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
Thinking about modifications in the model again: Go back to the original model again, but add a marginal propensity to invest, this is, suppose  that I = f ( i and Y). The MPI is d

Kinds of Bargaining arrangements Basically there are three kinds of bargaining arrangements, namely: Open Shop: In an open shop a union represents its members, but doe

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-

FACTORS RESPONSIBLE FOR WAGE DIFFERENTIALS BETWEEN OCCUPATIONS The major cause is demand and supply for the particular labour concerned, but other causes could be: i.

Significance of managerial economics Industrial and Business enterprises aim at earning maximum proceeds. In order to attain this objective, a managerial executive has to take

The aim of monopolist is to maximise profit therefore; he would produce that level of output and charge that price which gives him maximum profits. He would be in equilibrium at th

Question 1: "Anyone who is willing to learn the language of economics and take the time to practice making decisions can learn to be an effective manager." Explain how. Qu

The variance of the OLS estimator is VAR( ^B)=σ 2 /ns 2 x , where   s 2 x =£x 2 /x You're hired to estimate   and you're going to be paid according to the accuracy of your esti

What are the important external forces Management has to identify all significant factors which influence a firm. These factors can largely be divided into two categories. Mana

In a one-shot game, if you advertise and your rival advertises, you will each earn RM5 million in profits.  If neither of you advertises, your rival will make RM4 million and you w