The role of trade unions in improving productivity

Trade unions can play a key role in supporting efforts to increase productivity through the mechanisms in which only they can contribute towards economic growth, namely collective bargaining and/or sectoral agreements as well as also by influencing policy direction towards higher value-added economic activities. Moreover, trade unions, by design, combine the power of individual workers through collective bargaining and collective action. In doing so, they shape labour market dynamics to help achieve the promises of a competitive market. 

Through negotiations, trade unions can help businesses operate more efficiently by bringing workers’ knowledge of how to do their jobs and preferences for various attributes of job quality to the foreground in structuring workplaces and production. In addition to supporting productivity by allowing workers to engage in decision making in workplaces, unions may also improve business outcomes by helping firms hold on to tenured workers who tend to be more productive. Unionised workers are less likely to express intent to leave their jobs. 

Collective bargaining can contribute to productivity by promoting a positive and supportive work environment, recognizing employee value, and encouraging collaboration and innovation.

The own-initiative opionion provides an opportunity to debate and recommend informed and evidenced-based conclusions and recommendations to support the argument that trade unions play a key role in productivity growth.

Practical information :

Composition of the Study Group   

Administrator in charge: Georgios MELEAS / Assistant: Elzbieta CIOLEK 

Contact: E-mail