Why Has Trade Union Density Declined in so Many Countries since the Early 1980s - Coursework Example

WHY HAS TRADE UNION DENSITY DECLINED IN SO MANY COUNTRIES SINCE THE EARLY 1980S? Introduction Over the last 30 years, since the early 1980s, trade union density has experienced a declining trend in most countries across the world (Aidt & Tzannatos 2002, p. 11; Williams 2014, p. 141). Approximations submit that the density of trade unions within Europe fell from 32.6% in 1995 to 26.4% in 2001. This decline is especially evident among countries that were not members of the European Union (EU) who experienced a density decline from 42.7% to 20.4% for the same time period unlike the EU member states where density declined from 31.0% to 27.3% for the same time period. In essence, trade unions densities are at their lowest and they represent a reduced percentage of the employed labour force in than at any other time in the last 30. Granting that nations ranking on the basis of union density has largely remained in the same order since the late 1970s, the array between union density in Sweden, the country with the highest union density in the EU, and France, the country with the lowest union density, has increased from 61.1% in 1980 to 68.3% in 2002. Decline is only negligible in Belgium, Sweden, Finland and Denmark with the decline based on their applying a variation of the Ghent system in which trade unions play a part in the management of unemployment insurance and benefit (Waddington 2005b, p. 1; Visser 2006, pp. 39-46). Trade union density remains largely lower in the US than in the UK and Canada, averaging 12.5%, 28.8% and 30.7% correspondingly the time period between 2003 and 2004. There is now proof that decreasing trade union density is reiterated across the globe even though some countries like Sweden, Belgium, Denmark, Iceland and Finland experienced increases in their trade union densities for the same time period while other countries like Italy, Spain and Norway experienced stable trade union densities for the same time period (Blanchflower 2006, pp. 1-2; Visser 2006, pp. 46-47). Analysing the generally declining trade union density shows that there have been interrelated and marked changes in the work force who are trade union members’ composition. Conspicuous amid these changes are: (1) a growing number of union members working in the public sector. Generally, the workers in the public sector are more unionised than their counterparts in industry, who are, in turn, more unionised than their counterparts in the private sector (Flanagan 2005, p. 33); (2) unionisation is becoming progressively more feminised. In a large number of countries females now make up more than half of unionised workers; (3) the unemployed and retired persons comprise an ever increasing proportion of unionised workers (Freeman 2005, p. 641). In fact, within the EU approximately 17.5% of trade union members are either retired or unemployed, with the figures ranging from 49.3% in, Italy, the country with the highest proportion to 1% in, Slovenia, the country with the lowest proportion (Visser 2006, p. 38-40); (4) minority groups, who include the immigrants and youth, have been reported to have refrained from joining trade unions and subsequently inhibited the renewal of these unions. Besides, the average age of the workforce is significantly lower than the average age of union members (Waddington 2005a, pp. 375-392); (5) an increasing percentage of unionised workers are employed in associate professional, professional and managerial occupations. The organizations that represent these workers have a tendency to focus on individual at the expense of collective union, particularly on the issue of remuneration. Moreover, associations between members and unions vary to a larger extent than those characterising other unions. As a result, dissimilar forms of collective solidarity are evolving in trade unions (Waddington 2005b, pp. 1-2). Discussion The context to global unionisation rate changes is that over the last 30 years a series of actions seem to have debilitated the unions’ power that that at the height of their power were seemingly international in nature. Employment compositions have also altered from unionized to non-union. The manufacturing employment portion plummeted virtually the world over, whereas the white collar employment portion increased, generating a workforce for whom trade union agendas were no longer pertinent. Younger workers have expressed a lesser amount of attention in joining trade unions than their paternities and maternities showed (Fernie & Metcalf 2005, p. 92). The feminine percentage of workers also increased as did the proportion of part-time workers; the workers level of education improved; and the labour force age composition shifted as the ‘baby boom’ generation become workers. Labour needs also became progressively globalised, as trade become relaxed, immigration was greater than before, and capital markets become globalised. Amplified practise of returns division has also meant that workers interests have become aligned with those of their employers. An average reduction in global economic development and output and the amplified inflation subsequent to the oil