Contemporary Employment Relations - The Role of the Trade Unions in the 21st Century - Essay Example

Introduction Given the rapid pace of change in the highly complex and dynamic global business environment in the 21st century, the need for organizations to respond to pressures of competition in that hostile business climate, and decentralization of the decision-making coupled with increased involvement of employees in crucial operational decisions, the role of trade unionism has increasingly waned. More so, implied hostility towards trade unionism has led to the general feeling that perhaps collective bargaining was never as widespread or as effective as pro-unionism claims content; nonetheless, the proponents of trade unionism content that union-based partnerships are still relevant even in the new market structures of the 21st century. In that case, the question of whether or not trade unionism remains relevant at the current workplace and in the wider employment relations concerns is such a fundamental one, in the process of defining the new framework of employment relations. This paper examines the validity of the views that the role of the trade union rests pertinent both at the workstation and for extensive employment coontext in the 21st century, with the hope of helping to define the new employment relations. The position of this paper is that in view of the shifting nature of the workplace environment and employment relationship concerns in the 21st century, trade unions can only remain relevant if they evolve to contribute positively to both managers and employee value (Institute of Personnel and Development 1997, p.11). Background of trade unions Since time immemorial, trade unions have been at the forefront of struggles for greater social justice and representation not only in societies, but also at the workplace (Belchem 2001, p.119); conventionally, trade unions have occasionally locked horns with organizations and other institutions that have been opposed to them in the past. Trade unions have often been accused of being illogical and ignorant of shifting economic dynamics in their demands while history records that the same trade unions have often been on the right in most battles they ever fought in the past. Organizations have always had so much power to the extent of undermining the welfare of their workforce in pursuit of profits thereby infuriating trade unions, which have always played a central role of collective bargain for worker rights and better working conditions. Some of the seminal achievements that the battles of trade unions in history have yielded for workers all over the world include but are not limited to the right to industrial action, minimum wages, 8-hour working days, paid vacations, as well as social security. Evidently, there is no doubt that employment relations in the 21st century have lost a great deal of their 20th century features including the strong trade union movements, collective bargaining, and national agreements accordingly (Devinatz 2013, p.5). Surveys show that union representation and membership as well as the scope of bargaining, particularly in the private sector, has declined gradually over the past three decades with union officials mostly campaigning for individual grievances rather than for collective pay and working conditions. Generally, the progressive decline in the influence of trade unions due to the decline in membership is one of the most intriguing shifts in the governance of employment relationships in the 21st century yet it remains to be a complex phenomenon is hard to explain. Explanations for declining trade unionism The gradual decline of trade unions can be attributed to myriad of interrelated trends in the highly complex and dynamic global business environment of the 21st century (Ostry 2001, p.257); firstly, the resultant product market competition has reduced incentives for trade unions as employers strengthen control over employment thereby diminishing the influence of unions accordingly. The disappearance of the wage premium of unionism, which provided an incentive for workers to belong in unions, and the massive occupational shift from the heavily unionized manufacturing sector to the emerging creative and cultural industries that have no tradition of unions, have largely contributed to decline of unionism (Overell et al. 2010, p.48). Additionally, unions have been unable to organize the emerging workplaces leading to an exponential increase in proportion of employees without any experience of trade unionism, hence cannot understand them as outsiders (Trade unionism 2003, p.1). Low trade unionism in the private sector can be linked to the stringent labor market conditions, anti-union sentiment, as well as doubt of its benefits, among other factors; furthermore, legal changes since the 1980’s have constrained union security thereby weakening the strike threat. Currently, the prevailing laws not only permit the suing of trade unions, but also demand the issuance of notices by the unions before strikes, and bar unofficial action, thereby raising costs of organizing while making it easier for enterprises to resist unions (Overell et al. 2010, p.48). State of trade unionism today Generally, both the public policy and macro-economic environments in the UK have been friendly towards trade unions since 1997 through to 2008 during the financial crisis; even so, not so many people have felt inclined to participate in trade