UK unemployment rate 78 Trade Unions The impact of union intervention on the labour market Wage Quantity of labour D W e W tu S tu S Q 1 Q e Effects of trade union representation wage bargaining ID: 432747
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Slide1
How healthy is UK economy?Slide2Slide3
UK unemployment rate:
7.8%Slide4Slide5
Trade Unions Slide6
The impact of union intervention on the
labour
marketSlide7
Wage
Quantity of labour
D
W
e
W
tu
S
tu
S
Q
1
Q
e
Effects of trade union representation wage bargaining
Q
3Slide8
Wage
Quantity of labour
D
W
e
W
tu
S
tu
S
Q
1
Q
e
Effects of trade union representation on supply
Unions may reduce the supply of labour by maintaining certain controls on the numbers of new recruits. This may be done by supporting the retention of a lengthy training period, as in the law or accountancy, or insisting on union membership before somebody can enter a job, for example, the acting profession
.
Trade union intervention can have the effect of separating the market into two; the unionised sector with high wages and good working conditions and the non-unionised sector with a higher supply of labour and worse pay and working conditions. This is known as the insider and outsider problem.
Slide9
The case for the minimum wageSlide10
Minimum wage
A law that is passed which means that no employer can pay an employee below the set rate
‘Living wage’ in the UK: This is calculated by the Centre for Research and Social Policy at
Loughborough
University. They have calculated an amount that the average person needs to stay out of poverty in the UK. It varies across the UK, in London as of November 2012 it stands at £8.55 and in the rest of the UK £7.45.
The minimum wage was introduced to the UK in 1998. Slide11
Minimum wage
Why are there 4 categories?
Why do you think that the minimum wage has dropped below the ‘living wage’? What might happen in the UK now if the minimum wage was increased to the level of the ‘living wage’?Slide12
Why have a minimum wage?
Which parts of the world are most equal?
Which parts of the world are most unequal?Slide13
Case Study: The minimum wage in Hong Kong
Describe life in Hong Kong and how it is changing
What reasons are given for introducing a minimum wage?
What reasons are given for not introducing a minimum wage? Slide14Slide15
Wage
Quantity of labour
D
W
e
W
min
S
tu
S
Q
1
Q
e
Can the minimum wage cause unemployment?
Q
3Slide16
The minimum wage
Arguments for
Arguments against