Question

Give three reasons why a government might seek to limit the power of a union.

Short answer

1. The union spotlights their individuals and the non-union individuals are in this manner totally disregarded by the general public.

2. The worker's guilds are too strong in aggregate expecting the advancement of their individuals that prompts higher wages.

3. Trade guilds work to improve their individuals; they need to accomplish objectives.

Step-by-step solution

Given Information

Labour union is an association that goes about as a middle person between individuals and the business that utilizes them. The primary reason for worker's organizations is to enable specialists to haggle for additional positive working circumstances and different advantages through aggregate bartering.

Explanation Part (1)

1.The union spotlights their individuals and the non-union individuals are hence totally disregarded by the general public, because of which an individual from the union procures more than the non-part. Subsequently, a colossal pay hole is made between the individuals and non-individuals from the union, which further prompts joblessness in the economy. Thus, the public authority should make a move to control the force of the unions.

Explanation Part (2)

2. The trade guilds are too strong in aggregate anticipating the improvement of their individuals that prompts higher wages. In this manner, the wages surpass the pace of inflation causing wage inflation in the economy. This can prompt further monetary results.

3. Trade guilds work to improve their individuals; they need to accomplish objectives, for example, fewer working hours for their individuals which leads to less efficiency. Hence, because of low efficiency, the total result decreases. This can influence the development of the economy.