SBL - Specimen Exams 1 - ACCA

Trade unions represent employees in disputes and negotiations with employers. Strong trade unions are often seen as barriers to change because of objections to redundancies, re-assignment etc and can make employees key stakeholders in an organisation. What the question might be trying to say is either: If you are dissatisfied at work, you might join a trade union to speak up for your grievances. Or, more controversially: Employees have joined a trade union which then generates employee unrest. Without more context, I am not sure how trade-unions affect supplier bargaining power. It might be that suppliers have less flexibility to supply goods because a trade union has negotiated strong terms and conditions for their workers

Thank Sir. I understand now. I would like to provide more context from ACCA's explanation, they say as the employees could considered as suppliers, they could affect the bargaining powers of suppliers under Five Forces model.

OK. Their bargaining power of employees as suppliers would be stronger if they were organised to act together. They become on single, powerful supplier rather than lots of small, weak ones

@kengarrett said: Trade unions represent employees in disputes and negotiations with employers. Strong trade unions are often seen as barriers to change because of objections to redundancies, re-assignment etc and can make employees key stakeholders in an organisation. What the question might be trying to say is either: If you are dissatisfied at work, you might join a trade union to speak up for your grievances. Or, more controversially: Employees have joined a trade union which then generates employee unrest. Without more context, I am not sure how trade-unions affect supplier bargaining power. It might be that suppliers have less flexibility to supply goods because a trade union has negotiated strong terms and conditions for their workers

@kengarrett said: Trade unions represent employees in disputes and negotiations with employers. Strong trade unions are often seen as barriers to change because of objections to redundancies, re-assignment etc and can make employees key stakeholders in an organisation. What the question might be trying to say is either: If you are dissatisfied at work, you might join a trade union to speak up for your grievances. Or, more controversially: Employees have joined a trade union which then generates employee unrest. Without more context, I am not sure how trade-unions affect supplier bargaining power. It might be that suppliers have less flexibility to supply goods because a trade union has negotiated strong terms and conditions for their workers

Dear Sir, Thank you very much. I understand now. Regarding the bargaining power of supplier, the answer from ACCA is the employees should also be considered as suppliers.

Yes, they can be.