6.6: Labour Unions and the Economy

• I can describe what a labour union is and what it does.

• I can explain how unions affect businesses and workers.

• I can describe how unions impact supply and demand and economic decision-making.

Sticky-note Storm

A labour union is an organized group of workers who unite to make decisions about conditions affecting their work.

Unions negotiate with employers on behalf of workers (this process is called collective bargaining).

List reasons why a worker might join a union.

Labour Union - An organized group of workers formed to protect and advance their rights and interests.

Collective Bargaining - Negotiation of wages and other conditions of employment by an organized body of employees.

Strike - A work stoppage caused by the mass refusal of employees to work, usually to enforce demands.

Supply and Demand - Economic model that determines prices in a market economy based on availability and desire.

Mixed Economy - An economic system combining private and public enterprise.

Market Economy - An economy where decisions are driven by supply, demand, and competition with minimal government involvement.

What is a labour union?

• Origin during the Industrial Revolution.

• Purpose: protect workers' rights.

What do unions do?

• Negotiate wages, working hours, job security, safety standards.

• Use tools like strikes, collective bargaining, and grievances.

Impact on businesses:

• May lead to higher wages and costs.

• Can lead to better retention and satisfaction.

Unions in a mixed economy:

• Governments may support or regulate union activities.

• More influence than in a pure market economy.

Impact on supply and demand:

• Higher wages → increased costs → higher prices.

• Strikes can disrupt supply chains.

• Negotiated benefits may shift worker behavior (e.g., increase in skilled labor demand).

In a market economy, employers may resist unions. In a mixed economy, governments may recognize unions and protect worker rights.

In this activity you will experience both perspectives (employees vs. employers) in a negotiating situation

Divide class into groups of 3; Workers (2 - employees and 1 - employers)

Scenario:

You work in a textile factory. Workers are unhappy with:

• Long hours (12-hour shifts)

• Low pay

• Unsafe conditions

Task:

Instructions:

Each group discusses their position:

• Workers prepare a list of demands

• Employers prepare counteroffers and concerns

Hold a class debate/simulation:

• Workers present demands

• Employers respond

• Attempt to negotiate a fair contract

Reflect briefly as a class:

• Did you reach a deal?

• What compromises were made?

• How did each side feel?

How do unions affect the decisions of businesses?