unionism at the workplaces (Overell et al. 2010, p.4). Up until 2004, a majority of employers expressed neutral and agreeable attitudes towards the presence of trade unionism in their organizations and only a few were opposed to them; however, even though formal de-recognition of trade unionism at the workplace is not obvious, managers remain unconvinced about the validity of the productivity argument for trade unionism. Presently, subtle and implicit de-recognition of trade unionism is more common in many enterprises, thereby implying that trade unions have lost not only the support of governments and managers, but also the support of a majority of their members (Fitzgerald & OBrien 2005, p.17). In addition to that, a significant majority of businesses in the 21st century have been de-collectivized thereby reducing the need for trade unionism; the more friendly employment relations coupled with increasing employment rights in the 21st century has further contributed to the decline of trade unionism. Relevance of trade unionism in the 21st century The gradual decline of trade union membership throughout the 1990s with only about 6.9 million employees belonging to unions today puts the future of trade unionism both at the workplace environment as well as in the wider employment relations concerns in the 21st century in profound jeopardy. Presently, trade unionism is only visible in managerial as well as professional occupations rather than in less skilled blue-collar and clerical jobs; sadly, even if statutory provisions for trade unionism or employee representation was to be reinforced, the downwards trend of trade unionism would not be altered significantly. Shockingly, out of all the employees in the world, only about 8 million (nearly 37%) of them are covered for by the collective bargaining of trade unionism, and in the private sectors particularly, the proportion of employees hardly exceeds 7%. The popular trends at the global workplaces today—the shift towards individual-based performance and commission-based pay, has greatly diminished the need for formal pay structures, thus, trade unions no longer have the powerful influence on actual pay and the workplace conditions as they did in the 20th century. At this point in our discussion, there is no doubt that even though the trade unions enjoyed so many vital opportunities to negotiate for comprehensive changes not only at the workplace but also in the wider employment relations concerns in the 20th century, those opportunities are greatly diminished in the 21st century. In that respect, the role of trade unions in the contemporary employment relations, unlike in the past, is highly precarious, particularly given that trade unionism has lost membership due to the prevailing workplace dynamics shaping organizational practice in the 21st century. In other words, trade unionism cannot continue to assert its influence both at the workplace and in the large employment relations concerns as it did in the 20th century due to a number of key factors that have completely altered business dynamics in the present day. The contemporary global business environment is rapidly shifting and even organizations themselves are increasingly finding it difficult to keep up with the pace of change; for instance, new technologies are emerging day and night thereby greatly revolutionizing business industries and realigning market dimensions accordingly. Consequently, the highly complex and dynamic global business environment, as a result to globalization forces, has increased enterprise competition and corporations are now facing an impending risk of extinction or business losses due to the numerous uncertainties in the product market environment that often result to fatalistic eventualities (“Future work” 2000, p.31). In that respect, organizations must constantly reposition themselves in the global business environment by aligning themselves to change in form of industry trends in general or business trends in particular, not only for profitability, but also for survival in the long term. Moreover, management practice in the 21st century has gradually shifted from dictatorship towards the decentralization of decision-making, with employees increasingly playing active roles at the workplace and contributing greatly to the major operational decisions arrived at by management. The rapid pace of change in the highly complex and dynamic global business environment in the 21st century coupled with the need for organizations to respond to pressures of competition in that hostile business climate have undermined the previous workplace bargaining between organizations and trade unions remarkably. Similarly, the decentralization of the decision-making process, as well as the increased involvement of employees in the making of crucial operational decisions that inform organizational strategy has contributed greatly to the reduction in the need for trade unionism accordingly. In light of these new developments, it is clear that collective bargaining is fast losing meaning, if it has not already, not only at the workplace, but also in the large employee relations concerns in the 21st century, which explains the continuously thinning membership of trade unions in the world today. Nonetheless, it is highly improbable that the future of employment holds any promises for collective bargaining as the main channel of mediating conflicts between employees and their employers; contrariwise, the