---
title: "Trade unions and relation with management"
subject: "Construction Management"
chapter: 10
key: "semester_8/construction_management:trade-union-note"
source: https://www.bctengineer.com/q/semester_8/construction_management/trade-union-note
site: BCT Engineering
---

# Trade unions and relation with management

Construction Management · Chapter 10: Personnel Management

- Asked in: 2068 Bhadra (old course), 4 marks; 2066 Magh (old course), 4 marks; 2064 Poush (old course) (asked 3 times)
- Video: [Business Studies –Trade Unions Explained Simply](https://www.youtube.com/watch?v=dvASZ0JfjW4) — BizEdMadeSimple
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/construction_management/trade-union-note
- Whole chapter: https://www.bctengineer.com/md/semester_8/construction_management/chapter-10

## Question

Write a short note on trade unions (advantages and disadvantages of trade union and relation with management).

## Short answer

A trade union protects workers' interests through collective bargaining. Advantages: fair wages, job security, communication channel. Disadvantages: strikes, higher costs, political interference. Good relations require mutual respect, regular meetings, and fair grievance handling.

## Answer

A **trade union** is an organisation of workers formed to protect and promote their common interests, such as wages, working conditions, job security and welfare, by collective bargaining with management. In Nepal, trade unions are recognised under the Labour Act 2074 (2017) and the Trade Union Act; construction workers also join unions.

#### Advantages
- **For workers:** collective bargaining power for fair wages and benefits; protection against unfair dismissal; better safety and working conditions; a means to settle grievances; training and welfare programmes.
- **For management:** a channel of communication with workers; helps in handling disputes; stable labour relations; workers' representatives can help to implement discipline and productivity programmes.

#### Disadvantages
- Strikes, bandh and stoppages cause delay and loss, which is serious for time-bound projects.
- Union demands can raise wages and costs.
- Political interference and rivalry between unions.
- Resistance to new methods, machines or reduction of staff.
- Pressure to employ members, which reduces management freedom.
- Disputes over contract rates and bribery-like "tax" in some places.

#### Relation with management
A healthy relationship is based on mutual respect, honest communication and written agreements. Management should recognise the union, hold regular meetings, pay on time, ensure safety and welfare, settle complaints early through a grievance procedure and negotiate collectively. Workers should follow discipline and give due output. When disputes occur, conciliation and arbitration under labour law are used. Good relations give productivity and industrial peace.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. What is the main purpose of a trade union?
   A. To train engineers in new technology
   B. To protect workers' common interests through collective bargaining with management
   C. To manage the project schedule for the contractor
   D. To set government labour law
   Answer: B. A trade union is an organisation of workers that protects wages, conditions and job security by collective bargaining. (Key point: Definition)

2. Why are union strikes and bandh especially serious in construction?
   A. They cause delay and loss on time-bound projects
   B. They reduce workers' wages
   C. They remove the need for supervision
   D. They raise the quality of work
   Answer: A. Stoppages cause delay and loss, which is critical for time-bound projects. (Key point: Disadvantages)

3. Which is an advantage of a trade union for management?
   A. It provides a communication channel with workers and helps handle disputes
   B. It gives management freedom to hire anyone
   C. It always lowers wage costs
   D. It removes the need for written agreements
   Answer: A. Unions give a channel of communication, help settle disputes and give stable labour relations. (Key point: Advantage for management)

4. Which practice best builds a healthy union-management relationship?
   A. Paying wages late to keep control
   B. Avoiding written agreements
   C. Ignoring complaints until they become disputes
   D. Recognising the union, holding regular meetings and settling complaints early through a grievance procedure
   Answer: D. Mutual respect, honest communication, written agreements and early grievance settlement keep relations healthy. (Key point: Healthy relation)

## Related in Construction Management

- [Time cost trade-off concept with example](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Atcto-concept) — Construction Management, chapter 2, asked 5×
- [Time cost trade-off and steps in planning](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Atcto-steps-planning) — Construction Management, chapter 2

## Related in other subjects

- [Normalize sale relation up to 4NF](https://www.bctengineer.com/question.md?key=semester_6%2Fdatabase_management_system%3Anormalization-sale-example) — Database Management System, chapter 4
- [Natural resource management approaches and sustainability](https://www.bctengineer.com/question.md?key=semester_6%2Fenergy_resources%3Aenvironment-development-society-resource-management) — Energy Resources, chapter 8