The following article will guide you about the extent to which trade unions are capable of increasing wages for the workers of a particular industry. Trade (labour) unions are organisations of employees established to bargain with employers concerning wages, houses and conditions of employment. Unions are democratic institution whose central purpose is improving the economic conditions of their members. Unions [...]
Trade unions are often seen as a monopolistic element in the market which distributes the efficient allocation of resources. Trade union do this by restricting the supply of labour. This is why the Nobel Laureate Friedrich A. Von Hayek comments: "Powers of unions have become the biggest obstacle to raising the living standards of the working class. They are the [...]
Trade Union Powers to Secure Increases in Wage and Employment and to Eliminate Monopsonistic Exploitation of Labour: The goals that the trade unions generally pursue are maximisation of employment, maximisation of total wage bill, and maximisation of total gains to the union as a whole. The trade unions may also try to achieve an increase in the wage rate accompanied [...]