relevance of collective bargaining continues to diminish in many organizations where it is still in practice as the century advances. Redefining trade unions in the 21st century In view of the shifting nature of the workplace environment and employment relationship concerns in the 21st century, trade unions can only remain relevant if they can shift their focus (“NewsRx 2009, p.261). Already there is considerable evidence that trade unions are taking up new roles or rediscovering their old ones in the new global business order (Devinatz 2008, p.269). For instance, rather than fighting for better pay and working conditions at the workplace, trade unions are today are better off focusing on providing a range of services and benefits in order to appeal to new members and to retain their present ones. Increasingly, many forward-oriented trade unions are fighting back the present decline in trade unionism by offering services beyond the conventional representation and opposition to management to retain their members while attracting new ones. These trade unions are aiming to provide their members with extra benefits in service areas such as insurance, banking, as well as financial services; additionally, other trade unions are helping their members to find jobs through the establishment of employment registers or agencies. Information and advice to members is also emerging as a more lucrative service that trade unions are offering to their members today; for instance, information and advice regarding pension rights is very helpful for employees. The relevance of trade unions when examined from the perspective of new roles is not lost after all; in other words, trade unions can still rebrand themselves by identifying new roles in the 21st century to remain relevant while retaining their members and attracting new ones respectively (Gall 1998, p.149). By taking up new roles beyond the their conventional ones, trade unions will most definitely remain relevant and continue to offer services that are crucial to their members; nonetheless, trade unions will still continue to represent their members in cases of individual grievances as well as disciplinary procedures. Similarly, trade unions still have a role in representing their members in claims under employment protection, as well as health and safety legislation in the event of workplace accidents; additionally, trade unions could also explore marketing their services to managers as consultants on training and employee-related matters for them to remain relevant in the 21st century. The future of trade Unions The future of trade unions, when examined from the perspective of new roles, does not look so bleak after all; trade unions can still recapture their earlier support from society and as these friendly attitudes towards unionism grow, there will be more interaction between unions and enterprises as before. Evidently, several emerging issues promise to provide new opportunities for the engagement or interaction between trade unions and enterprises in the future (Stirling 2005, p.43); fairness, productivity, as well as investment are reemerging as relevant themes especially in public service, and unions are in a better position to contribute to the discussions going on (Devinatz 2011, p.16). Due to the competitiveness of the market situations the world over, the government, employers, and trade unions have a new opportunity to continue interactions on the development of new employment relations in the future (“Trade unions…” 1997 p.431). It is more likely that trade unions still have something to offer in terms of contributing to the fostering of confidence in workplaces that have constructive relations, hence offering the fundamental framework for rapid adoption of the appropriate change (Serrano, Xhafa and Fichter 2011, p.28). Without doubt, trade unions will remain relevant in the future if they evolve by realigning themselves to new trends to contribute positively to both managers and employees value; there are indeed clear signs that trade unions have a clear intent and wish to shift the direction of unionism from opposition at the workplace and in the wider employment relations concerns. Conclusion Ultimately, in view of the shifting nature of the workplace environment and employment relationship concerns in the 21st century, trade unions can only remain relevant if they evolve to contribute positively to managers and employment relations and not if they continue in their conventional direction of opposing management and enterprise decisions. Otherwise, the rapid pace of change in the highly complex and dynamic global business environment in the 21st century, the need for organizations to respond to pressures of competition in that hostile business climate, as well as decentralization of decision-making coupled with increased involvement of employees in crucial operational decisions undermine trade unionism at the workplace. Nonetheless, due to the competitiveness of the market situations the world over, the government, employers, and trade unions have a new opportunity to continue interactions on the development of new employment relations in the future. Increasingly, many forward-oriented trade unions are fighting back the present decline in trade unionism by offering services beyond the conventional representation and opposition to management to retain their members while attracting new ones. 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