Syllabus: Cambridge - IGCSE Economics
Module: 3.4 Trade Unions
Lesson: 3.4.1 Definition of a Trade Union

Introduction

This article supports teachers and careers leaders delivering the Cambridge IGCSE Economics 0455/0987 syllabus, focusing on topic 3.4.1 – Definition of a Trade Union. As part of the “Labour Market” section, it introduces students to the role of collective organisations in labour relations.

Understanding trade unions is critical to both economic theory and real-world labour markets. It also helps deliver Gatsby Benchmark 4 by linking curriculum content to future workplace dynamics, and supports whole-school workplace readiness goals.

Key Concepts

According to the Cambridge IGCSE syllabus, students should be able to:

• Define a trade union as a group of workers who join together to protect their interests.

• Understand the objectives of trade unions, such as negotiating better pay, improving working conditions, and ensuring job security.

• Recognise different types of trade unions, including general unions, industrial unions, and craft unions.

• Identify methods used by trade unions, such as collective bargaining, industrial action, and lobbying.

These foundational ideas provide a stepping stone for evaluating labour markets, wage determination, and the role of government intervention.

Real-World Relevance

Trade unions remain highly relevant in today’s global economy:

• In 2023, the UK education sector saw coordinated strike action led by the NEU (National Education Union), advocating for teacher pay increases amid inflationary pressures. This highlighted the role of collective bargaining in action.

• In the US, automotive workers represented by the UAW negotiated major pay rises with major carmakers, showcasing the power of coordinated worker voice.

• Amazon and Starbucks employees have attempted unionisation in response to working conditions and job security concerns, showing that trade unions are not just a legacy concept, but an evolving force in new industries.

Using these examples in class reinforces commercial awareness and helps students see how economic theory applies to actual labour markets.

How It’s Assessed

In Cambridge IGCSE Economics, this topic is typically assessed through:

• Short definition questions (e.g. “What is a trade union?”)

• Data response questions with context-based application (e.g. using a scenario involving industrial action)

• Structured questions requiring explanation of union objectives or effects on wages

• Evaluation-style extended responses (e.g. “Discuss the impact of trade unions on workers and employers”)

Command words such as define, explain, analyse, and discuss are common. Teachers should guide students to understand what each command demands — for example, that discuss requires considering both benefits and drawbacks.

Enterprise Skills Integration

Trade union dynamics offer a natural link to decision-making and problem-solving:

• Students can role-play negotiations between employers and unions to develop empathy, communication, and strategic thinking.

• They evaluate outcomes based on stakeholder needs — a core component of commercial literacy.

• Incorporating employer-validated simulations from Skills Hub Futures can extend learning into practical application, building career readiness and workplace confidence.

This is active learning in action: contextualised, reflective, and evidence-backed.

Careers Links

This topic aligns directly with Gatsby Benchmarks 4, 5 and 6:

• Benchmark 4: It links economics to employment rights, industrial relations, and HR management.

• Benchmark 5: Invite a union rep or HR officer to speak to the class about real-life bargaining processes.

• Benchmark 6: Use simulations or virtual workplace scenarios showing employer-employee negotiations.

Career pathways linked to this topic include:

• Human Resources and Industrial Relations

• Employment Law and Legal Advisory Roles

• Public Sector and Civil Service

• Union Representation and Labour Advocacy

These links help students understand how curriculum learning translates into real-world job functions.

Teaching Notes

Common Pitfalls to Avoid:

• Oversimplifying unions as purely adversarial — encourage balanced debate on both their benefits and drawbacks.

• Assuming all students understand current labour news — scaffold with recent examples to boost engagement.

• Failing to connect the topic to student experiences — part-time jobs or family employment stories can enhance relevance.

Suggested Activities:

• Mini case studies on recent strikes or negotiations

• Debates: “Are trade unions still necessary in the modern workplace?”

• Group research projects comparing unionisation rates across sectors or countries

• Use the Enterprise Skills “Stakeholder Mapping” tool to visualise the impact of union decisions on different groups

Extension Idea: Challenge students to design a new trade union for gig economy workers and present their constitution.