Trade Unions Changing Role in the Next 10 Years in the United Kingdom - Assignment Example

Trade union’s changing role in the next 10 years in the United Kingdom Introduction Trade union movements in the United Kingdom are facing difficult challenges. The many challenges that union leaders are confronted with are hard and critical organizational challenges. These problems include frequent changes in the economy and structure of the society that lead to erosion of membership, difficulty in organizing unions that is brought by unfavorable and constantly changing political and institutional situations and the lack initiative to incorporate new social groupings and members into the unions (Hyman 2001, p.54). Both the academic world and the unions themselves have recognised the changing face of unions and have acknowledged it as a problem that threatens to decrease the importance of these unions in both academic and political administrations (Hyman 2001, p. 56). However, there is a direct and in-depth relationship between union movements and welfare states. This is because unions were the basis in the formation of these welfare states. Consequently, these unions are rooted in the welfare states and a shift in the operations of welfare states would bring dire consequences to unions. Unions are very dependent on welfare states in many ways. They gain more resources and income in cases of low member enrollment and little financial contributions due to the small number of members (Ebbinghaus and Visser, 2000, p.67). In case of weak bargaining power emanating from low numbers, the unions draw strength from welfare states that comprise of many organizations that have better and stronger bargaining power (Ebbinghaus and Visser, 2000, p.67). In addition, unions benefit through provision of ‘union securities’ by welfare states in all aspects of their operations. This may be in the form of associations in the public sector or subsidies on insurance schemes provided by unions to members (Ebbinghaus and Visser, 2000, p.69). In recent times, some unions have successfully prevented efforts to reform them while in others, union leaders are willing to consider the integration of unions to abide by the labour market policies that are in line with domestic and current international challenges. Since 1980, there have been calls for decentralization, a change in the way labour markets are regulated and provision of more flexible production methods. These are some of the core challenges of industrial relations in the UK. All along, there have been attempts to moderate employee wages by organizations as a strategy to counter pressures that come from competition and as a way of cutting on the budget (Scruggs and Lange, 2002, p.56). In most countries, the government has delegated the role of ensuring proper treatment of employees by organizations to welfare states that encompass union movements. As countries integrated and formed single blocks, intensified pressure on the role of welfare states led to expansion of welfare roles to cover employment issues and other critical issues of social concern such as employees’ pension plans (Scruggs and Lange ,2002,p.67)). The role of unions has changed over the years and there is a threat to more change that may lead to weaker powers by the union movements. Scope of the report This report will concentrate on the changing role of union movements at present and that is expected to continue in the next ten years. It will also present strategies that UNITE trade union could use to facilitate the interests its members. This will include important changes in the social policy sector, and the changing face of institutions based on problems faced by members and reforms of members’ unions and associations formed by employees. The first part discusses problems faced by members and the representation of unions at the national level. Based on the argument that unions are highly dependent on welfare states, comparisons made that will center their focus on the unemployed, workers of advanced age, public employees and women. The second part will present current changes in trade unions and employees’ associations. This will include the current decline in representation, changes in the organization of unions and the development of mixed feelings concerning social partnerships. The third part will present several proposed strategies that will counter these changes and guarantee the success of UNITE trade union in fulfilling the interests of its members. Part 1 Support by state welfares and membership erosion In recent times, unions have experienced a low number of members that register with them and this trend is expected to intensify in the next 10 years. Since the dawn of the 1980’s, the number of union members decreased in most countries in Europe.Deunionisation was common and widespread in most countries outside Europe (Fajertag and Pochet, 2000, p.69). People who advocated for a European model of organization insist the employment regulation strategies are a characteristic of the still strong European union. However, they fail to put into consideration the threat inherent to the sustainability of the European Union. The inability to register new members and consequent decrease in its potential poses a big threat to unions in the UK. This problem should be addressed quickly and appropriately if union movements have to survive and remain valid in future. If these problems are not addressed, then unions may become obsolete in the next ten year because their strength and power lie in the number of members and the state of their organization. A decrease in members’ registration will consequently result in a decrease in the strength of unions and this may lead to their abolishment. Socio-economic changes that occur over a long period make collective organization a difficult thing to implement (Fajertag and Pochet, 2000, p.99). These socio-economic changes have resulted from the establishment and growth of the private sector, self and part-time forms of employment and development of employment opportunities that do not necessitate the need for unions. Another factor that is contributing to extinction of unions though in an indirect manner is globalization. Increased trade and widespread investments contribute minimally to extinction of unions. However, their impact is minimal and there is still hope for stronger and more effective unions. Hope for a better future can also be drawn from the success of union movements in other countries outside Europe such as the USA and Belgium. Unions in these countries are very successful despite