Labor unions find financial statements important since they contain key information about the company’s health, stability, use of cash and profitability that can help with collective bargaining agreements.

Why are investors interested in Analysing financial statements?

Investors and lenders are interested to know the solvency position of an organization. They analyze the financial statement position to know about the safety of their investment and ability to pay interest and repayment of principle amount on due date.

What is the importance of financial analysis for Labour Union?

Labour unions analyze the financial statements: To assess whether an enterprise can increase their pay. To check whether an enterprise can increase productivity or raise the prices of products/ services to absorb a wage increase.

What is the use of financial statements for potential investors?

Financial statements are important to investors because they can provide enormous information about a company’s revenue, expenses, profitability, debt load, and the ability to meet its short-term and long-term financial obligations.

What financial statements are investors interested in?

The financial statements used in investment analysis are the balance sheet, the income statement, and the cash flow statement with additional analysis of a company’s shareholders’ equity and retained earnings.

Why are trade unions interested in the income statement?

They directly or through their trade unions examine the Income Statement / Statement of Comprehensive Income of the employing organisation to establish its revenue and expenditure and whether it is making profits or losses or surpluses or deficits. If it is making profits or surpluses, they will use the Income Statement to agitate for better pay.

Why are trade unions important in the workplace?

Members of the union tend to have higher wages than non-unionized workers. Trade unions also sometimes act as representatives of workers in case of legal matters The rights of the employees are better protected. For example, they cannot be unjustly removed from work.

What are the political interests of Trade Unions?

Trade unions represent the political interests of poor and disadvantaged people. Most of the trade unions have monopoly power which they use to raise wages above competitive levels. This reduces economic efficiency and increases inequalities by raising the wages of highly skilled workers. As a collective voice,…

Why do trade unions have a standard rate policy?

Unions’ standard rate policies ensure equality in distribution of income between workers of the same skill set. Trade unions represent the political interests of poor and disadvantaged people. Most of the trade unions have monopoly power which they use to raise wages above competitive levels.