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
A firm producing hockey sticks has a production function given by X = 2 KL In the short-run, the firm's amount of capital equipment is fixed at K = 1000. The rental rate fo

what are the limitation of managerial economics and what is the solution of it?

Q. Explain the Efficiency wage model? Efficiency wage models such as Shapiro and Stiglitz (1984) suggest wage rents as an addition to monitoring, because this gives employees a

Problem 1: You are the manager of a reputed five star hotel in Mauritius and you have been asked by the director of the hotel to advise on possible pricing strategies to increa

Opportunity cost is cost of a different that must be forgone in order to pursue a definite action. Put another way, the advantages you could have received by taking an alternative


Tastes of the buyer must not alter Any alteration which takes place in the taste of consumers will in all probability thwart the working of the law of demand. It frequently hap

In 2006, a hospital with 130 beds had 8,795 admissions. The average length of stay?for every patient was 4.7 days. Assuming full capacity is 100 percent, detremine the occupancy ra

What is Demand theory Demand theory demonstrates the relationship between demand for services andgoods. Demand theory is the building block of demand curve- a curve which estab

1. Prof. Marshall 'The more nearly perfect a market is, the stronger is the tendency for same price to be paid for same thing at the same time in all parts of the market". 2. Pr