Contribution of Trade Unions for Employees, Organizational and Economic Growth

Running head: Trade Union

Trade Union 1
Contents
Introduction.................................................................................................................................................2
Analysis........................................................................................................................................................3
Employees growth level..........................................................................................................................3
Organizational growth level.....................................................................................................................8
Economic growth level..........................................................................................................................10
Conclusion.................................................................................................................................................14
References.................................................................................................................................................15

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Introduction
As per De Sousa (2012) trade union can be defined as a group or association of workers in which
the workers associate in order to represent their interests or goals. The importance of trade
unions for the employees is that their members tend to have higher wages as compared to those
who are not associated with the trade unions.
The trade unions act as representatives for the workers in the context of legal matters. They also
protect the rights of workers. They are the main means of organizing and safeguarding the rights
of workers regarding their jobs. The collective bargaining agreement which is also known as the
union contract formulates the basic terms and conditions of work (Lillie, 2013).
The union helps in giving voice to the workers and provides them with a mode to gain a measure
of integrity and security on the job. Certain strategies are pursued by the unions which serve the
interests of the members (Emmenegger, 2014).
These include representations of the members and bargaining with the employers and hiring new
people. It also comprises of involving in political action and supporting policies for improving
the working conditions of the employees.
The unions are formed by the workers so that they are authorized to say over the workers, hours
of work, working conditions and many problems which arise in the relationship between the
employers and workers (Fernie, 2013).
According to the opinion of Chalmers (2013) trade unions are important as they assist in setting
standards for the level of skills, required education, wages, working conditions and quality of life

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being led by the workers. Laws are also established by the unions which work for the
improvement of the conditions of a job for their members.
Workers have less power when they work on their personal level. So, acting together in a group
can have a real impact on the desired changes to be made in their favor. The trade unions act as
a collective voice for the workers. They act a watchdog for the workers and use their authority
for making sure that the rights of the workers are safeguarded under the law.
So, this literature review critically argues on the contribution of the trade union movement for
the growth level of economic, organizational and personal growth of employees with the help of
certain examples from various countries.
Analysis
Trade unions employ collective bargaining for the benefit of workers. They can help in the
economic, organizational and personal growth of employees in the following ways.
Employees growth level
As per Kaufman and Bennett (2017) trade unions have an enormous impact on the labor market
and societies. They assist the workers in placing their demands in front of the management while
avoiding conflicts. One of the benefits of being associated with the trade unions is that the
workers can initiate for collective bargaining with the management along with participating in
the training and leisure events at the workplace.
The trade unions are known to promote wellbeing at work. They manage all the issues
confronted by the workers at work. They do not charge anything from the organizations and

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reduce the stress level of the employees. They improve the work-life balance of the workers and
increase their overall wellbeing.
It was further supported by Freeman and Han (2012) .According to their opinion, when the
employees have an effective voice and they have the ability to transform things at the workplace
such as safety and health, improving the supervisor’s attitude, then there are more likely to stay
at the company. It would directly affect the development of the organization.
So according to these two scholars, there is a positive impact of the collective bargaining on
absenteeism of the workers. Therefore, trade unions help in the growth of the companies. Trade
unions also encourage the participation of the workers as shareholders.
According to a survey, the perception of the workers towards the quality of work is more
positive in the companies where the trade unions act as their representative. It is crucial for all
the employers of all the sectors as high work quality can result in better productivity and less
labor turnover (Bosch, 2015).
According to the opinion of Alberti, Holgate and Tapia (2013), it can create influence on the
entire society surrounding those, thereby making propositions for developing the legislation
regarding their workplace. The members of the trade unions are entitled to a secure future with
regards to employment and membership advice and availing the services of a lawyer and legal
information.
The workers can also seek advice related to the generation of earnings upon their unemployment
and assistance of a shop steward at the workplace. They are also entitled to free of cost

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membership and leisure activities such as cottages, holiday shares, discounts on trips and
insurances (Hyman, 2012).
The trade unions also represent the interests of the members in the private sector such as retail
trade, tourism, leisure time industry, tourism and restaurant, personal care and security services.
The members are provided with assistance and security during their work period (Fossum, 2014) .
As per Meardi (2012), the unions also verify that proper wages are paid to the workers and
whether the collective agreement is being followed at work. For example, in Finland , it is
considered normal for the employees to join the trade unions. In Finland, the Finnish trade union
is the main organization which represents the interest of around one million workers from 20
trade unions in the country.
The trade union safeguards and promotes the mutual interests of the employees with the help of
collective action. With the help of its leadership, it negotiates with the employers and the
management on issues such as labor contracts etc. Thus union representation and collective
bargaining are the keys to the growth of workers (Marginson, 2015).
The unions help the workers to gain an equal share in the wealth they create, thereby improving
their working conditions and assisting them in gaining job security. They help in transforming
the political, social and educational environments which are associated with the rights of the
workers. It includes the right to bargain, right to organize and the right to settle the terms and
conditions of employment (Culpepper and Regan, 2014).