the challenges they face that try to pull them down. These threats pose the most danger to unions in UK because unemployment insurance that are led by unions are not working to make unions stronger and the improved conditions in the labour market have not yet provided hope for better and stronger unions. Unemployment problem Unemployment is another major problem experienced in many welfare states in the UK. In addition, it has amplified the low membership problem facing unions in the UK. This has reduced the bargaining power that gives unions strength to fight for the rights of members. A study conducted in the 1970 predicted the impact of unemployment on the state of unions because of decreased enrollment for membership (Ebbinghaus and Visser, 2000, p.87). Unemployment has severe consequences on unions. Upon retrenchment or loss of a job, a member immediately leaves the union because it does not serve its purpose to his situation any more. In addition, due to uncertainty of employment, recruiting and sustaining registered members is very difficult (Ebbinghaus and Visser, 2000, p.93). Most members opt out because of the widespread job insecurity. However, in some places like Belgium, unemployment has been shown to increase membership in several instances. Therefore, unemployment is not solely responsible for the decline in membership though its contribution is large. This is a major problem that UNITE union has to deal with in order to guarantee its success and validity in the next 10 years. Unemployment presents a two sided challenge and problem to unions. First, there is decreased membership because unions are most favourable to employed people. Secondly, there is reduced financing due to low contributions from the low number of members (Ebbinghaus and Visser, 2000, p.101). Financing is one aspect of the organisation of a union that gives it strength and power. Low membership means inadequate financing and this leads to inefficient services rendered by the union. Uncertainties in the public sector Due to current unemployment in the public sector, many people are shifting to the private sector for self-employment and other opportunities that guarantee sustainability (Ebbinghaus and Visser, 2000, p.77). This has further eliminated the need for unions that are popular in the private sector and associated with some people who shift employment sectors. Unions are in great danger of destruction because the public sector is highly uncertain in its future. There are possible cuts in financing to the public sector and possible privatization .However, some aspects serve to give hope for a better future for unionisation. In the UK, unemployment is less of a problem in the public sector and the sector recognises unions. In the private sector, unions are stronger and widespread among different fields. For example, the labour Force Survey showed that unionization was present and three times stronger in the public sector compared to the private sector. Failure to initiate reforms in the public sector has contributed to the observed downward trend of unionisation in the UK. Governments have been reluctant to effect reforms because they mean higher financing and higher pay for employees. Most governments want to maintain the current situation and as such, care little about the status of union movements. This is because implementing reforms would strengthen unions and that would consequently present hurdles in its leadership and management of employees. Women and young people presentation in the union The participation and inclusion of women and young people in unions has been lacking for a long time. Women have not been fully involved in the activities of unions and participate mostly from the sidelines. In most places, women are less likely to be working and therefore less likely to join unions. In most parts of the UK, participation of women in unions is lower than in other parts of the world. Further, in other places there are issues of differences in pay between men and women. This disparity has acted as a contributing factor in the minimal participation of women in unions. A recent survey revealed that the future of unions is bleak because of failure to involve young people in unions. Full involvement of women and young people is imperative as a strategy to revive and strengthen unions. Part 2 Organizational challenges Motivated by financial constraints because of low membership and economic changes, many unions have entered into mergers (Fajertag and Pochet, 2000, p.62). This was in an effort to sustain the running of their union operations.However, these mergers shifted powers from the unions to the central organization formed by the merging unions. This did not serve the needs of individual members well Even though mergers form stronger bargaining power, entering into one should be well thought-out and evaluated decision. The welfare of the members should be considered first before entering into any agreement. Union recognition and employer organization Unions should put into consideration the strengths and weakness of their opponents in terms of organization. Some factors determine the effectiveness of employers in relation to success of unions. First, their organization model determines the effectiveness of their bargaining power .Secondly, the organization model of employers determines how well employers execute their bargaining power. Thirdly, the provisions of the workplace policies concerning joining unions also pose serious challenges (Fajertag and Pochet, 2000, p.159). Employers also merge to form unions. These unions have been faced with the membership problem in recent times. This problem also affects trade unions because it reduces the all-inclusive bargaining power. In places where there are few or limited employers’ unions, coverage is very low. This means that involvement of employees in unions depends on whether employers recognise trade unions or not. Changing role of unions In recent times, trade unions have become actively involved in the implementation of social policies in many organizations. This has resulted from demand of private pensions. Through this involvement, trade unions seek to strengthen their role and take part in state initiated privatization. In addition, there has been development of mixed feeling about forming social associations. Many trade unions are afraid of losing their full control and running of their trade union. Part 3 Potential strategies In order for UNITE trade union to remain strong and facilitate the provision of better services to members by serving their interests, several