The Role of Government, Employers and Trade Unions

Subject: Politics & Government
Pages: 2
Words: 363
Reading time:
2 min

The labour market has a long history of development, which has led to the emergence of various participants. Since the labour market unfolded from feudal to capitalist relations, the latter implied the interaction of influential capitalist owners and industrial workforce. Since working conditions in factories did not meet sanitary and safety standards, workers united in unions that demanded the protection of their rights. Political organizations such as the Labour Party in the UK are another example of political alliances. Such organizations had influence, and many of their requirements were eventually met since many countries adopted legislation to provide minimum wages, poverty relief, unemployment benefits, pensions, and safe working conditions.

Today, trade unions are sustainable organizations and important actors in economic and political life. At the same time, the influence of trade unions on labour relations is more significant than the impact of society and politics. However, small and medium-sized enterprises continue to set low wage standards, despite disapproval from trade unions, which seek to resolve the issue through centralized negotiations.

Another characteristic feature is that labour services are often largely dependent on the power the employer has over the worker. Scientists note that when the level of unemployment is high, workers may find themselves in a weak position and more labour services can be extracted from them. Moreover, the number of labour services that the employer gets from workers can be measured not only by hours worked but also by the efficiency of labour services provided. In this regard, it is vital to draw up of the employment contract, where the worker’s wage and conditions of employment are indicated.

It is noteworthy that young people and low skilled workers are the most vulnerable category, who faces the highest unemployment rates. The young people of 15-19 years old show higher unemployment rates than 20-24 year-olds, who also have higher rates than 25-64 year-olds. Besides, on tighter labour markets, younger adults may purposefully delay their participation in it by prolonging their education. Another widespread tendency is when people who were unemployed for a long time give up looking for a satisfying job.