ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Factors influencing the bargaining power of the trade union include trade union density, workers’ bargaining power, economic environment, government policies, and nature of the labour market. In a competitive labour market, the bargain for higher wages by trade unions can come at the expense of employment.

Detailed explanation-2: -Reduced Economic Inequality Trade unions benefit the economy. As unions fight for wage rates and better working conditions, raising workers’ living standards usually helps reduce economic inequality.

Detailed explanation-3: -UP Unemployment Rate. As unemployment decreases, worker power rises, as labor is generally in a stronger position to pick and choose among jobs.

Detailed explanation-4: -The impact of unions Unions are most powerful in influencing the position of workers when: The demand for the product is inelastic – this means firms are more likely to meet wage demands. The product or service is a strategic one – such as power worker’s unions, or the union of transport workers.