The Impact of Trade Unions on Productivity1.0 Introduction Trade unions are organizations that represent people in the workplace. Their aim is to protect and improve people's pay and working conditions. They also campaign for laws and policies that will benefit workers. Unions exist because an individual worker has very little power to influence decisions that are made about his or her job. By joining together with other workers, there is a greater chance of having a say and influence. However, over the past twenty years there has been much discussion about the impact of unions on productivity. Unions have been defined by two sides, as highlighted by Freeman and Medoff in What Do Unions Do? Since the basis of much of the literature on unions derives from this, I will discuss it in detail in the following paragraphs. , but also the relationships between employers and unions and between them. Trade union theory, practice and institutions traditionally focus more on the collective aspect of relationships. This is evident from the central place occupied by labor law, freedom of association, collective bargaining, the right to strike, etc. It was Freeman and Medoff's study that first created the concept of the two faces of unionism. The first face, proposed mainly by neoclassical economists, is that of monopoly. Monopoly Face: This side of unions assumes that most unions have the power to raise wages above competitive levels. This is argued to have detrimental economic effects. Freeman and Medoff divide the definition of these faces into three sections. The first section concerns economic efficiency. In this sense, according to the monopoly principle, union work rules can decrease productivity. The next section deals with income distribution. Monopoly here can increase income inequality by raising the wages of highly skilled workers and can also create horizontal inequalities by creating differentials between comparable workers. Finally, regarding the social nature of the organization, the monopolistic face of the union generates corrupt and undemocratic elements and discriminates in rationing positions. The collective voice/institutional face: on the other hand it is very different. According to this, unions have positive effects on productivity, reducing attrition rates, inducing managers to change production methods and adopt more efficient policies and thus improving worker morale..