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

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