A trade union in Country X successfully negotiates higher wages for its members in the steel industry. Which group is most likely to benefit from this actio...
Question 1 Report
A trade union in Country X successfully negotiates higher wages for its members in the steel industry. Which group is most likely to benefit from this action?
Answer Details
The correct answer is existing steel workers who are members of the union.
A trade union negotiates on behalf of its members to achieve better pay and working conditions. When the union successfully secures higher wages, the direct beneficiaries are the existing workers who are members of that union, as they receive the increased pay.
Consumers who buy steel products are likely to face higher prices, not benefits, because firms may pass on the higher labour costs. Unemployed workers seeking jobs in the industry may actually be disadvantaged because higher wages can reduce the quantity of labour demanded, making it harder to find employment. Owners of steel firms must pay the higher wages, which increases their costs and reduces their profits.
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