3.4 Trade Unions

2026 📋 Syllabus Objectives

By the end of this topic, you should be able to:

  • 3.4.1 Define a trade union and explain its key roles, including collective bargaining on wages, working hours and conditions, protecting employment, and influencing government policy.
  • 3.4.2 Explain the role of trade unions in the economy — how they negotiate, take industrial action, and represent workers.
  • 3.4.3 Analyse the advantages and disadvantages of trade union activity from the viewpoint of workers, firms, and the government, and understand the factors that affect how powerful a trade union is.

📘 Main Content

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3.4.1 What is a Trade Union?

A trade union is an organisation made up of workers who join together to protect and improve their pay and working conditions. Think of it like a team — one worker asking for a pay rise has little power, but thousands of workers asking together are very difficult for an employer to ignore.

Why Do Workers Join a Trade Union?

When workers join a union, they gain several important benefits:

  • Higher pay — unions negotiate better wages on behalf of all members
  • Better working conditions — safer workplaces, reasonable working hours, proper breaks
  • Insurance and healthcare — some unions provide financial protection for their members
  • Greater bargaining power — a group is far more powerful than an individual
  • Legal advice — if a worker is treated unfairly, the union can provide legal support
  • Protection against unfair dismissal — if a worker is fired without a good reason, the union can fight for them

Types of Trade Unions

There are four main types of trade unions, each representing a different group of workers:

TypeWho They RepresentExample
Craft UnionWorkers who share the same skill or occupationPlumbers, carpenters
General UnionWorkers from many different industries and skill levels — anyone can joinAustralian Workers Union
Industrial UnionAll workers within one specific industryNational Union of Mine Workers, rail workers
White Collar UnionProfessionals and office-based, salaried workersPilots, teachers

💡 Easy way to remember: Craft = one skill. General = everyone welcome. Industrial = one industry. White Collar = professionals.

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