Advantages of Trade Unions

Through collective bargaining and the laid down procedure for negotiations between the Unions and Management, the Unions have been able to derive certain advantages for both the management and the members (employees). Some of these advantages are:

•    There is a professional approach to the handling of disputes. The employees do not have to meet the employers over such issues and both the negotiating parties are competent enough to handle such disputes.

•    There arises both self respect and self reliance among workers because they know that their interests are well taken care of by the Union. When disputes arise the workers feel they need not worry as there is someone to look up to who will handle the issue competently, being an equal match to the management.

•    Trade Unions are of special importance to the management in that they help in avoiding unnecessary disruptions of work during disputes. Such disruptions can lead to extra-ordinarily heavy losses. For instance, such companies like those producing milk may incur losses in that their products if not sold for some time can go bad easily. This issue is curbed by Unions taking over to negotiate with management instead of the whole labour force.

•    Wages is one of the most crucial issues which trade unions play a vital role in determining. They help in maintaining uniform wages throughout the industry. The logic behind this is that people in one firm or individuals will not claim to get what others in other firms in the same industry are not getting. So there is generally some harmonisation of wages throughout the industry. People feel satisfied that they are getting a pay for their work input that compares well with the pay of people doing similar kind of work. Job satisfaction may be given by the following:

    Job satisfaction     =    Output (Income)    x   Referent to other
                                         Input (Work done)