Trade Unions

Trade Union - A trade union is a group or organization of workers who combine to make stronger their bargaining position with the employer (management). Trade unions were born out of workers grievances and frustration with the ways in which certain work activities were organized and carried out by management. As a result workers sought help from an independent body that could speak to management on their behalf. Trade unions therefore play an advocacy role in the lives of workers.

Purpose of a Trade Union

The purpose of a trade union is to represent the workers (members) interest. The union is a mediatory body which helps to settle disputes between workers and management. A trade union should: Educate the workers about their rights and responsibilities Work towards improving the lives of the workers by getting management to provide better working conditions, offer reasonable salaries and offer good fringe benefit (additional benefits other than regular pay) among others. Play its advocacy role fairly so that the workers interest are not jeopardized

Industrial Dispute - This is an issue of conflict or disagreement between employees, trade unions and management which can be manifested in a number of ways referred to as an industrial action Industrial Actions The steps that employers or employees may take to enforce their demands or to press addressing of their grievances. In the event of an industrial action the employers action may take any of the following forms: Suspension or sacking of workers Lock out Negotiation Overtime bans or withdrawal of overtime In the event of an industrial action the employees action may take any of the following forms: Sit in or protest Sick out Go slow Negotiation Strike

Conflict between Workers and Management

Factors that may cause conflict or industrial dispute between workers and management may be summarized as follows: 1. Rate of pay or reasonable compensation for services rendered 2. Working conditions 3. Job security 4. Fringe benefit 5. Recognition of workers for their contribution to the organization 6. The nature of the work itself and the ability of the workers to cope 7. Unfair practices both by workers and management 8. Pension schemes

History of the Trade Union Movement in the Bahamas

Prior to 1921, the Bahamas was experiencing economic difficulty. However, during 1921 the tourist and construction industries began to develop and therefore brought greater economic success. It was during this time that the first Bahamian trade union was formed. It was called the Working Mans Union. According to its President Fred Tinker, it was formed to help in the improvement of ones knowledge in a craft and to classify labour according to trades and skills. In 1926, Citizens Union was formed. The purpose of its formation was to foster economic independence among the masses. This was to be accomplished through education and learning to think clearly, independently and constructively. In 1935 the Associated Bahamas Car Owners and Taxi Cab Drivers Union was formed to protest against competition from foreigners. Another union called the Labour Association was also formed during this time to protest the labour conditions in the Bahamas especially with regards to minimum wage. During the 1930s The Bahamas Labour Union was formed. During 1942 a meeting was held to discuss wages being paid to workers at Windsor Field (the old airport location). Since people of all trades attended the meeting, The Bahamas Federation of Labour was formed to accommodate all branches of trade. A riot called the Burma Road Riot later followed these proceedings which resulted in the imprisonment of several labourers for destroying property. This riot also resulted in bills being put in place for the proper procedures for the organization of trade unions.

In 1958 there was a considerable mark made by a trade union in The Bahamas. This was The Bahamas Taxi Cab Union. This union went on strike because hotel operators had made an agreement with a limited group of tour companies (who operated limousines and tour buses). The agreement meant loss of jobs for the taxicab workers. As a result, on November 2nd 1958, they blocked all routes in and out of the new Nassau International Airport for over twenty four hours, therefore causing air traffic to stop. The next day it was decided that the union would settle the dispute through negotiation.

The Bahamas Taxi Cab Union and the owners of the tour companies were unable to come to an agreement. Therefore, they ceased working and other unions did the same in support of The Bahamas Taxi Cab Union. This caused an economic strain in certain areas. This strike is known as the General Strike. Sir Randol Fawkes, often referred to as the Father of Trade Unions kept the people together to fight to the very end. He was a driving force in ensuring that employers meet the demands of workers and their unions. Eventually, the strike ended after seventeen days after The Bahamas Taxi Cab Union and the tour companies signed a temporary agreement. The workers came out victorious. As a result of this, more legislation was passed to assist in the proper operation and procedure for trade unions, for instance, the establishment of a labour department and the development of procedures for collective bargaining. Sir Randol Fawkes

At present there appears to be a trade union for almost every sector in The Bahamian Economy. Trade unions are very active and are perhaps the most vibrant of the countrys civil society. There have been well publicized disagreements between trade unions and the government or employers. The Commonwealth of the Bahamas Trade Union Congress and the National Congress of Trade Unions are the trade union centres in the country.

