Trade Union Decline - Essay Example

Trade Union Decline Table of Contents Introduction 3 Discussion 3 What are trade unions? 3 Evaluate the functions performed by the trade unions? 4 What increased the demand of trade unions before 1980? 6 Evaluate the reasons that resulted in decline of the trade union density in many countries 7 Analysis 10 Conclusion 11 References 12 Introduction In this age of globalization and industrialisation, the rate of competition increased in various small and multinational organizations, operating in various segments (Sims, 2002, pp. 712-734). As a result of which, it offered an adverse effect on trade union density that lowered its popularity and dominance in the market. Other than this, the macroeconomic policies and strategies implemented so as to promulgate the rate of globalization, also acted as another cause that reduced the demand and reputation of trade unions in various organizations. However, due to the implementation of varied types of macroeconomic policies, the rate of productivity and performance of the employees enhanced but it decreased the power of trade unions in these organizations. Due to which, the density of trade unions as well as the power of the members of the unions reduced that offered negative impacts over the productivity and brand value of the organization in the market among others. Other than this, as the rate of private sector organizations are increasing rather than manufacturing sectors, the demand for trade or labour unions is decreasing in varied countries such as United States, United Kingdom, and European Union etc. Due to which, over last 25 years, the demand of trade unions is decreasing at a rapid rate (Visser, 2002, pp. 734-745). This essay mainly highlights the causes for the decline of the trade union density in numerous countries since 1980. Discussion What are trade unions? Trade union is recognised as an association of a wide range of wage-earned members in order to amplify the working conditions and living standard of the employees of the organization. Other than this, the trade union is considered as the association that works for the welfare of the employees so as to amplify their dominance and position in the organization as compared to management. Moreover, it also tries to fulfil all sorts of desires such as pension, medical allowance, incentives, and bonuses of the workers so as to motivate them towards the assigned tasks that may improve the overall productivity of the organization. However, the demand of trade unions is decreasing as the amount of private sector organizations such as catering, IT organizations etc is increasing at a rapid pace as compared to manufacturing organizations. Evaluate the functions performed by the trade unions? The trade unions act as a catalyst for the workers operating in different organizations. This is mainly because; it works always in favour of the employees by highlighting their needs and requirements (Snell & Bohlander, 2010, pp. 812-823). Trade union members communicate with all the employees of the organization so as to analyse their requirements such as pensions, raise of wage, bonus, machinery condition, lack of proper training facilities, lack of proper coordination among the management team etc (Simms & Charlwood, 2010, pp. 125-148). By knowing all the demands, the trade union clarifies them in front of the management team so as to fulfil the demands of the workers. Other than this, trade union members also negotiates with the management personnel at times of improvement of the wage rates, hiring of new employees, implementation of new machineries, handling grievances etc. This is done in order to motivate the employees towards the union and also to improve the control over the management of the organization. In addition, trade unions also help to encourage the workers towards their assigned tasks thereby amplifying their performance and commitment. Therefore, it is the trade unions that help the employees or the human resources of the organization to work freely without any sort of mental harassment (Swart & et. al. 2012, pp. 213-234). Furthermore, trade unions help in fulfilment of both the primary and secondary rights of the employees or human resources of the organization that amplifies their productivity and motivation (Gumbrell-McCormick & Hyman, 2013, pp. 214-234). Hence, due to these above mentioned causes, the demand of trade unions is extremely high in varied organizations, prior 1980. But after 1980, its craze and power is decreasing at a significant rate in numerous countries as presented by the below graph: What increased the demand of trade unions before 1980? (Source: Swart & et. al. 2012) From the above mentioned figure, it might be clearly analysed, that the labour market scenario, prior 1980, is extremely competitive. This is mainly due to the presence of unemployment. Due to lack of jobs, the workers or employees try to get employment in very small amount of wage so as to earn their living (Hamann & Kelly, 2008, pp. 190-212). In addition to low wage rates, the management of the manufacturing firm tries to make them work for long lasting hours, without offering