Trade Union in Wage Determination | A Level Economics

This presentation explores the critical role of trade unions in the wage determination process. It delves into how these associations advocate for fair compensation, negotiate collective bargaining agreements, and influence labour market dynamics. Viewers will gain insights into how successful trade unions are in the different types of labour markets.

1. TRADE UNION
In Wage Determination
Economics

2. WHAT IS A TRADE UNION?
2
▪A trade union is an association formed by workers to
promote their interests, e.g. negotiating for higher
salaries, better working conditions, etc.
▪It is usually formed by workers in the same occupation
or group of occupations.

3. TRADE UNION IN PERFECTLY
COMPETITIVE LABOUR MARKET
3
W
T
Q
E Q
P
S
E
D
E
E
Wage rate
Quantity of labour
W
E
Q
T
B

4. TRADE UNION IN MONOPSONY
4
S = AFC
Wage rate
Quantity of labour
MFC
MRP = D
Q
T
Q
M
W
T
W
M
W
P
A
B

5. PERFECTLY COMPETITIVE MARKET
VS MONOPSONY
5
Perfectly competitive market Monopsony