Trade Union Membership And Decline In Australia: Antecedents And Consequences

Trade Union membership in Australia has declined significantly since the 1980s. As a result, Unions are becoming an irrelevant actor in Australian Employment Relations'.

Drawing on academic research and commentary, provide a response to this statement. In framing your argument, consider the antecedents and consequences of the decline in trade union membership (and trade union density).

Make sure you cite and correctly reference your sources, using the Academy of Management referencing style.

Trade union in Australia

The essay has provided a critical analysis on decline in trade union in Australia. Trade union is a group of individuals, labor for accomplishment of common goal and objective. The union involves a number of processes and procedures that result into the overall benefit of members of the union. The objective of trade union can be said as: improving standards of safety, integrating trade, health care and retirement benefits, pay scale of labors, improving working conditions and many more (Roy Morgan research, 2017).

The essay describes about the trade union membership of Australia. During the period of depression in 90’s in Australia, the trade union has declined to a huge extent. The essay provides the factors that have lead to decline in the trade union membership. The decline in trade union has resulted into becoming union as an irrelevant factor for Australian economy. But this is not true, as trade union are very considerable factors for workforce as well as for organizations. The reason behind this is trade union leads to decrease in the turnover rate of the organizations and would lead to increase in the employment in nation. After describing such factors, the essay has made discussion over antecedents and consequences of the decline in trade union. At last the essay has provided conclusion regarding the findings made in the essay (Lewis, 2010).

The department of human service and tax office comprises of more than 65% of the labors as compare to any other paid employment in Australia. There are 11.2 million people who were employed as full time job, out of which approximately 1.9 million that is 17.4% of the employees’ forms trade union. In case of Australia’s defense workers and public administration the percentage of trade union that is 28.7%, is more than the average of nation which is of 17.4%. While in case of other industries of Australia the percentage of trade union like in case of transport and storage it is 23.5% and in case of electricity, water and gas it is 27.3% (Kelly, 2015).

According to Australian bureau of statistics, it a straight fall in trade union was observed in Australia. According to them, there were now only 15% of trade unions from all workers. In 2013 the percentage of trade union was calculated as 17%, which has reduced to 15% in 2014. In numbers, there were only 1.6 million people left in trade union in 2014 who were members of full time job. The reason for such decline was found as improving the workplace of their respective organizations. Here by improving the workplace of organization means by improving the employees’ wages, rights, safety and other factors.

According to Kate Carnell, chief executive of Australian chamber of commerce and industry, the decline in trade union is considered as one of the considerable issue in economy of Australia. The decline in trade union would affect the free trade agreement with other countries which would result into decrease in the value for money. According to her, if the trade union remained declining, it would result into affect the policies of Australian government.

The decline of trade union membership in Australia

According to the employment survey conducted by Stephen Collett, the reasons for decline in trade union were as: approximately 20% of the employees were not paid for their entitled leaves from 10 years. The proportion of decline in percentage of trade union majorly in construction industries such as: public administration, education, safety, manufacturing, transport, retail, construction. Besides these the decline in percentage of trade union were also observed in case of social and health care industries (Turnbull, 2006). In case of above mentioned industries, it was observed that health care industry has highest percentage of decline in trade union as of 34%. While in case of public administration, water and electricity the percentage was observed as 31%. The percentage of total trade union in 1986 had declined to a huge extent during the period of 1986 to 1996.  

In comparison to 1992, in which the proportion of trade union was of approximately 40% has declined to 15% in 2014. The decline can also be classified into male and female percentages as in case of male trade union the decline was of 14% while in case of females, the decline was observed as 16%. In comparison to Tasmania which is a small island on commonwealth of Australia, has highest number of employed people with it, has trade union of 24%, which is 10% more than that of Australian’s trade union (Ledwith & Hansen, 2012). It has been observed by community and public sector union that now there are fewer numbers of individuals who joins the trade union membership (Community and public sector union, 2012).

The commission of productivity in Australia has emphasized the relationship of workplace law. According to Keri Phillips, the Australia has a unique trade union relationship. The trade union was introduced in Australia during the period of 1860 and 70’s, which was found to be very successful even when the labor population was scarce. During the period of 1890’s a severe depression was observed in the Australian economy, which has swiped out the benefits given to the members of trade union of 30 years period. This has resulted into unsuccessful movement of trade union, which has resulted into reduction in the membership of trade union members (Bowden, 2011). The main reason behind this was, union was not capable in accomplishing the requirements of members and would also not able to negotiate with them. Thereafter the entry of some colonial politicians has arbitrated the not satisfied workforce. The motive behind such arbitration was to form a mechanism for union. The reason behind forming such mechanism is that if the workforce and boss found unable to negotiate with each other, the mechanism would help in settlement from both the parties (Australian bureau of statistics, 2014).

