In: Economics
What are the two types of union practices discussed in the chapter and how do these affect wages?
Short answer please.
Two types of union practices, and this affect wages are as under:-
Unions protect the rights of workers in specific industries. A union works like a democracy holding elections to appoint officers. The union officers are changed with the duty of making decisions beneficial for union participants. Industrial union and craft union are two types of trade union.
Industrial union:- industrial union encourage workers solidarity and makes negotiations easy because a single agreement covers all workers of a particular industry. One major drawback of this type of union is that the skilled worker in in IT field that their specific demand are not scientifically taken care of.
Craft union:- craft union are open to members of a certain trade /skill like navigators and pilots.the workers belonging to the same craft specialised skill or same occupation can form their Trade union irrespective of industry or trade they employed.
one of the top benefit of being a union worker is that worker enjoy
a better ways as compared to non union counterparts.Union workers
get about 20% more in term of wages compared to other in similar
jobs that aren't supported by a union. Union workers are also more
likely to enjoy consistent pay raises on a regular basis.this is
due to collective bargaining between the union and the employer
that results in a agreement setting out clear terms regarding pay
and wages.Because of union collective bargaining of labour
increases. Collective bargaining is the heart and soul of labour
union. Group of people such as the workforce at a company, bands
together to increase its negotiation power.where as a single worker
might feel that a certain new safety measure should be implemented
in his factory but he might have limited power to get the company
to install the new measure.