Trading Procedures
Documents in Trade
Business Document: A business document is a form that provides details of a transaction and evidence that the transaction has taken place.

Note: Documents are important in commerce because they provide written record of a transaction and they also form the basis for recording entries in the accounting records Features of Documents Although every business document has its own special function, all documents must have the following features: Date of issue Nature of transaction Parties to transaction Amount involve Terms and conditions of the transaction Reference number (not possible in all cases)

Documents in Home Trade

Letter of enquiry It is sent by the buyer to the seller to find out about goods required such as their availability, their prices and terms of payment. It informs the seller of goods required such as the quantity, the time and terms of delivery.

Note: The buyer may write letters of enquiry to several suppliers to request quotations so as to compare prices and terms of payment. Quotations This is a document that is sent by the seller to the buyer to inform the buyer of goods requested while given all the relevant information such as types of goods, their brands, their respective prices and terms of delivery and payment.

Catalogue and price list Sometimes instead of sending a quotation, the seller may send a catalogue containing detailed and classified information of the various types of goods offered for sale. The goods which are either described or illustrated in the catalogue have a reference number for placing orders. Prices are not quoted in catalogue as they may fluctuate often. Instead a separate price list is sent together with the catalogue. Order It is sent by the buyer to the seller to place an order for goods. It states the type, brand, quality and price of the goods as given in the quotation as well as the terms of delivery, the terms of payment and the expected delivery date.

Note: Sometimes the seller may supply the buyers with order forms for filling in the details of the goods required. Invoice It is sent by the seller to the buyer to notify the buyer of the amount due on the goods supplied, stating also the type, quantity, price and terms of payment. It is a bill used for goods sold on credit. (Goods sold for cash need not have invoice. They are billed with cash receipts instead). It is used to write up the Sales Journal (in the case of a sales invoice) or the purchases Journal (in the case of a purchase invoice).

Advice note It is sent by the seller to the buyer to inform the buyer that the goods have been dispatched. It inform the buyer of the quantity and type of goods (minus its prices) date and means of dispatch.

Note: It helps the receiving firm to make arrangements for goods that are due to arrive. Delivery note It is sent by the seller to the buyer to inform the buyer of the goods delivered, stating the quantity and type of goods delivered and quoting the order number if any. It usually arrives together with the goods so that the buyer can check the goods delivered.

Note: A copy is usually handed back to the one who has delivered the goods as proof of delivery.

Credit note It is made out to the buyer when: 1. The goods sold have been overcharged in the invoice 2. The buyer returns goods due to damaged, wrong type etc. It inform the buyer that his account is credited (the amount owed is reduced)

Note: Credit note is not an invoice and to distinguish it from an invoice it is normally printed in red. Statement of account It is sent by the seller to the buyer at the end of every month. It summarizes the monthly transactions between the buyer and the seller. It shows the amount of goods bought, the return made, the payments and cash discount if any all of which can be checked by the buyer with the invoices credit and debit notes and the receipts received to date. It serves as a reminder to the buyer to pay up his debt (the amount the buyer owes). It enables the buyer to check his books of account and notify the seller if there is any error.

Receipt It is a proof of money received issued by the seller to the buyer when the buyer makes his payment.

Note: When payment is made by cheque it is not necessary to issue a receipt since the cheque serves as proof of payment.

Differences between Cash Discount and Trade Discount

Cash Discount This is a deduction off the invoice price of goods purchased on credit. This is given to encourage prompt payment. The rate of cash discount depends on the period of credit allowed. The buyer forfeits the discount if he does not pay within the given period. Trade Discount This is a deduction off the list price of goods purchased. This is given to encourage bulk purchases. The rate of trade discount depends on the quantity purchased. Buyer is entitled to the discount even if he fails to pay within the given period.