The Communication Structure Between Trade Unions and Employers - Research Paper Example

UK Trade Union The decline of trade unionism in the UK which began in the late 1970s is a notable event in the history of labour in the country. Union membership has perhaps dwindled to just a mere one-third of its original size, whilst in the early 20th century, trade unions’ power led to the creation of one of the nation’s major political party, severely threatened national security, and buried the political career of a prominent political figure. Today, however, trade union activities are deemed the lowest since the last world war. Statistical data provide inkling to the underpinnings of the decline. These underpinnings include, among others, composition of union membership, business cycle, employers and the government, personal and job-related characteristic, industrial structure and union leadership. Notwithstanding, it is evident that the decline of UK trade unionism was, first and foremost, precipitated by the passage of anti-trade union legislations that began in the early 1980s and continued into the early 1990s. Background: UK Trade Unionism The rise of the industrial revolution in England in the 18th century gave birth to trade unionism. Industrial machines were invented as a result of the discovery of steam and people crowded cities to work in factories. England’s war with France in the late 18th century and into the early 19th century, however, hurt the economy and the conditions in the factories became bad. To protect themselves, factory workers organised into unions. This began the rise of trade unionism peaking into the “golden age” of labour unions in the 1840s. As England entered into the second phase of the Industrial Revolution, the country’s railroad system was completed, staple industries grew and it became the world’s industrial center. Several legislations were passed during this period which favored the workers and unions, among them The Trade Union Act, which finally recognised unions as legal entities (Davis). In 1918, union members numbered more than six million, bonding together to create the Labour Party. It was not until after the Second World War that the Labour Party became a power to reckon with when it took control of the Parliament through an overwhelming win (Erkine 2007, pp. 137-138). In the 1950s, manufacturing rose and the battle between manufacturers who wanted to thrive in the midst of a weakening economy and trade unionists who wanted better work terms emerged. The government, wary of the power of trade unions to hold massive strikes, gave in to the latter’s demands. This earned the trade unions public respect. In 1969, membership in trade unions reached ten millions rising to 13 million ten years later (Fisherman pp. 1-2). The Miners’ Strikes in 1972 and 1974 once again the immense breadth and depth of such power. During the first strike, which originated from a dispute in pay rates between the coal miners’ unions and the National Coal Board, the Conservative government of Edward Heath eventually folded up. In 1974, another of such strike devastated the government, ended Heath’s term and sent his political career into perpetual limbo. Margaret Thatcher eventually took over Heath’s post as Prime Minister and that was when trade unionism started to decline (Rojek 2003, p. 145). In 1984, when the miners staged a similar strike, Thatcher had the coal mines closed without backing down even when other miners joined in a sympathy strike. Faced with hunger, the miners were forced to go back to work under the government’s terms (Jeavans 2004). 1978 and Beyond: The Decline of UK Trade Unionism As earlier stated, the 1979 union membership stood at more than 13 million. Today, however, union membership registers at just 7 million, more or less, at density percentage at 30% from the 50% in 1979. This means a decrease of about 5.5 million in membership and a parallel decline in density membership, with density referring to the percentage of the workforce belonging to a trade union vis-à-vis the entire UK workforce (Gospel et al 2005, p. 2). Since Tony Blair became Prime Minister in 1977, union membership is steady at seven million, at a 70 60 50 40 30 20 % 1950 1960 1970 1980 1990 2000 year Fig. 1 Trade Union Density (Source: Machin 2000) density of 29%. Within the workforce, density varies by the kind of job, demographics and workplace characteristics, with little variation when it comes to gender or ethnic origin. Occupations held by professional workers like nurses and teachers have higher density (at 48 %) than those in occupations whose workers have lesser qualifications which is at 11 per cent. Density also rises with age and more pronouncedly with tenured jobs (Fernie et al 2005, p. 1). Figure 1 shows a comparative graph of union density in UK from the 1950s to 2000. Figure 2 shows membership of the Trade Union Congress from 1940-2000. TUC is an umbrella organization of many trade unions in UK (About the TUC). It is the biggest trade union in the UK and its history reflects a parallel decline in membership with trade unions since the 1980s (Schifferes 2004). Fig. 2 TUC Membership from 1940-2002 Source: TUC Between the public and private sectors, the former has a relatively higher density in union membership. In the private sector, a relatively high number of densities can be found in privatized facilities like transportation, communications and utilities. This number, however, remains low at 16%. Manufacturing which used to have the densest union membership in the past has now only 27 per cent. Between large and small establishments, the former has higher number of workers who are members of unions. As far as geographical location, those working in the north are, comparatively, more likely to join a union than those in the south (Fernie p.1). Two other changes in UK trade union are also evident: the number of trade unions itself and the communication structure between unions and employers. In the 20th century, there were as many as 1,300 unions, which decreased, a little, to around 800. In 2005, however, there were only 226 left with 11 of these