Essay On Trade Unions

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Trade unions play a huge role in the South African economy. They respond dynamically to fiscal policies by government. Trade unions debate that their proposals on the budget will increase economic growth and improve job creation. This essay will analyze whether trade union alternatives will support or improve economic growth, the way the national budget proposes. A short history of trade unions in South Africa will be mentioned. The role of trade unions are important to understand in terms of the economic world.
History of trade unions
Trade unions play an important role in the economy. In terms of section 23 of the Constitution, the legislature states that every worker has a right to join a trade union. Trade unions date all the way back to the 1880s. These trade unions were however only for white citizens. During the unsettling years between 1948-1991, trade unions became more significant in the South African economy. Currently, the main trade unions in South Africa are: COSATU (Congress of South African Trade Unions), FEDUSA (Federation of Unions in South Africa) and NACTU (National Council of Trade Unions).
The definition of a trade union is as follows: “an organization whose membership consists of workers and union leaders united to protect and promote their common interests.” The main purposes of trade unions are to: negotiate wages and working conditions, regulate relations between workers and employers, take collective action to enforce the terms of collective bargaining and help settle grievances.
Role of trade unions: sustainable growth and development
Training and skills development
Dual action is required between trade unions and the government to promote fast economic growth and increasing employment. In order to ach...

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...llection surpasses government’s estimates by R11.4 billion.
NEHAWU is however disappointed that the national budget is inflexible.
NEHAWU is content that there is now a bigger budget apportioned for HIV/AIDS programmes. This will definitely be to the benefit of the community. NEHAWU has noted that R11.2 billion is set aside for piloting general practitioners, this however seems like this funding swings away from the public sector, instead of towards the public sector.
Skills development
Recently, the focus in the workplace has moved towards skills development. For example: the UK Commission for Employment and Skills came to the conclusion that over 80% of the United Kingdom’s 2020 workforce is already employed. Taking this shift into account, employers should take part in skills development activities to invest for training their employees.

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