strategies are proposed for impolementation.These strategies are meant to revert the recent trend in decrease in membership and bargaining power of trade unions. These strategies are aimed at addressing the above-discussed problems that are responsible for the trend that may continue for the next ten years if not addressed. Some of the strategies are discussed below. Union mergers UNITE trade union can form mergers with other unions that have similar objectives and goals. This strategy is important because with the recent decline in membership, great numbers may arise from entering into appropriate mergers (Fajertag and Pochet, 2000, p.89). The main objective of forming a merger is to increase the number of members in the union to increase its power and strength thus increasing its efficiency. Since it has a stronger member base in the private sector, UNITE can seek a strong union operating in the private sector and form a merger to improve its 200,000 membership. It can form a merger with either UNISON or GMB. For example, UNISON is the second largest union with a membership of 1,374,500.If the two formed a merger, then they would have a membership of 2,849,100.UNITE has a membership of 1,474,500 and is the largest in the UK (Fajertag and Pochet, 2000, p.203).A second possible merger would be with the third largest union, GMB.It has a membership of 601,730 (Fajertag and Pochet, 2000, p.204). Merged together they would have a collective membership of 2,076,330.A merger between UNITE and UNISON would be a strong one because they represent 46% of all employees in unions allied to TUC. A much stronger union would result from the merger of the three because they account for 56% of members in unions associated with UTC (Fajertag and Pochet, 2000, p.207). Active involvement of women and young people Involving more women and young people in trade unions would be a very good strategy for UNITE to use to sustain its influence and increase its strength (Frege and Kelly, 2004, p.74). In most unions, women are given passive roles that does not involve much involvement and running of the union. Such management roles and positions are given to men. UNITE can improve its operations by ensuring gender equity and equality in executing the activities of the trade union. This would be structured in a way that managerial positions available are distributed equally between the two genders. Women make up close to 24% of all members of trade unions allied to TUC. This percentage is big considering that women have minimal participation in the unions. This would be implemented by first giving women more roles in the running of trade unions and then conducting enrollment drives for more members (Frege and Kelly, 2004, p.84). This would involve use of training forums that would educate them on the importance of joining a trade union and the benefits that are inherent. To reduce costs, this would be conducted through online forums and through the media. Media education would include the print media and broadcast media. Rooting for the public sector reforms The public sector reforms strategy is an important one because the public sector employs many people who are potential members of trade unions (Frege and Kelly, 2004, p.93). Reforms in the public sector would involve provision of better work environment for workers and better pay. This would motivate the employees to join the trade union. This would result from the credit that UNITE would receive after pushing the government to execute reforms in the public sector. Members would definitely want better pay and better working conditions in the workplace. The implementation of this strategy would involve liaison with politicians and the public to help in pushing for the drafting and execution of public sector reforms. In addition, educating the public and employees on the need for reforms in the public sector would also be important. Conclusion Trade unions have been facing difficult challenges for a long time now. The major challenge has been the declined number of membership enrolments that have made trade unions less influential and rendered them almost ineffective in serving the interests of the members. Other challenges include the difficulty experienced in organizing unions due to the always-changing economic and social situations and unwillingness by the unions to incorporate members from different social and economic backgrounds (Hyman 2001, p.54). Both the academic world and the unions themselves have recognised the changing face of unions and has been acknowledged as a problem that threatens to decrease the importance of these unions in both academic and political administrations. However, there is a direct and in-depth relationship between union movements and welfare states. This is because unions were the basis in formation of thee welfare stares (Ebbinghaus and Visser, 2000, p.67). Consequently, these unions are rooted in the welfare states and a shift in the operations of the welfare states would bring dire consequences to unions. Unions rely on welfare states in different ways and continued and extensive association could present a couple of benefits. They could gain more resources and income in periods when they experience low member enrollment that results in low financial contributions. In case of weak bargaining power because of low numbers of members, the unions could draw strength from welfare states that comprise of many organizations that have better and stronger bargaining power (Fajertag and Pochet, 2000, p.75). In addition, unions may benefit through provision of ‘union securities’ by welfare states. This may be in the form of associations in the public sector or subsidies on insurance schemes that they provide to their members. In recent times, some unions have successfully prevented efforts by organizations to reform them while in others, union leaders are willing to consider the reform of unions to abide by the labour market policies that are in line with domestic and current international challenges. References Ebbinghaus, B., & Visser, J 2000. Trade Unions in Western Europe Since 1945. London: Macmillan. Fajertag, G., & Pochet, P 2000. Social Pacts in Europe: New Dynamics Brussels: ETUI. Frege, C., & Kelly, E. 2004. Varieties of Unionism: Strategies for Union Revitalization in a Globalizing Economy. Oxford: Oxford University Press. Hyman, R.2001 Understanding European Trade Unionism. London: Sage Publishers. Scruggs, L. & P. Lange 2002.Where Have All the Members Gone? Globalization, Institutions and Union Density. Journal of Occupational Psychology, 64, 1, 126- 53. Read More