What is a key function of trade unions in the context of wages?

The primary role of trade unions in the context of wages is to negotiate wage rates and working conditions on behalf of their members. Trade unions serve as a collective voice for workers, allowing them to bargain with employers more effectively than individuals acting alone. By negotiating, trade unions aim to secure fair and equitable pay, as well as improved working conditions. This process often involves discussions regarding pay scales, benefits, and other employment terms which directly affect the financial well-being and job satisfaction of employees.

While supporting government policies or managing company profits may be important in broader economic contexts, those are not the primary functions of trade unions. Similarly, while trade unions may strive to reduce wage disparities, their central aim is to engage in collective bargaining processes to improve their members' wages and working conditions, rather than aiming to eliminate disparities entirely.