Role of Trade Unions in 2011

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Table of Contents

Introduction
Reasons for Union Membership
Expectations from Union Membership
Impacts of Legislative Amendments since 1996 on Trade Union Activities
HR Practices and their Impact on Trade Union Membership
Executive Summary
List of References

Introduction

Clyde E. Dankert, a professor in economics, in his articles formulates what he calls a comprehensive definition of a trade union. He defines a trade union as “a continuing organization of employees established for the purpose of protecting or improving, through collective action, the economic and social status of its members.’’

From his definition, the purpose for the formation of trade unions is to protect and improve the economic and social status of the members (Sinha, 2010). It is an organization of workers whose main objective is to regulate the relations between workers and employers Trade unions like most organizations enjoy a legal personality nature; can enter into agreements on behalf of their members and can sue or be sued. This also implies that powers and obligations only extend to the union itself but not to the members and officials.

This report will explore on the following topics: top reasons for trade union membership, member’s expectations from such membership, effects of legislation on trade unions since 1996 and the effects of Human Resource practices on trade union membership. The decline of trade union membership has been a characteristic of many countries.

In Britain for example, in 1970, 58% of workers were trade union members with over seventy percent of worker’s salaries set by collective bargaining; by 2004 less than thirty percent of workers were union members.

Reasons for Union Membership

Union laws such as the National Labor Relations Act also known as the Wagner Act, reserves the right of workers to unionize. Trade unions perform the following activities: provide benefits to members (e.g. legal advice), collective bargaining, enforcing strikes and promotion of political activity through participating in legislation for the benefit of their members.

The main factors driving trade union membership for representation are, amongst others: safety at workplace, obtain higher remuneration, provision for job security, legal representation and getting better employment benefits.

An individual worker possess little bargaining power relative to that of the employer, the best action to remedy this is to join a union which takes a powerful collective action via strikes against an employer.

Need for equal treatment by the workers at the workplace and protection from discriminations and favoritisms necessitates unionism (Bailey et al., 2010).

Trade unions compel the employers to provide welfare services and retirement benefits for their employees, these acts as an incentive for union membership Unionism provides a sense of belongingness which is very much desired by workers; influences from member co-workers also motivates unionism. Trade unions provide legal representation to workers facing legal action hence protecting members from exploitation.

To curb the issue of conflict of interest, unions are expected to have a distinguishable identity from that of employers and the state In a research, it was established that over 60%t of all respondents were of the opinion that workplace safety and obtaining better benefits were significant factors in membership decisions. Over 50% of the respondents said getting higher salaries and increasing job security were important factors in their decisions to join unions. The poll suggested that employees rated poor management as less significant.

United States Department of Labor through the bureau of labor statistics report that union membership has declined since 1983. For example, in 2010, 12.5% of employees were union members down from 20.1% in 1983 (Bureau of Labor Statistics, 2011). In Australia Unmet demand is an important factor for Australian unions.

Unmet demand is employees in non-union workplaces willing to join a union if presented with a chance. According to the Australian Worker Representation and Participation survey, unmet demand is highest among low income earners and young workers (Shirts and Slogans, 2010). It is widely recognized that through the negotiations of productivity deals and implementation of better working policies, industries with unions exhibit higher wages and salaries compared to industries that lack trade unions.

Expectations from Union Membership

Trade unions perform their roles independent of employers. However, to effectively perform its duties, unions are expected to establish working relations with employers. In regard to the reasons why workers join unions, trade unions are expected to negotiate, on behalf of their members, agreements with employers on matters of pay and conditions.

For example, salaries and wages in Australia rose at a higher rate in 2007 than in 2006, trade unions playing a significant role (Watts, 2001). Trade unions are expected provide members with legal and financial advice, education and training facilities and consumer benefits. Trade unions also attend meetings with their members.

Trade unions are known to represent their embers outside the workplace. For instance, Trade unions engage with governments, agencies and other organizations for policies in meeting their member’s interests. For example, union leaders in United States are complaining that the president has not focused on job creation and other plans intended to bring their members back to employment.

Following the deteriorating working conditions reports, workers expect effective monitoring of working conditions at workplaces by the trade unions. Guided by the worker’s desire for self-expression, trade unions are in the forefront in providing a platform for self-expression.

Professionalism, this is expected from all unions; the quality and effectiveness of education and training provided by the Trade Union College needs to be improved. Unions have for the past decade involved themselves successfully in politics.

Unions have invested resources in political campaigns and give donations to federal candidates. According to the Washington Post, union donations at the beginning of 2011 dropped by about 40% as compared to 2009 (the Washington Post, 2011).

