Employee Relations

Employee Relations

Introduction

There are factors at the international and local levels that have influenced the decline of unions. A combination of both local and global factors has contributed to the decline. Therefore, the claim that global factors have played a major role is partially true.  Three factors have led to the decline of unions in Australia, two of which are global while one is local. These factors include introduction of Accord, changing employee composition and business cycle’s casual effects.

Although there are influential factors on the global trade stage that have led to the decline of trade unions in Australia, the local environment has played the biggest part. The Australian Council of Trade Unions (ACTU) and the Australian Labor Party developed a strategy known as ‘Statement of Accord’ in 1983, which gave the government the mandate to establish income policies. The Accord also planned to restructure various industries, especially where unemployment was high. In return, trade unions were to relinquish their rights to industrial action. Reducing union rights to industrial action reduced their power for collective bargain on behalf of employees (Bryson, Ebbinghaus and Visser, 2011). This was a unique setback to Australia that consequently led to the reduction of trade unions.

The changing employee composition in the Australian workforce involved additional of employees to non-unionized sectors and decreasing employees in unionized sectors (Spooner and Innes, 2001). This is consistent with the global trend caused by the decreasing manufacturing sector and increasing service sector. In addition, the existing unions failed to recruit part time and casual workers in the union. This left out the rapidly growing type of workers, especially in the service sector. Consequently, the number of employees belonging to the unions continues declining.

Business cycle’s casual effects relates to high rates of unemployment in the Australian economy (Pyman, Teicher, Cooper and Holland, 2012). Although unemployment is common in many countries, its levels in Australia, combined with other local factors had a great impact on the declining unions. During harsh economic conditions, unions have not been able to retain those who lose their jobs. Therefore, there is reduction of union members at such times. Recruitment of new members has proved difficult due to bad perception attributed to the unions. Unions are perceived to be unable to address their members’ concerns. Managers’ bad attitude towards unions has discouraged some employees from joining the unions.

To halt this decline, there are several mechanisms that the Unions can utilize. Improving their recruitment strategy to engage new members is a mechanism that can reduce the decline of the unions. Due to the difficulties involved in recruiting employees, leaders of the unions should start sensitizing people about their role in employee welfare from school level (Lee and Lansbury, 2012). They should create programs to be used at school to educate the upcoming employees on the need to join unions. Such a move can counter the negative perceptions and attitudes that people have created about unions.

The second strategy that unions can use is to change their policies so that they can effectively respond to the needs of its members. Many employees fail to join unions because they do not believe unions have the ability to solve their problems (Kearney, 2003). Unions can increase their acceptance from employees by being able to address issues affecting them promptly and effectively. This strategy can revive the unions and ensure that their future is guaranteed.

Another strategy to stop the unions from declining is to amalgamate small unions to form one effective organization. The strength of unions stems from their ability to make their presence felt. When small unions combine to make a big one, they increase their bargaining power because they have ability to cause a massive work disruption (Bryson, Ebbinghaus and Visser, 2011). However, the unions must improve their service delivery to the employees to gain their acceptance and support.

Conclusion

In conclusions, global factors partially play a role in the decline of unions in Australia. Although global factors such as changing employee composition and business’ casual effects contribute to the decline of unions, local factors play a critical role. One main local factor that has contributed to the decline of unions in Australia is the formation of the Accord. The Statement of Accord proclaimed by the Australian government limited the powers of the unions to take an industrial action. The changing employees’ composition decreased their number in the unions and the unions were unable to conduct an effective recruitment. The casual effects of business cycle caused unions’ decline by rendering many union members jobless during harsh economic conditions. Three strategies can be used by union leaders to stop further decline. The first one is improving their recruitment strategy to attract new members. Secondly, the unions can change their policies so that they can match with the expected service by members. Since members join to satisfy their needs, those needs must be met for them to remain active members. The final strategy that unions can use to stop the decline is to consolidate small unions to form big unions.

References

Bryson, A., Ebbinghaus, B., & Visser, J. (2011). Introduction: Causes, Consequences and cures of union decline. European Journal of Industrial Relations, 17 (97), 97-105.

Kearney, R.C. (2003). Patterns of union decline and growth: An organizational Ecology Perspective. Journal of labor research, 14 (4), 561-578.

Lee, B., and Lansbury, R.D. (2012).Refining varieties of labor movements: Perspectives from the Asia-pacific Region. Journal of industrial relations, 54 (4), 433-442.

Pyman, A., Teicher, J., Cooper, B., and Holland, P. (2012). Unmet demand for membership in Australia. Journal of Industrial Relations, 51 (1), 5-24.

Spooner, K., and Innes, C. (2001). Union membership: Australia. Employment Relations Record, 1 (1), 27-35.

 

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