Functions of Unions in Modern Australian Industrial Relations - Research Paper Example

Functions of Unions in Modern Australian Industrial Relations Introduction A main transformation in the organization and operations that strengthen industrial relations system in Australia appears to have taken place during the last few years. The tribunal-based systems of conciliate ion and mediation that have created labor-management associations since the spin of the century now play a less critical function, and the systems of honor that maintain to be administered by the assorted tribunals are less central to the fortitude of wages and stipulations. Possibly the most noteworthy change has been the change in the level at which bargaining occurred, from an almost elite focus on industry- and economy-wide contemplations ten years ago, in the direction of a hybrid system which puts much emphasis on the venture and workplace (Whitehill, 1998). The formal amendments in the formation of industrial relations have also been escorted by dramatic shifts in the organization and operation of trade unions (Hawke and Wooden, 1998, pp. 74-76). Trade union membership has dropped down from around 50 per cent of the labor force in the mid of 1970 to 31 per cent by 1996. Trade union formations have also altered. Ten years ago there were above 300 different trade unions, most of which were too small and occupational- or craft-based. Today, only some of these small craft-based unions still subsist. Union membership is now focused in a handful of huge industry and multi-industry unions. Declining Trade Union Membership Another demonstration of the varying nature of industrial relations arrangement in Australia has been the fall in the rate of trade union membership. The union members symbolized more than half the total labor force during the mid-1970s. Since then, the ratio has fallen by about nineteen percentage points (Bodman, 1996). Changing Trade Union Formation Trade union formation has also been put through vast change. To a certain extent in response to the turn down in membership, the trade union group has, vigorously followed a policy of incorporations and rationalization (Leigh, 2004, p.174). Australian Bureau of Statistics values specify that in 1970 there were 347 vigorous trade unions in Australia and by 1990 this figure was changed to 299. Over the succeeding six years, however, this figure fell dramatically and found to be only 132 at 30 June 1996. Moreover, only 46 of these unions were enrolled under the Federal Industrial Relations Reform Act. Union Reaction to Change All through this century the primary objective of trade unions has been quite straightforward, that is, to get improved remuneration and stipulations for its membership. In attaining this objective, the union movement arranges and found support in three major macroeconomic policies - centralized remuneration determination, protectionism and essential mediation, and the White Australia immigration policy - all of which assisted to protect the labor market from the vagaries of the market, and particularly foreign markets. By the end of the twentieth century, however, the union movement emerges to have identified that Australia can no more afford not to consider of itself as a fundamental part of the world economy. To do so will inexorably mean declining living standards corresponding to the rest of the world. This has been echoed in a vigilant shift in policy away from conventional 'laborism' towards what has turned out to be known as strategic unionism. The basic principle of strategic unionism is that unions must enlarge their focus and surpass a narrow focus on remuneration and stipulations. In addition, the constant struggle for employees’ rights and better working conditions must happen within a framework of collaboration, both with management and governments. Strategic unionism was therefore a vital concept fortifying the Accord. The Accord entailed a pledge from trade unions to work out wage constraint and not look for further wage increases exterior of those provided by national wage case decisions. In response, union members would gain from bump up in the 'social wage'. Whether the Accord can be arbitrated an economic victory has been the substance of debate, though the rising consensual agreements comes out to be that the Accord was successful in constraining real wage increase below what it would if not have been and so encouraging employment increase. Regardless of its economic success, there seems to be a rising consensus that the Accord process in reality weakened the long-term practicality and endurance of trade unions. Most apparently, the Accord made it much harder for individual unions to potential members and convinces members that union membership was essential to protect the benefits being conveyed by the Accord process. Within the structure of Accord, the rejoinder of the union movement to falling membership was not to change union vigor at the workplace, but to focus on uniting the organizational stand of trade unions. The need for less number of and larger unions was validated on two bases - economies of extent in the provision of services and the eradication of inter-union conflicts. The aim was to build a system of fabulous unions structured down extensive industry lines. Observance with this approach was helped out by legislative amends within the Federal organism throughout the late 1980s and near the beginning of 1990s which: successfully detached the condition that merging could not have effect without the sanction of 25 per cent of the connection; eliminated the constraint that members of a great union implicated in an incorporation had to be polled if attachment of that great union was over four times bigger than the other parties to the amalgamation (Callus, 1991); provided the Commission the control to confer special treatment to a solo union when deciding delineation clashes; enlarged the smallest size limit obligatory for unions to keep up chronicling to initial 1000 members and then 10, 000 affiliates and made monetary backing accessible to unions be determined to integrate (Deery, 1990, pp. 5-17). Conclusion From the viewpoint of trade unions, the incorporation approach can now be reviewed as having unsuccessful. The down sliding in trade union membership rates sustained and, certainly, there is proof that the incorporation process may have add to hastening in that slide (Lewis, 2003, p.187). Numerous unions focused on increasing number of members by riveting other smaller unions. It would emerge that the unification campaign has still so far to understand that branching the flow of personnel out of the union association will entail unions healthier servicing their membership. The intervening concern with both macroeconomic strategy and top-down federal schemes to fortitude of wages and trade circumstances that was trait of the Accord years remains a key component of the current Australian Council of Trade Unions (ACTU) proposal. Regardless of the catastrophe in union membership, the performance of Australian trade unions would come out not to have changed to a great extent. Bibliography Bodman, P.M. (1996), “Explaining the Decline in Australian Trade Union Membership”, paper presented to the Australian Conference of Economists, ANU, Canberra. Callus, R., Morehead, A. (1991), Industrial Relations at Work: the Australian Workplace Industrial Relations Survey, AGPS, Canberra, ACT. Deery, S. (1990), "Productivity, organizational change and the management of employee relations", Asia Pacific HRM, Vo1.28, No. 3, pp. 5-17. Hawke, A. and Wooden, M. (1998), “The Changing Face of Australian Industrial Relations: A Survey”, Economic Society of Australia, Vol. 74, pp. 74-76. Leigh, A, 2004, `Minimum Wages and Employment: Reply', The Australian Economic Review, Vol. 37, No. 2, at pp. 173-9. Lewis, P, 2003, `Disequilibrium in the Australian Aggregate Labor Market', Economics Letters, Vol. 11 at pp. 185-9. Whitehill, Arthur M. (1998), “The Other Worker: a Comparative Study of Industrial Relations in Australia”, East-West Center Press. Read More