shocks of the 1970s, generated hostile labour market circumstances across the globe. Job loss rates rose, principally in Europe; joblessness dependable on a specified level of opportunities increased; real earnings decreased for blue-collar workforces, principally in the USA; and trade unions across the globe took real earnings slashes to motivate employment development in the 1980s (Pencavel 2005, pp. 202-203). In general expressions, clarifications on declines in trade union membership have fixated on perceived internal trade union insufficiencies and external threats. Nevertheless, it should be pointed out that some research studies have contended that trade union prospective members are increasingly personalised than in former years and, thus, are doubtful of joining trade unions. The substantiation on the amount of personalisation is motley, but it is evident that prospective trade union members are more involved than in previous years, which means that trade unions must be shown to provide ‘value for money’ before potential can be motivated to join (Addison & Schnabel 2003, pp. 14-17). It is correspondingly clear that huge proportions of trade union prospective members are of the opinion that they can better negotiate with their employers directly, instead of depending on a union appointed representative to act as an arbitrator in their problems, and thus also persist away from trade unions (Visser 2002, p. 403). Another feature linked to personalisation is that trade unions are now obligated to target separable prospective members with a service deals that are suitable to their particular needs (Addison and Schnabel 2003, pp. 367-368). The consequence is that the proposed deal must differ dependent on industrial locality, members’ profession and the individual features of the prospective member(s). Besides, trade unions that have diverse memberships must offer an assortment of deals to members, instead of offering an umbrella appeal to prospective members across industry lines (Waddington 2005b, pp. 2-3). External threats It is usual for external threats to be considered within deregulation, improved international competition and globalisation (Machin 2004, p. 423). These circumstances definitely set the scene, principally as trade unions continue to act chiefly inside national borders, but most significant in openly stimulating decline in trade union membership are: (1) rising unemployment whereby most trade unions offer comparatively limited facilities to their jobless members. The result is that most trade union members who lose their jobs withdraw their trade union memberships; (2) changing workforce configuration. Jobs are changing from industry, where union membership is highest, to the private sector, where union membership is lowers. Linked to this change is the increase in nonconforming employment forms, jobs at small workplaces and novel practises in workplace associations. Most trade unions are yet to accommodate these shifts with the result that they lose members at a greater frequency than they are recruiting new ones (Morissette, Schellenberg & Johnson 2005, pp. 6-7); and (3) employers. An increasing number of employers are battling trade unions than was experienced in the past. While this inclination is often connected to multinationals, there is growing proof of national and local companies interrogating the necessity of trade unions, chiefly in the countries where trade union membership has always been low (Lindsay 2003, p. 133). The collective bargaining coverage is decreasing in many countries. Efforts by companies to disperse collective bargaining have necessitated trade unions to create new co-ordination instruments, of which several of them have failed at, with the result that trade union members feel secluded from the trade union (Waddington 2005b, pp. 2-3). Internal threats A great number of opinions have been presented to point out that trade unions haven’t implemented the changes essential to conforming to both present and future situations. In broad expressions, these opinions submit that trade unions remain structured along past and obsolete models. There are matters of appearance to speak to and a necessity to persuade prospective members that they are pertinent to the changing workplace dynamics (Hirsch & Macpherson 2003, p. 349). The failure of trade unions to conform to current needs is better summarised as: their practices are too ‘old-fashioned’ and formal: thus, they prospective members, of whom a majority are the young, are put off from joining; they are led by middle-aged males; they are still perceived as predominantly male organization who offer representation for manual workers; they are inappropriate for membership by certain professions; and they are often perceived as being ‘out-of-touch’ with current realities in the workplace (Hirsch 2004, pp. 416-417; Waddington 2005b, pp. 3). Free riding ‘Free riding’ has also been identified as a major factor in the determination of trade unions membership recruitment. It is often the case that non-union members workers are also covered by the deals and agreements negotiated by trade unions. This transpires through enlargement and extension provisions both outside and inside the deals and