accounting for a near three-fourths of the total membership. Furthermore, whilst unions used to speak for their members in negotiations with employers (representative voice), a different practice is presently being employed. Most employers now interact directly with their workers, totally bypassing unions. The popularity of this mechanism can be traced back to between 1984 and 1998, when half of the workplaces, which employed the representative voice, started to adopt the direct type of communication and the number of those who used the latter mechanism grew three times (Fernie p. 2). Other means of determining and proving changes in trade unionism is through union coverage and union recognition. Table 1 shows three kinds of sectoral changes in trade unionism: private sector manufacturing, private sector services and public sector services. As earlier discussed, between the private and public sectors, it is the latter which has a relatively higher union membership density. The table shows that although there was a decrease in union membership turnover in this sector from 1980 to 1998, the change is not as steep or as remarkable as that in the private sector. The private sector, both in manufacturing and services union memberships, were almost halved in the same period, with the private manufacturing sector registering the steepest decline. Furthermore, there is a marked decline of the number of establishments whose unions are allowed to collectively bargain with their employees as well as a parallel decline in the number of workers covered by a CBA (Machin 2000, p. 2). 1980 1984 1990 1998 A. Aggregate Changes Proportion of Establishments with Any .64 .66 .53 .42 Union Recognised For Collective Bargaining Purposes Proportion of Workers (Full-timers in .62 .58 .48 .36 1980, all in other years) Who Are Union Members Proportion of Workers Covered by - .71 .54 .41 Collective Bargaining B. Sectoral Changes Proportion of Establishments with Any .65 .56 .44 .30 Union Recognised For Collective Bargaining Purposes, Private Sector Manufacturing Proportion of Establishments with Any .41 .44 .36 .23 Union Recognised For Collective Bargaining Purposes, Private Sector Services Proportion of Establishments with Any .94 .99 .87 .87 Union Recognised For Collective Bargaining Purposes, Public Sector Services Table 1: Union Presence in Britain, 1980-1998 (source: Machin 2000) Both the age of the workers and the age of establishments likewise figure in union decline. With respect to workers, those in the age bracket of 18 to 29 had only 18 per cent of their number in the unions as of 1998 as opposed to 44% of the same age bracket in the early 1980s. The age of establishments presents a more instructive picture of union decline in the UK. Before 1980, 62% of establishments recognized unions but establishments created after 1980 shows only 33% recognizing trade unions (Machin 2000, p. 3). Also, the British Household Panel Surveys done in 1991, 1999 and 2001 showed that between the sexes, it is the male workers’ population which is decreasingly joining unions, especially in the white collar job sector (Chrysanthou pp. 20-21). Legislative Acts Pertinent to Trade Unionism After 1978 Between the successive terms of Prime Minister Thatcher and Prime Minister John Majors, there were at least six laws material to trade unionism that were passed: the 1980 Employment Act; the 1982 Employment Act; the 1984 Trade Union Act; the 1988 Employment Act; the 1990 Employment Act, and; the 1993 Trade Union Reforms and Employment Rights Act. The significant feature of the 1980 Employment Act is that it imposed liability for damages on strikers who bring in other strikers from outside the establishment and the blocking of non-unionised establishments, or their products (Addison & Sieber 2002). The 1982 Employment Act, on the other hand, narrowed the term ‘trade dispute’ to refer only to the terms and conditions of employment, outside of which trade unions will be liable for damages incurred. The 1984 Trade Union Act made secret balloting a requirement in most trade union activities for the purpose of reaching a consensus on any subsequent trade union activities, which must be made four weeks before the actual activity. Any decision not reached via this process is considered invalid. Another law, the 1988 Employment Act, is significant for the following reasons: it prohibited closed shops; it prohibited termination of employment for non-membership to unions; it prohibited unions for punishing members who refused to participate in a union action, and; it allowed union members to sue their unions for engaging in a non-sanctioned activity (Burden & Campbell 1985, pp.88-89). A follow-up prohibition on closed-shops and balloting requirements are provided in the subsequent legislation called the 1990 Employment Act. This law also gave the employers the right to sue their employees who engaged in unlawful union activities (Leat 2007, pp. 204-205). Finally, the 1993 Trade Union Reforms and Employment Rights Act provided for the following features: it allowed employers to give incentives to their employees for severing ties with their unions; it obliged unions a 7-day notice to their members before engaging in a union activity; it depowered the ACAS from promoting collective bargaining, and; allowed private citizens who are customers of an establishment to file an injunction against striking union members of that establishment (Kerr 2001, p. 185). Conclusion: An Analysis of the Underpinnings of the UK Trade Unionism Decline Bain and Price (1983) group the causes of trade union decline in UK into six: “composition of potential union membership; business cycle; employer policies and government action; personal and job-related characteristic; industrial structure and union leadership” (Bratton & Gold 2001, p. 348). It cannot be denied, however, that the ascension of Thatcher into power precipitated the spiraling of union decline from the 1980s to the present. The laws pertinent to trade unionism passed by the two successive administrations of Thatcher and Majors had successfully curbed enthusiasm over trade unionism. These