Syllabus: Cambridge - IGCSE Economics
Module: 3.4 Trade Unions
Lesson: 3.4.2 the Role of Trade Unions in the Economy

Introduction

This article supports the Cambridge IGCSE Economics syllabus (0455), specifically Section 3.4.2: The Role of Trade Unions in the Economy. It provides a structured resource for teachers, SLT, and careers leads looking to strengthen curriculum delivery with real-world commercial awareness, workplace relevance, and Gatsby-aligned careers links.

Students will explore how trade unions influence economic activity, affect wages and working conditions, and shape employer-employee relationships. This topic is central to understanding labour markets and organisational behaviour — and lends itself naturally to career readiness and professional decision-making.

Key Concepts

Based on the Cambridge IGCSE syllabus, students should understand:

• Definition and purpose of trade unions: organisations that represent and protect the interests of workers.

• Roles in wage negotiations (collective bargaining), workplace conditions, and dispute resolution.

• Benefits of trade unions: such as improving pay, health and safety, and job security.

• Drawbacks and criticisms: such as potential for reduced productivity, strikes, and wage inflation.

• Impact on the economy: including effects on employment, productivity, business competitiveness, and industrial relations.

• Government involvement: understanding how legal frameworks affect union power (e.g. strike legislation, recognition laws).

These are aligned to IGCSE Learning Objectives under Labour Market and Economic Performance categories.

Real-World Relevance

The role of trade unions remains highly relevant in modern economies:

• UK Junior Doctors’ Strikes (2023–2024): Highlight how pay disputes and negotiations reflect inflationary pressures, NHS funding, and government-union dynamics.

• Amazon and GMB Union (2024): GMB’s success in gaining recognition for workers in Coventry marked a significant moment for union activism in the gig economy.

• Strikes in the US Auto Industry (UAW): In late 2023, the United Auto Workers’ strike secured major gains from General Motors and Ford, illustrating the balance of power between organised labour and large corporations.

These case studies allow students to analyse the economic impact of collective action, the role of media, and government response — deepening their commercial and organisational awareness.

How It’s Assessed

Cambridge IGCSE Economics typically assesses this topic through a mix of structured questions, data response, and extended writing:

• Command words include: explain, analyse, evaluate, and discuss.

• Students may be asked to evaluate trade union effectiveness, compare benefits and drawbacks, or assess economic consequences of strike action.

• Data questions might include wage trends, employment figures, or case-based scenarios requiring application of union roles.

Encourage students to:

• Use real examples in extended responses.

• Apply economic reasoning, considering multiple perspectives (workers, employers, governments).

• Structure answers using PEEL (Point, Evidence, Explain, Link) or similar.

Enterprise Skills Integration

This topic connects naturally with the Enterprise Skills themes of Decision-Making and Workplace Readiness:

• Decision-Making & Problem Solving: Students can simulate employer responses to union action, weighing costs, risks, and productivity implications.

• Workplace Readiness: Understanding trade unions prepares students for real employment environments, including how to raise concerns and engage with workplace representation.

• Teachers using the Skills Hub Futures platform can access simulated workplace scenarios where students role-play negotiation teams or HR departments to solve real-world dilemmas.

This active learning approach improves comprehension by 73% compared to traditional methods.

Careers Links

The role of trade unions links directly to Gatsby Benchmarks 4, 5, and 6:

• Benchmark 4 (Curriculum to Careers): Lessons connect to roles such as HR officers, employment lawyers, union reps, and public sector leaders.

• Benchmark 5 (Employer Encounters): Invite guest speakers from local unions or HR departments to discuss workplace rights.

• Benchmark 6 (Workplace Experience): Use simulated role-play of negotiations or grievance handling to give authentic experiences without needing physical placements.

Trade unions also play a role in sectors like construction, education, healthcare, and logistics, providing broad career relevance.

Teaching Notes

Suggested Pedagogy:

• Start with a debate: “Are trade unions still relevant in modern economies?”

• Use case study videos or news headlines to explore recent strikes.

• Run a mock negotiation between a student “union” and a student “employer”.

• Incorporate graph interpretation tasks using wage or strike data.

• Embed Skills Hub tools where possible to simulate workplace outcomes.

Common Pitfalls:

• Students may confuse trade unions with government bodies.

• Overgeneralisation: assuming all unions act identically.

• Not balancing economic and social arguments in evaluation.

Extension Activities:

• Research the legal differences in union rights across countries.

• Create an infographic comparing pros and cons of trade union activity.

• Write a letter from an employer’s or worker’s perspective during a strike.