agreements. Thus it is essential to examine trade union coverage rates to get a true elucidation of the extent of their sway and impact. Regrettably it is habitually exceptionally challenging to get precise data on trade union coverage as workers when questioned in researches are often unreliable, or give inaccurate information, about whether or not they are covered by trade union deals and agreements (Bryson 2006, p. 12; DiNardo & Lee 2004, p. 1383). Data from 2003 shows that only 8.3% of workers in France were trade union members, even though practically all of them were covered by trade union collective bargaining deals and agreements. Although some nations have lesser trade union membership proportions than union coverage proportions (Netherlands at 22% and 85% respectively, Finland at 74% and 95% respectively, Belgium at 55% and 90% respectively, Austria at 35 and 99% respectively, and Australia at 23% and 80%) none of them has a trade union membership density proportion of less than 20%. Bryson (2006, pp. 12-13) pointed out that ‘free riding’ was a pertinent issue. He approximates that 45% of employees in unionized places of work in New Zealand and 35% in Britain are not union members. The occurrence is particularly high among top level management in both countries (Bryson 2006, pp. 12-13). Conclusion It is evident from this essay that trade union membership is declining and becoming more varied due to alterations in workforce compositions. Besides, the two issues are often concurrent. In essence, trade unions must alter their operations to meet the growing workforce diversity at a time when resources are greatly diminished. The challenge for trade unions has thus been identified as declining membership figures. If the trade unions are to draw and put up additional assorted memberships they must represent workforces and unconventional small places of work, represent more workforces with greater job turnover rates, and address a broader assortment of employer opposition tactics (Charlwood 2002, pp. 463-464). Any prosperous tactic towards trade unions growth of membership must include actions to meet these needs; the issue of declining membership can’t be decided devoid of generating trade union plans and internal representation channels that meet the assorted workforce interests, and needs met, by prospective members, principally in the private sector; and the dispersed and expanded trade unions service delivery patterns joined with the focus of corporate power to strengthens the acute need for preserving or renewing relations between the diverse ranks at which they function (international, regional and local; Williams 2014, pp. 143-146). While the two identified tactics to growing trade union membership definitely vary, it is becoming progressively obvious that trade unions have to modify each tactic to meet prospective members’ needs and precise set of situations. A solitary entreaty to become a member in a trade union is not sufficient anymore, as diverse workers have dissimilar trade union needs and may wish to modify their involvement in different ways. In the long run, the ability of the trade union to have new members and maintain its membership base will not be dogged by the trade union reorganization efforts, but by its ability to become an influential and attractive collective organization that is proficient at reversing the declining trade union membership trends (de Beer 2013, pp. 131-132; Williams 2014, pp. 148-152). References Addison, J & Schnabel, C 2003, The International Handbook of Trade Unions, Edward Elgar Publishers, Cheltenham. Aidt, T & Tzannatos, Z 2002, Unions and Collective Bargaining. Economic Effects in a Global Environment, World Bank, Washington, DC. Blanchflower, D 2006, A Cross-Country Study of Union Membership, Institute for the Study of Labour, Bonn. Bryson, A 2006, Union Free-Riding in Britain and New Zealand, Centre for Economic Performance, Discussion Paper No 713, January 2006, London School of Economics, London. Charlwood, A 2002, Why do non-union employees want to unionize? Evidence from Britain, British Journal of Industrial Relations, vol. 40. no. 3, pp. 463-491. DiNardo, J & Lee, S 2004, Economic impacts of new unionization on private sector employers, Quarterly Journal of Economics, vol. 119, no. 4, pp. 1383-1441. Fernie, S & Metcalf, D 2005, Trade Unions, Resurgence or Demise, Routledge Publishers, Oxon. Flanagan, J 2005, Has management strangled U.S. unions?, Journal of Labour Research, vol. 26. no. 1, pp. 33-64. Freeman, B 2005, ‘What Do Unions Do? The 2004 M-Brane Stringtwister Edition’, Journal of Labour Research, vol. 26. no. 4, pp. 641-668. 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Visser, J 2006, Union membership statistics in 24 countries, Monthly Labour Review, January, pp. 38-49. Waddington, J 2005a, Restructuring Representation: The Merger Process and Trade Union Structural Development in Ten Countries, P.I.E.-Peter Lang, Brussels. Waddington, J 2005b, Trade Union membership in Europe: The extent of the problem and range of trade union responses, ETUI-REHS Research Department, Florence. Williams, S 2014, Introducing Employment Relations: A Critical Approach, 3rd ed., Oxford University Press, Oxford. Read More