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Executive Summary
A trade union is an organization of workers whose main objective is to regulate the relations between workers and employers. Trade unions have a legal personality separate and distinct from that of its members. This means that powers, obligations and immunities enjoyed only extends to the union itself, and not to its officials and members. For example, a trade union has the capacity to contract, can sue or be sued and can own property.
Introduction
The need for support and representation in legal matters, financial support, advice and welfare activities are some of the reasons behind formation of unions. A closed shop policy in trade unions provide for mandatory membership of all employees to the same trade union, hence strengthening the organization.
Members expect protection and effective monitoring of working conditions by the trade unions. It is widely recognized that working conditions are deteriorating; unions need to improve their capability to monitor working conditions (Wang, 2005). Trade unions provide legal representation to workers facing legal action hence protecting members from exploitation. Unions are expected to have a distinguishable identity from that of employers and the state (Zhu, 1998).
Professionalism among the trade union officials is desirable, the quality and effectiveness of education and training provided by the Trade Union College needs to be improved. It is widely recognized that industries with trade unions tend to have higher wages than those without. Unions achieve this by negotiating productivity deals and assisting in the implementation of new working policies, this enables the firm to afford higher wages.
Trade unions are reeling from the effects of legislative changes which have made it hard for them to perform their duties. The introduction of the Workplace Relations Act 1996 together with subsequent amendments compromised trade union activities. The act required bargaining for the guaranteed conditions instead of strikes. The act also Introduced Australian Workplace Agreement (AWAs) and individual agreements from which trade unions were excluded.
The use of strategic selection techniques to manipulate union sympathies in the workplace and establishing alternative representative forms discriminated trade union activities (Briggs, 2004). In the post-1996 era the federal government has promoted employer militancy, there has been a hostile environment towards trade unions especially in Australia. Minister Abbott of Australia described unions as the ‘enemy’ (Dimitrova, 2005).
In recent studies some HR practices have shown to have influence on organizational and employee outcomes (Appelbaum et al., 2000). Practices such as the systematic selection of employees, provision of training opportunities, perceived reward equity, job security, perceived management support, and the decentralized design of jobs have had a significant impact on employee attitudes and behavior.
Use of HR practices has led to both union suppression and union substitution. This has the impact of reducing the number of workers joining trade union (Balnave et al., 2009).
In conclusion, in the post 1996 environment trade union formation has been on the decline due to the undercutting effects of the employers and the federal government.
Reference List
Appelbaum, E., Bailey T., Berg P., and Kalleberg A., 2000. Manufacturing Advantage.
Why high performance work systems pay off. Itacha: Cornell University Press.
Balnave, N., Brown, J., Maconchie, G. & Stone, R., 2009. Employment Relations in Australia, 2nd ed. Queensland: John Wiley & Sons.
Dimitrova, D., 2005. Trade union strategies in Central and Eastern Europe: towards decent work. Tottenham Court Road, London: International Labour organization.
Wang, H., 2005. Asian Transnational Corporations and Labour Rights: Vietnamese Trade Unions in Taiwan-Invested Companies. Journal of Business Ethics, 56: 43-53.
Zhu, Y., 1998. Trade Unions in Asia: An Economic and Sociological Analysis. New York: Routledge.
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