Syllabus: Cambridge - IGCSE Economics
Module: 3.4 Trade Unions
Lesson: 3.4.3 the Advantages and Disadvantages of Trade Union Activity

Introduction

This article supports the Cambridge IGCSE Economics syllabus, specifically Unit 3.4.3: The Advantages and Disadvantages of Trade Union Activity. It explores the role of trade unions in modern economies, their impact on employers, employees and governments, and how to support students to evaluate these impacts critically.

For teachers, careers leads, and SLT, this topic is a valuable opportunity to link economic theory with careers education and commercial awareness. It directly supports Gatsby Benchmark 4 by linking curriculum to career realities, and aligns with the Enterprise Skills platform’s focus on real-world application.

Key Concepts

The Cambridge IGCSE syllabus requires students to understand:

• What trade unions are: Organisations formed to represent the interests of workers.

• The potential advantages for workers:

  • Improved wages through collective bargaining

  • Better working conditions and job security

  • Representation in disputes with employers

• The potential advantages for employers:

  • Structured communication with workforce

  • Reduced staff turnover through improved morale

  • Higher productivity in cases of constructive engagement

• Disadvantages for employers:

  • Increased wage costs

  • Potential for strikes and disruptions

  • Resistance to organisational change

• Disadvantages for workers:

  • Union fees

  • Possible conflict with employer

  • Risk of job losses if union demands are excessive

Students should also be able to distinguish between the effects of trade union activity in competitive vs monopolistic labour markets, and understand the economic consequences of industrial action.

Real-World Relevance

Recent headlines have brought trade unions back to the forefront of economic debate:

• UK Rail Strikes (2022–2023): Union-led strikes across the rail network were driven by disputes over pay and working conditions. These strikes highlighted the economic impact of industrial action on both public services and private businesses.

• Amazon and Starbucks (US, ongoing): Workers in global corporations have increasingly turned to unionisation to negotiate wages and conditions, with varying success. This highlights tensions between labour rights and corporate control.

• Royal Mail Disputes: In the UK, the CWU (Communication Workers Union) has actively challenged pay freezes and restructuring plans, raising questions around modern working conditions in digital-era industries.

Case studies like these help students connect theoretical pros and cons to real economic outcomes — a core principle of commercial awareness education.

How It’s Assessed

In Cambridge IGCSE Economics exams, students may encounter this topic through:

• Short-answer questions: Define what a trade union is or state one advantage to workers.

• Data response questions: Analyse provided economic data and answer application questions.

• Structured/Extended writing questions: Evaluate a scenario where trade union activity has influenced a labour market.

Key command words include:

• Describe: Factual understanding (e.g., union structure)

• Explain: Link causes and effects (e.g., how bargaining can raise wages)

• Evaluate: Weigh pros and cons with reasoned judgment

Strong answers must show both economic understanding and real-world application. Encouraging students to link to recent examples (such as industrial action in essential services) boosts marks in extended responses.

Enterprise Skills Integration

Teaching trade unions provides a natural bridge to decision-making and problem-solving skills. Simulated negotiations, for example, challenge students to:

• Weigh competing interests (e.g., worker vs employer)

• Consider consequences of industrial action

• Evaluate compromise options

These are precisely the competencies assessed in Enterprise Skills’ live simulations and digital tools. In fact, many of the simulated workplace challenges explicitly reference negotiation, employee relations, and organisational strategy — key elements of workplace readiness.

By encouraging students to take roles (e.g. union rep, HR manager), teachers build commercial awareness through practical reasoning and persuasive communication.

Careers Links

This topic supports Gatsby Benchmarks 4, 5, and 6:

• Benchmark 4: Students learn how labour markets and employee rights influence careers across sectors

• Benchmark 5: Employer case studies (from Skills Hub Futures) bring this concept to life through video explainers and unionised workplace stories

• Benchmark 6: Simulated workplace negotiations in our platform mirror real HR experiences

Relevant career pathways include:

• Human Resources

• Employment Law

• Industrial Relations

• Public Policy and Union Leadership

• Operations Management

Trade unions are not just abstract institutions — they shape the work environment of millions. Careers in labour policy, HR, and employee relations require an in-depth understanding of these dynamics.

Teaching Notes

Tips for delivery:

• Use role-play scenarios: Assign students to act as union reps, employers, or government officials.

• Debrief recent headlines: Have students analyse the outcome of a recent strike.

• Apply to part-time jobs: Ask students to consider how unionisation might affect them if working in retail, hospitality or logistics.

Common pitfalls:

• Oversimplifying: Some students see unions as ‘good’ or ‘bad’. Emphasise the need for balanced evaluation.

• Lack of real-world examples: Encourage students to research current union activity for stronger evaluation.

Extension activities:

• Simulate a negotiation: Use Skills Hub tools to conduct structured employer-employee discussions.

• Bring in local union reps or HR professionals for Q&A sessions.

• Compare UK and US approaches to labour rights and union recognition.

By linking syllabus content to commercial literacy and workplace realities, this topic goes beyond economics — it prepares students for adult decision-making in professional contexts.