The various factors that affect the ability of trade unions to influence wages and levels of employment in different labour markets
Trade unions — groups that negotiate pay on behalf of workers — are more powerful in some situations than others. Several factors decide how much influence a union can actually have over wages and jobs.
Real World
The RMT union's ability to bring Network Rail and train operators to the negotiating table in 2022–23 stemmed from high membership density and the fact that striking workers are almost impossible to replace quickly.
Exam Focus
Structure answers around membership density, elasticity of labour demand, and employer profitability — cover at least three factors for high-mark responses.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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