The trade and labor union plays a considerable role in achieving the common objective of the nation and society as a whole. But due to recession during the period of 1990s has increased unemployment to a huge extent and lead to closing of many business and trade unions. Besides this, by forming trade union in the organizations, the workforces would be ensured security in their jobs. The main objective of trade union is to make the workforce earn according to the working hours as put in by them.  Hence decline in trade union cannot be considered as an irrelevant factor in Australian economy (Hubbard, Garnett, Lewis & O’brien, 2014).

Unions as an irrelevant actor in Australian Employment Relations

According to community and public sector union, the laws formed in 1990s for workplace, was very stringent that has weaken the influence of trade union on their organization. This has made difficult for trade union to recruit and organize workers. Besides the negative consequences of trade union on economy of Australia, it has also benefitted in terms of decrease in the monopoly. This has increased the profits of other organizations and has increased the number of startups in Australia. As a result, this has reduced the differences between rich and poor people and organizations. The stringent policies and anti union strategies has lead to increase in the competition among nation. In case of organizations paying salaries to their employees observed that those who forms a part of trade union, has to pay higher wages as compare to those who were part of non labor unions (Gamut, 2015).

Hence this has considered as a positive feedback for organizations to reduce the trade unions, as because of this, the organization would be paying lesser wages to its laborers. Hence this has resulted into a situation, where majority of the individuals got influenced to work in an organization which lacks in proportion of trade union. However the decline in trade union has also resulted into consequences such as: full time jobs were reduced to part time jobs, increase in casual works. Besides this, more of the educated persons have started to form their own organizations by not considering relevant the importance of trade unions in nation (Koops & Macaj, 2014).

It has been researched that demographic factors and union commitment are considered as tow possible predictors and antecedents in trade union. However demographic variables does not explains about the activities conducted by union, and factors such as marital status, age, education, seniority of the members of union. The demographic factors consider the personal factors of its members such as their work experiences, climate of industrial relations. Hence demographic factors provide inconsistent and inconclusive results for the activities of union. The critical analysis of demographic factors as: some authors have found that there is no relationship with the personal factors of members of the union and activities of trade union (Reith, 2012).

In case of consequences, the major focus of this is on participations of members in activities of union. It has been observed that if members of the union increase their efforts if they consider the activities of union as participatory in nature. Besides this, it is also considered by the union members that the return that would be received by participating into activities will overcome the cost of participating.

The participation from the laborers can only be ensured if they understand the benefits of trade union for them. Participation by trade members has a direct impact on building the industrial relationships with other industries of the same nation as well as with other nation. It was observed that increase in the performance of the members can only be ensured if, members are ensured of the positive relationship between increase in the productivity of the organization due to improvement in the human and industrial relations (Tripti & Ginni, 2015.

Critical analysis of trade union

In case of organizations which has no trade unions in their organizational structure, more members or labors who are dissatisfied quit the organization or job as compare to those of organizations which comprises of trade unions; the reason behind this is, in trade unions organizations, the union ensures the better working of organization by changing the working, rules and policies for the benefits of its workman. Hence it can be said that the consequences of trade union has decreased the percentages of turnover, and increase in the labor productivity, high morale, and satisfaction (Toscano, 2015).

The trade union density of Australia has never declined below 40%during the era of 1913 to 1992, which was considered as high ratio. The unionism has started declining after 1990, while by 2008; the members of trade unions remained too few. The decline in trade union has impacted the overall growth of employment, industrial labor in the nation (Phillips, 2015). The reason observed due to such decline was as: issues in labor party, gender, locality and ethnicity. The percentage of trade union has reduced drastically in the period of 2009 to 46% as that of 85.2% in 1996. The decline in union, has resulted into, only 10% of the jobs in organizations which comprises of trade union. This has increased the number of employment opportunities in non union organizations (Oikelom, 2014.

Conclusion

The essay provides a brief understanding for the trade union and decline in the proportion of trade union in Australian industries. By analyzing the findings of essay it is concluded that there are not any specific rule of applying the procedures and policies by the trade union for the betterment of its members. Hence the policies formed by union members are informal in nature. By analyzing the antecedents and consequences of trade union, the analysis of union activity can be done better. The depression during the period of First World War has resulted in decline of trade unions in Australian economy which has resulted into decline in the unemployment level and forming fewer organizations comprising unions. However this has also resulted into positive feedback in the organizations by reducing the affect of monopoly and increase in formations of new organizations.

References

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Bowden, B,. 2011 The rise and decline of Australian unionism: a history of industrial labour from the 1820s to 2010. <https://www98.griffith.edu.au/dspace/bitstream/handle/10072/40801/69891_1.pdf>. Viewed  22^nd March, 2017.

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