What Are The Advantages And Disadvantages Of Trade Unions?


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Those are some advantages of trade union :
1) it's protecting the interest of it's members
2) it's build the relationship between the employee and employer
3) it's organize social , recreational and culture activities among the members  

those are some disadvantages of trade union :
1) If labour markets are competitive, higher wages will cause unemployment. Trades unions can cause wages to go above equilibrium through the threat of strikes e.t.c. However when the wage is above the equilibrium it will cause a fall in employment.
2) Trades unions only consider the needs of its members; they often ignore the difficulty of those excluded from the labour markets, e.g. The unemployed.
If unions go on strike and work unproductively (work to rule) it can lead to lost sales and output. Therefore their company may go out of business and be unable to employ workers at all.
3) If unions become too powerful they can reduced for higher wages, above the rate of inflation. If this occurs it may contribute to general inflation. Powerful trades unions were a significant cause of the UK's inflation rate of 27% in 1979.
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