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IGCSE · Cambridge (CIE) · 0986

Explain the role of trade unions

Describe a trade union and explain how membership may support employees.

Section 2 · People in business

People in business · Cambridge IGCSE (9–1) Business Studies 0986 · 2.2
Exam scope and assessment notes

Cambridge IGCSE (9–1) Business Studies 0986, 2026 syllabus, Version 2. This is the separate 9–1 legacy route; 0774 replaces it for first assessment June 2027. Candidates are not assessed on constructing income statements or statements of financial position, nor on price-elasticity or exchange-rate calculations. Simple cash-flow forecast construction is assessed. Written practice is self-checked, not an official Cambridge grade; timed-paper evidence and human subject-teacher review remain outstanding.

Before you begin

  • No previous business study is assumed. Read each scenario for the people affected, the business objective and any limits on time, cost or information.

Work on paper. Try each question before revealing help, and explain why your method works.

Quick readiness check

What is a trade union's general role?

What you will learn

  • Define a trade union
  • Explain potential employee benefits
  • Apply representation to a workplace issue

Employees can act collectively

A trade union is an organisation that represents employees' interests. It may communicate members' concerns to an employer and seek to negotiate about employment matters.

Collective representation can give employees a shared voice, especially when an individual has limited bargaining power. The details of union recognition and legal rights depend on the country and workplace.

Consider both support and context

Union membership may provide advice, representation or support in discussions about pay and working conditions. It can help employees raise shared concerns through an organised process.

Employers may need time to consult or negotiate, and disagreement can take time to resolve. Avoid implying every union has identical powers or that membership guarantees a particular outcome.

Pause and explain

What is one potential benefit of union membership?

Put the idea to work

Worked example

Several employees are concerned about inconsistent shift schedules. How could a trade union help them raise the issue?

Show the worked solution
  1. The union can gather concerns from members.
  2. Representatives can present the issue collectively.
  3. A discussion may seek a clear scheduling arrangement.

Answer A union representative could gather members' examples and raise them with management, seeking a clearer and more consistent scheduling process. The outcome depends on the workplace arrangements and local rules.

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Choose Easy, Normal or Difficult. Save your answers and open worked review after finishing.

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From guided practice to a new situation

Write your answer and reasoning first. Use a hint only if you are stuck. The model solution is for self-checking; your written work is not automatically marked.

1 · Guided

Warehouse employees report inconsistent break schedules. Explain how a union could help and one limit to its role.

Give me a hint

Consider collective representation and the employer's decision-making context.

Compare my reasoning
  1. The union can gather evidence from members.
  2. A representative can raise a common concern with management.
  3. The union cannot guarantee management will accept a specific proposal.

A union could gather examples and represent employees in a discussion with management about a consistent break schedule. It can support the process but cannot guarantee a particular outcome; workplace rules and local law apply.

Look for these in your work

  • Representation described
  • Collective issue stated
  • Limit included
2 · Independent

An employee has a concern about working conditions but fears raising it alone. Give one possible union benefit and one step the employee should check.

Give me a hint

Membership may provide support, but arrangements vary.

Compare my reasoning
  1. A union representative may provide advice or representation.
  2. Check membership, workplace procedures and how to raise the concern.
  3. Specific rights vary by jurisdiction.

The employee may be able to seek advice or representation through a union. They should check membership and workplace procedures and follow the applicable local rules; the exact support available depends on the context.

Look for these in your work

  • Possible benefit stated
  • Practical next step
  • Scope qualified
3 · Transfer

A business says union discussions are a waste of time. Explain one possible employer benefit of resolving a shared employee concern through discussion.

Give me a hint

Consider information, trust and operational stability.

Compare my reasoning
  1. Employees may surface a common problem affecting work.
  2. A clear agreement can reduce repeated individual disputes.
  3. The outcome still depends on evidence and implementation.

Discussion can reveal a shared scheduling or safety problem and help the employer agree a consistent response. Resolving it may improve trust or reduce repeated disputes, although the benefit depends on the agreement and its implementation.

Look for these in your work

  • Employer perspective included
  • Mechanism explained
  • Conditional outcome stated

Common mistakes

  • Claiming union membership guarantees a pay rise
  • Assuming all employees have identical interests
  • Confusing a union with an employer's HR department
Recall without your notes

What can you explain now?

What is a trade union's general role?

Compare with the explanation

Represent employees' interests

Unions organise to represent workers.

After trying it yourself, choose your next review. This is your self-assessment.

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Make it stick

How can collective representation change the way employees raise a concern?

If you needed the solution, close it and solve the problem again from a blank page. A correct answer is stronger when you can explain the reason for each step.

Keep learning Business Studies (9-1)

Course scope and assessment

Ninety-eight original lessons map all 63 sections in the 2026 Version 2 syllabus, with worked examples and guided, independent and transfer practice. Cambridge states that 0986 is otherwise the same in subject content as 0450 but is graded 9–1. In June and November, entry is available in Administrative Zone 3 and to centres in Oman and UAE; confirm eligibility with Cambridge and your centre. Candidates cannot combine 0986 with 0450 or O Level 7115 in the same series. For 2027 first assessment, the code changes to 0774. Simple cash-flow forecast construction is assessed; construction of income statements and statements of financial position, price-elasticity calculations and exchange-rate calculations are excluded. Cambridge lists past papers and resources on the 0450 page for use with 0986. Full timed-paper practice, exam-grade evidence and human subject-teacher review remain outstanding; learner practice is self-checked and is not an official Cambridge grade.

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