0264 · 2.2.5The role of trade unions
Cambridge IGCSE Business (0264) · Topic 2, People in business · 6:11
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In this video
- 0:00Trade unions and membership benefits. Explains what trade unions are, how subscriptions fund them, and the support members can receive.
- 1:24Union support and representation. Explains collective bargaining, legal representation, health and safety, redundancy support, training and discounts.
- 3:40Applying union benefits to a factory. Uses a factory example and exam-style answer to link union actions to employee benefits.
Transcript: The role of trade unions
Trade unions and membership benefits
0:00Imagine employees at a factory who want better pay and safer equipment. Each person could approach the manager separately, but presenting their concerns together gives them a stronger voice. A representative can explain their shared problems and negotiate improvements. By the end of this video, you will understand what a trade union is and why employees choose to become members. An employer is a person or organisation that hires employees to work for them.
0:25Pay, working hours and workplace safety all affect the experience of doing a job. Managers make decisions about these matters, while employees have interests they want protected. A single employee may find it difficult to negotiate changes or handle a disagreement alone. A trade union is a group of workers who have joined together to protect and promote their interests, such as pay, working conditions and job security. A subscription is the regular fee each member pays to belong to the union.
0:52These contributions help fund representatives and services. A union can represent employees across several businesses within an industry or occupation. Membership can bring collective bargaining, legal advice and representation, better health and safety, support over redundancy terms and job security, and other services. These benefits address different situations. Some concern improvements for a whole group, while others help an individual facing a particular problem. Their shared purpose is to give employees greater support when dealing with employment matters.
Union support and representation
1:24Collective bargaining is negotiation between an employer and employee representatives over pay and working conditions. The union presents the concerns of all its members together. A manager then faces one shared request backed by the whole group. This gives employees more bargaining power than one person alone, because the employer depends on their combined work to keep the business operating. The process begins when members explain their concerns to a representative.
1:48After gathering evidence, that person puts a proposal to management. Both sides negotiate over what changes are possible and acceptable. An agreement might improve pay, breaks or working hours, although the outcome depends on the employer’s resources and the strength of the case. Union membership also gives employees access to legal advice and representation. Advice helps an employee understand their rights and the steps available during a disagreement. Representation means another person speaks or acts on their behalf.
2:17An experienced representative can help prepare evidence and present the case clearly at a hearing. Willow Café serves meals and drinks. Unfair dismissal is ending an employee’s employment without a valid reason or without following the correct procedure. One employee there believes the manager dismissed her unfairly. A union adviser can explain whether she has grounds for a case and help prepare the necessary documents. Better health and safety is another benefit for members.
2:44Employees can report hazards to a union representative, who raises these concerns with management. At a manufacturer, this might involve requesting protective equipment or safer machinery. Removing a hazard reduces the risk of injury, so employees gain a safer place to work. Job security means the likelihood that an employee will keep their job. Redundancy is when an employee loses their job because the job is no longer needed, through no fault of their own.
3:09Harbour Hotel provides rooms for guests, and management plans to cut some roles after a fall in bookings. A union can negotiate moves to other roles and fair redundancy pay, so affected members keep work or receive compensation. Some unions offer other services, including training and discounts. Training can develop an employee’s skills, which helps them qualify for different roles in the future. Members also get lower prices on particular goods through union discounts.
3:34What is offered varies between unions, so employees should check what their membership includes.
Applying union benefits to a factory
3:40Cedar Components makes car parts and has thirty employees. Several of them want improved pay and have reported damaged protective gloves. They belong to a trade union and ask their representative for help. Each concern links to a specific benefit of membership. Start with the pay concern, because it affects several employees. Their representative gathers the requests and negotiates with management on their behalf. Collective bargaining gives the group a stronger voice than an individual negotiating alone.
4:08This can help members secure improved pay, although any increase depends on the agreement reached. The damaged gloves create a separate health and safety concern. A representative records the problem and asks management to provide suitable replacements. Once the employer supplies effective protection, the risk of hand injuries falls. Employees at the factory therefore gain safer working conditions. Keep the scope of these benefits precise. Any improvement a union wins comes from its talks with management.
4:36Legal representation supports an employee’s case, while the result rests on the evidence and the law. Membership provides collective strength and practical assistance, funded by the subscription. Industrial action is when employees act together to put pressure on their employer. During a strike, employees refuse to work for a period. If negotiations fail, a union may organise industrial action such as a strike. Negotiation and representation remain the centre of a union’s everyday role.
5:03Always connect a particular service to the improvement it offers employees. An exam-style question could ask you to explain two benefits to employees at Cedar Components of being trade union members. Explain means set out purposes or reasons, say why and how, supported with relevant evidence. Select benefits that match the pay concerns and damaged gloves. Develop each answer through the union’s action and its possible effect on employees. Collective bargaining gives members a stronger negotiating position over their shared pay concerns.
5:34Their representative presents a combined request to management, which can help secure improved pay. Better health and safety is a second benefit. Raising the damaged glove problem with management can lead to suitable replacements, so the risk of hand injuries falls. A trade union is a group of workers who have joined together to protect and promote their interests, such as pay, working conditions and job security. Its strength comes from organised representation and shared support.
6:00Members gain help with negotiations, disputes, safety and redundancy terms, plus training and discounts. Linking each benefit to the union’s action makes its role clear.