Control training and experience standards

• Regulate entry into the profession