Impacts of Legislative Amendments since 1996 on Trade Union Activities

Trade unions are reeling from legislative changes which have negative impacts on the unions. Australia’s Conciliation and Arbitration Act 1904, provides that ‘’no employee would be discriminated against or victimized by employers because of their union membership, no employer shall dismiss any employee from employment by reason merely of the fact that the employee is an officer or member of an organization.’’ These provisions were enhanced in 1914 through amendments (Bailey et al., 2010).

The adoption of a closed shop policy in trade unions provide for mandatory membership of all employees to the same trade union, hence strengthening the organization. This has the positive effect of encouraging more workers to join trade unions.

The introduction of Australian Workplace Agreements also known as AWA by the Howard Government was, according to trade unions, an attempt to restrict and undermine the bargaining power of trade unions. AWAs and individual agreements excluded the trade unions. Trade unions warned their members to signing of the AWAs as they would bring inequality between the employees and employers. Criticisms of the AWAs led to the introduction of “fairness test” in May 2007 (Balnave et al., 2009).

The government of 1996-2007 repealed federal union preference provisions preventing the inclusion of awards and agreements but introduced provisions of voluntary unionism in the Workplace Relations and Other Legislation Amendment Bill 1996. These provisions were incorporated into the Workplace Relations Act 1996 which retained the anti-discrimination protections.

The introduction of voluntary unionism which provided freedom not to associate had a great impact on union membership. The then minister, Peter Reith, confirmed that workers would have a right to join or not to join a union and restrictions to union entry to workplaces imposed (O’Neill, 2010).

The Workplace Relations Act (Cwlth) 1996 and subsequent amendments to the Workplace Relations Act (Workchoices) 2005, require employers to conduct and record regular performance. This prohibits dismissal of an employee without valid reason (Budhwar, Varma and Denisi, 2008).

The Howard Government through the Workplace Relations Act 1996 (Cwlth), as amended in 2005 (Work Choices Act 2005) reduced the influence of trade unions by reducing the influence of collectively determined working conditions and diminished worker entitlements under awards.

This reduction of influence of trade union drastically led to a fall in membership numbers. Following the implementation of the Workplace Relations Act (1996) the equity of the wages system was under pressure via the union and non-union certified and individual agreements. This was further intoxicated with the unsuccessful attempt by the then federal government to illegalize pattern bargaining.

This was intended to diminish the trade union’s power of bargaining with common claim as a basis. In view of this, the Australian Council of Trade Unions oversaw demands for salary increment in excess of $20 (Watts, 2001). The Howard Government preferred voluntaristic arrangements over workplace representation. This compromised the ability of workers to legally go on strike hence negatively affecting trade union activity.

The implementation of these new laws was opposed by the Australian Council of Trade Unions especially through the media. The council adopted the ‘Your Rights at Work’ campaign as a tool for opposition. The federal Government projected a hostile view on trade unions with the now opposition leader defining trade unions as the enemy.

This ‘voluntarist’ approach proved unpopular among the industrialist, this was evident when in 2007 the conservatives lost the federal election to the Australian Labor Party, also known as ALP. ALP under Kevin Rudd promised to abolish the Work Choices Act. ALP put emphasis in recognizing an enhanced role for trade unions introducing what they call a ‘protectionist’ approach.

The policy adopted by the APL promotes the concept of democracy coupled with freedom of association hence enhancing union involvement (Bailey et al., 2010).

In overall, the APL policy approach which aims at reforming the Howard Government’s Work choices legislation is fairly modest relative to the workplace reform in the European Union (Wilkinson et al., 2010). The Australian government is currently consulting trade unions in the legislation process.

The Australian government is have been discussing provisions intended to ensure equal access to opportunities and rewards for the women in the labor market (Kramar, 1987). This affirmative action legislation will promote opportunity equality for women. Therefore, trade unions are fulfilling their role of promoting gender equality at work (Dickens, 2000). The involvement of trade unions in legislation is a positive move with regards to the trade union movement.

HR Practices and their Impact on Trade Union Membership

Human resource practices have, according to research, an influence on employee’s attitudes and behaviors at work. Recent studies have aimed to examine the extent to which employee’s performances at work mediate the relationship between employee attitudes and behaviors and HR practices.

It is of the opinion of many researchers that, the HR practices adopted by a firm has impacts employee’s experiences which in turn affect their behaviors and attitudes.

HR practices such as decentralized design of jobs, socialization of employees, provision of training and development opportunities, information sharing and employment security have had an influence on organizational and employees’ outcomes (Appelbaum, 2002). Such practices will have a negative impact on the membership of trade unions as many of the workplaces’ concerns are taken care of.

