Trade unions and collective bargaining

Trade union movement is a part of modern society; it has participated in its forming and still has considerable influence. Trade unions have gone through difficult development and their membership has been diminishing lately, what can be explained especially by demographical influences, restructuralization of industry and growing tendency of population to solve important problems by themselves. Unions are respected partner in the process of collective bargaining and how the findings from the union contracts and the information sent by the trade unionists show, they are very powerful players in many areas. Although the information about modern bargaining models hasn't been recognized yet, trade unionists act pragmatically, target especially the question of wages and other benefits and rely upon the bargaining abilities of their leaders. Trade unions offer a great level of protection to all their members and other employees, but their activities have significant negative effects. They monopolize the work supply and hence cause rigidity of wages and structural unemployment, they support privileged groups of workers and these compelled benefits then reflect in the prices of products and services. Its activities thus inhibit efficient allocation of workforce and induce significant social consequences. Faced with international competition, Europe has to make an important decision about the level of sociability in the market system, what can be in near future influenced by deeper understanding of the necessity of changes. To that can contribute information from economic background and in longer horizon probably also the new generation with looser approach to solidarity.