Marx theory emphasized that unionism came about as a reason to promote socioeconomic, political, ideological and social developments (Annunziato, 2009). This theory is built on Adam Smith’s theory of labour value and the focus of this theory is to eliminate competition among labour though, he believed the struggle was to overcome capitalism.
Webb believes that this theory is the exact extension of democracy, though it is observed from an industrial perspective. He argued that collective bargaining is the only way to strengthen the power of labour. He like Marx also thinks that unionism is a struggle which leads to democratic socialism. Webb stated that a “trade union is a continuous association of wage earners …show more content…
Morin (2017) found that trade unions negotiate better wages and working conditions for their members. Nonetheless, Han and Castater (2016) argued that the skill composition of trade unions affect the union’s ability to bargain for equal wages although, trade unions decrease the wage inequality in the various organizations. This suggests that the relationship between trade union and wage inequality is mediated by the type of members unionized. They further emphasized that the bargaining power of trade unions is reduced when there exists a high risk of unemployment in any …show more content…
These challenges include globalized economic competition (Leisink, Leemput and Vilrokx, 1996); lack of monitoring of outcomes by trade unions (Lee and Cassell, 2011); the threat of internet in terms of maintaining its identity and its role (Lucio and Walker, 2005); the structure of industry, structure of labour force, attitude of employers, objectives of employers, technology, belief of government, extent of competition, nature of product market and internal trade and investment (Leat, 2007); relationship between government and trade unions and strike action and harassment (Chelghoum, Takeda, Wilczek and Hamberg, 2016); political developments and blockages (Dufresne,