laws did not only make unionising a difficult process, they also exposed unions and union activities to potential liabilities. The 1980, 1982 and the 1990 Acts, for example, subject unions to liabilities for damages in certain cases. Furthermore, engaging in unions activities were made doubly difficult and slow, taking the sting out of spontaneous emotional uproar against issues. The balloting, which are required in almost all significant union activities, made engaging in such activities almost frustrating because of the four-week requirement imposed. Balloting is “extremely complex, technical and in, parts, ambiguous, thus leaving unions vulnerable to potential challenge in the courts on several counts” (Addison 2002). Secondly, these laws do not only encourage employers but even union members to block union activities. Employers are free to bribe their employees to sever ties with their unions, whilst union members are encouraged to undermine their unions by allowing them to question their unsanctioned activities in court. Collectively, these laws have made trade unionism unattractive to potential members as opposed to the headline-hugging trade unions of the 1980s where trade unions wielded power over the government. The composition of potential union membership theory as a cause of union decline is anchored on the age of establishments and workers. Relatively newer establishments are small, with more younger and female employees than male and are in the private sector. As earlier discussed, post-1980 created establishments are not wont to recognise unionism. Research has also shown that younger people, especially women, are not apt to join unions. Machin and Blanden (2003) attribute this to “the transmission of membership across generations.” Thus, a father who is a union member will most likely affect his children’s decision to be in the union. Since there are fewer fathers who are in unions today, there are, therefore, less family members who join unions (Gennard 2005, pp. 162-163). Trade unionism decline is not a phenomenon solely found in UK. A similar transformation is happening in other capitalist countries as well. This is because of the marked shift in global industries from the core manufacturing industries to other types like services employment and greenfield manufacturing establishments, which are still un-unionised or are still in the process of unionising. In addition, a “new political culture,” which gives emphasis on individualisation in employment communication over collectivity, is becoming the trend. Thus, there is current preference by employees to deal directly with employers rather than through the union. Joining unions, in fact, have become less of an advantage today as compared to three decades ago (Danford et al 2003, pp. 1-2). The rise of trade unionism in England originated during the first industrial revolution, when the country went into war against France. The war had affected conditions in the factories and the workers organised themselves to fight the deteriorating working conditions. The advent of the present economic crisis could fuel resurgence in trade unionism in UK like what the worsening economy back in the late 18th century did. If news is any indication, many trade unions all over the globe had rallied against their respective worsening economies. In early 2009, eight of the largest trade unions in France staged a protest against proposed economic reforms by the government (Social Unrest Grips Europe as Global Recession Bites), whilst some 100,000 workers rallied in Ireland to protest high unemployment (Global Recession: Over 100,000 Demonstrate in Ireland). At home, hundreds trekked to the streets in Northern Ireland last November 6 to protest the inaction of politicians as the economy worsened due to the global recession (Trade Union Rally Hits Out at Northern Ireland’s Squabbling Politician). It would not be farfetched to anticipate that the present global economic recession would reinvigorate the workers’ interest in unionism which would then come full circle. References 29 January 2009, Social Unrest Grips Europe as Global Recession Bites. EurActiv.com. viewed 29, November, http://www.euractiv.com/en/socialeurope/social-unrest-grips-europe-global-recession-bites/article-178926. 22 February 2009, Global Recession: Over 100,000 Demonstrate in Ireland. Pakalertpress, viewed 26 November, 2009. http://pakalert.wordpress.com/2009/02/23/global-recession-over-100000-demonstrate-in-ireland/ 6 November 2009, Trade Union Rally Hits Out at Northern Ireland’s Squabbling Politician, Belfast Telegraph, viewed 30 November, 2009, http://www.belfasttelegraph.co.uk/news/local-national/trade-union-rally-hits-out-at-northern-irelands-squabbling-politicians-14555431.html. ‘About the TUC’, TUC, viewed 25 November, 2009, http://www.tuc.org.uk/the_tuc/index.cfm Addison, J & Sieber, W 2002, ‘Changes in Collective Bargaining in the UK’, Institute for the Study of Labor. IZA. Bratton, J & Gold, J 2001, Human Resource Management: Theory and Practice. Routledge, p. 348. Burden, T & Campbell, M 1985, Capitalism and Public Policy in the UK. Routledge, pp 88-89. Chrysanthou, G M 2008, ‘Determinants of Trade Union Membership in Great Britain During 1991-2003’, Department of Economics and Related Studies, viewed 26 November, 2009, http://e-archivo.uc3m.es/dspace/bitstream/10016/2615/1/we082315.pdfpp. pp. 3, 20-21 Danford, A & Richardson, M & Upchurch, M 2003, New Unions, New Workplaces: A Study of Union Resilience in the Restructured Workplace, Routledge, pp. 1-2. Davis, M ‘1815-1834’,. TUC History Online, viewed 28 November, 2009, http://www.unionhistory.info/timeline/1815_1834.php Erskine, Sir T 2007, The Constitutional History of England Since the Accession of George the Third 1860-1911 Vol 1ii. Read Books. Fernie, S & Metcalf, D 2005, Trade Unions: Resurgence or Demise? Routledge, pp. 1-2. Fishman, N 1951-1960’, TUC History Online, viewed 28, November, 2009, http://www.unionhistory.info/timeline/1945_1960_2.php, pp. 1-2. Gall, G 2003, Union Organizing: Campaigning for Trade Union Recognition. 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