Research has suggested that provision of training facilities promotes the perception that an organization values an employee’s current and future contributions (Cornell University, 2007). Such HR practices address worker’s interests which in turn enhance job satisfaction and organizational performance.

New paradigm firms recognize the need to motivate and retain high talent employees as an important element in business management. The loss of needed talent is costly as a result of bidding up of market salaries; this necessitates HR practices (Cheng, 2004). The use of HR practices and the decline in union membership are intertwined. Researchers come up with the hypothesis that HR practices act as a substitute for unionization (Machin and Wood, 2005).

Both union suppression and substitution are as a result of employer’s opposition to unions. Favorable HR practices evoke the view of insignificance of unionization as workers see less need to join unions (Florito, 2001). The message put across is that there is no need for unionism; the cause of unionism has allegedly been catered for.

On the other hand, trade unions have counter attacked such impacts by influencing some human resource management practices. For example, trade unions have adopted selective probationary hiring policies which are a formal approach to HR management (Maki, 2008).

Executive Summary

Although the roles of trade unions are very significant, governments and public entities have since the twentieth century been against trade unions. Governments have, for example the Australian government, through legislation tried to diminish the influence of trade unions.

Employers have also had a hand in the decline of union membership though Human Resource practices. Trade Unions around the world have through councils (e.g. The Australian Trade Union Council) continuously and reluctantly defended their position. Employees see unionization as less important, Legislative Amendments have compromised union activities, and Employees seek union suppression and substitution methods; these amongst others are in the forefront in the causes of decline in union membership.

In regards to the decline in trade union membership in the recent years especially among young and low earning workers; trade unions have resorted the strategy of recruiting, servicing and organizing young people (Bailey et al., 2010).

In conclusion trade unions have had major implications in the expansion of casual employment in Australia. Traditional trade union policies have failed in these areas and instead remain dominant. In regards to this, Trade unions have come up with a new approach intended decasualize employment. This new approach attempts to create a less hostile but discriminative view on non-standard employment.

List of References

Appelbaum, E., 2002. Work Employment Relations in the High Performance Workplace. The Impact of new reforms of work organizations on workers. Murray G., Belanger J., Giles A. London. P. 120-149.

Bailey, J., Price, R., Esders, L., and McDonald, P., 2010. Marketing Unions to Young People. Journal of Industrial Relations.

Balnave, N., Brown, J., Maconchie, G. & Stone, R., 2009. Employment Relations in Australia (2^nd Ed). Queensland: John Wiley & Sons.

Budhwar, P., Varma, A., Denisi, A., 2008. Performance Management Systems: A Global Perspective. Routledge global human resource management series. Taylor & Francis.

Cheng, J., 2004. The Influence of Human Resource Management Practices on the Retention of Core Employees of Australian Organizations: An Empirical Study. Murdoch University.

Cornell University, 2007. The Influence of HR Practices on Employee Commitment and Voluntary Turnover. Centre for Advanced Human Resource Studies, School of Industrial and Labour Relations. New York.

Dickens, L., 2000. Promoting Gender Equality at Work- A Potential Role for Trade Union Action. Journal of interdisciplinary Gender Studies: JIGS, Vol. 5, No. 2, Dec 2000: 27-45.

Florito, J., 2001. Human Resource Management Practices and Worker Desires for Union Representation. Journal of Labor Research. Transaction Publishers. Florida.

Kramar, R., 1987. A Challenge to Australian Employers and Trade Unions: Affirmative Action. Journal of industrial relations. University of Sydney.

Machin, S. and Wood, S., 2005. Human Resource Management as a Substitute for Trade Unions in British Workplaces. Industrial and Labor Relations Review. Cornell University, School of Industrial and Labor Relations.

Maki, D., 2008. Trade Union Influence on Human Resource Management Practices. Industrial Relations: A Journal of Economy and Society. Vol 33, Issue 1. Pp. 121-135.

Shirts, D., Slogans, D., 2010. Marketing Unions to Young People. Journal of Industrial Relations February 1, 2010 52: 43-60.

Sinha, 2010. Industrial Relations, Trade Unions, and Labour Legislation. Pearson Education IndiaISBN8177588133, 9788177588132

Washington Post, 2011. Labor unions go from high expectations in early days of Obama presidency to sobering reality. Web.

Watts, M., 2001. Wages and Wage Determination in 2000. Journal of Industrial Relations; vol. 43, 2:pp. 177-195.

Wilkinson, A., Gollan, P., Marchington, M., 2010. The Oxford handbook of participation in organizations. Oxford handbooks in business and management. Oxford University Press.

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