Effectiveness of trade unions in developing countries, Managerial Economics

Effectiveness of Trade Unions in Developing Countries

Trade Unions in developing countries tend to be less effective in their wage negotiations with employers than their counterparts in developed countries.  This can be attributed to the following factors:

i.      Incomes in developing countries are lower than in developed countries.  Consequently, the contributions of workers to trade unions are less and the trade unions are therefore in financially weaker position to support the members while on strike.

ii.     As incomes in developing countries are lower, so are savings, and hence workers cannot support themselves for long periods while on strike.

iii.    In developing countries, there are no unemployment state benefits on which workers can depend if they are sacked for trade union activities.

iv.    There is more Government interference in industrial disputes in developing countries than in developed countries.  This is partly because the developing countries the political structures are not strong and governments fear that too much trade union agitation may have negative political effects.

v.     Labour in developing countries is mostly unskilled and semi-skilled labour and is in abundant supply.  Hence striking workers can easily be replaced.  For this reason trade unions in developing countries are less able to persuade their members to go on strike for long periods than their counterparts in developed countries.

Posted Date: 11/30/2012 2:26:08 AM | Location : United States







Related Discussions:- Effectiveness of trade unions in developing countries, Assignment Help, Ask Question on Effectiveness of trade unions in developing countries, Get Answer, Expert's Help, Effectiveness of trade unions in developing countries Discussions

Write discussion on Effectiveness of trade unions in developing countries
Your posts are moderated
Related Questions
What do you mean by the fiscal policy? What are the instruments of fiscal policy? Briefly comment on India's fiscal policy.

Write on one theory of profit. Profit as rent of ability: one of the most widely known theories of profit was propounded by F.A. Walker. According to him profit is the rent of is t

Indifference curves In order to explain indifference curves, we will again make the simplifying assumption that the consumer buys two goods, x and y. The table below gives

Peanut butter monopolist Calvé supplies peanut butter to Albert Heijn in an isolated village. The supermarket is a monopolist in the village. Demand for peanut butter is given by:

Consider a magnetic disk consisting of 16 heads and 400 cylinders. This disk is divided into four 100-cylinder zones with the cylinders in different zones containing 160, 200, 240,

Frank H. Knight treated profit as a residual return to uncertainly profit. Obviously knight made a distinction between risk and uncertainly he divided risk into calculable and non-

The Social Cost of Unemployment i.      For the individual, there is the demoralizing effect which can be devastating particularly when they are old.  This is because as some

For all regular goods, income elasticity is positive though the degree of elasticity fluctuates as per the nature of commodities. Consumer goods are generally categorised under thr

Q. Total cost of Factor Combinations? Here we try to find total cost of every factor combination and choose the one that has the least cost. Cost of every factor combination is

Determine the uses of Managerial economics Managerial economics studies the application of the principles, methods and techniques of economics to managerial problems of busine