What role do trade unions play in the labour market?

Trade unions play a vital role in the labour market primarily by negotiating wages and working conditions on behalf of workers. These organizations represent the collective interests of their members, allowing individual workers to have greater influence in discussions with employers. This negotiation process may include aspects such as salary increments, benefits, job security, hours of work, and occupational health and safety standards. By advocating for fair treatment and better conditions, trade unions help to empower workers and ensure that their voices are heard in the workplace.

In contrast, while competition among workers can exist, trade unions typically aim to create solidarity rather than competition. They do not engage in the hiring of workers for employers; that function is usually carried out by recruitment agencies or the employers themselves. Additionally, setting minimum wage regulations is typically the responsibility of government bodies rather than trade unions, even though unions may lobby for such regulations to protect workers' rights and improve their wages.