Impacts of trade unions on the labour market: theories and measurement - Term Paper Example

(Trade Union legal Definition of Trade Union, 2009) The main purpose of a trade union was to bargain with the management for the betterment of the employees. Employees of different organizations could not enjoy any major benefits during the time and were exploited mercilessly. Only with the beginning of the formation of trade unions, the labor force realized their strength and value to the organizations. Associations called trade unions provided leaders to the shattered work force and started acting as a group.

This caused revolutionary changes in the overall management of workers and the labor market. With the coming of trade unions business organizations began treating the employees as human beings which was not at all even heard before the beginning of trade unions. Whenever the interest of the employees was not taken into consideration trade unions came forward to protect the interest of the employees. Trade unions resorted to industrial actions like strike, lockout etc. for getting the interest of the workers protected.

Collective bargaining and political lobbying were some of the methods of action adopted by labor unions. The beginning or trade unions had greater impact on the labor market. The power to influence the management was an added advantage for the trade unions. The legality of trade unions enabled them to enforce the management for getting things done for the employees. As a whole, the beginning of the formation of trade unions was a blessing for the employees and many a time a curse for the companies and business organizations.

However, the impact of trade unions upon the labor market was far reaching and considerable. Trade unions are legal associations to protect the rights and interest of the employees who are also the members. There was a time during which the employees were totally neglected and least considered by the management. An employee without the membership in