them incentives or extra wages. Moreover, the management of the organization failed to implement varied types of inventive machineries and tools. As a result, the working condition is extremely worse and that increased the rate of attritions within these organizations. However, in order to resolve all these causes, numerous employees or workers joined trade unions (Hyman, 2001, pp. 612-623). Therefore, due to the interferences of the trade unions, the rate of employment as well as the wages of the workers increased, that amplified their living standard as presented below: (Source: Simms & Charlwood, 2010) However, as time passed, the craze for private sector organizations increased and the rate of wages also became quite standardised. So, the popularity of trade unions declined significantly. Evaluate the reasons that resulted in decline of the trade union density in many countries In this age of globalization, the power and dominance of trade unions in various countries such as United States, United Kingdom and EU are decreasing. The causes that are responsible for the decline of the trade unions, since 1980’s are presented below: Workforce composition: in previous age, membership of a union mainly composes of male workers. However, after 1980’s, both male as well as female members joined the organizations in order to earn their livings. As a result of which, the rate of density of members in trade unions reduced significantly since 1980’s (Cockburn, 1988, pp. 29-42). Workers attitudes: now a day’s, the attitude of the workers differs largely as compared to previous era. Now, most of them desire to communicate with the management of the organization by their own-self so as to resolve his or her problem. As a result of which, the influence and power of trade unions is reducing in current days (DBIS 2013, pp. 423-434). Labour market conditions: in this age, the rate of unemployment is decreasing significantly in varied regions such as UK, EU etc. This is mainly due to improvement of the share of wages of the employees or workers of the organizations. As a result, it acted pessimistically that declined the demand of trade unions or the density of trade union members (Ebbinghaus & et. al. 2011, pp.107-124). Product markets: due to improvement of the competitiveness as well as bargaining power of the customers, the organizations operating in this age are forced to offer good wages to its employees (Kersley & et. al. 2006, pp. 423-444). Otherwise, due to low wage, the rate of satisfaction and inner morale of the employees might get reduced that may offer significant impact over the performance and productivity of the organization. Furthermore, due to low wage, the workers might get dissatisfied with the management and may switch-over to other organizations. As a result, the organization might get failed to offer inventive products so as to satisfy the changing demands. This might reduce the brand image and popularity of the organization in the market. Employee preference for non-unions: now a day, the demand of non-unions is increasing as all of them are extremely conscious. This is because; they try to present their feelings and problems in front of the management due to good interpersonal relationships. So, maximum number of the individual workers desire for non-unions which acts as one of the prime cause for the decline of the trade union density in the organizations of UK, US, EU among others (Ebbinghaus & Visser, 1999, pp135-158). Trade union Strategies: the strategies of trade unions are changing day by day. As a result, of which, the density, the demand of trade union density is decreasing rapidly in the entire globe, since after 1980 (Frege & Kelly, 2003, pp. 7-24). Improvement of employment rates: the rate of employment is increasing. As a result of which, the rate of living standard and values enhanced that increased their career prospects and dreams (Clegg, 1960, pp. 323-334). Outlaw illegal strikes by employment laws: due to reduction of illegal strike rates by the employment laws of various regions of United States, United Kingdom and European Unions, the demand of trade unions decreased at a considerable extent (Gumbrell-McCormick & Hyman, 2013, pp. 522-534). High bargaining power of the customers: due to globalization, the rate of bargaining power of the customers in various developing and developed countries increased. As a result of which, maximum extent of the organizations, desire to offer high concentration over research and development so as to develop inventive products. Along with this, the organizations always desire to retain or attract the experienced and talented staffs so as to increase its popularity and dominance in the market. Therefore, the management of the organizations always desire to offer performance related pay systems to its employees in order to enhance their motivation and inner morale (Long, 2012, pp. 110-123). So, the density of trade unions has reduced significantly in rent age as compared to previous age. Changing pattern of employment: the employment structure of the organization changed significantly in this recent age due to change of employment policies (Beatty & Schneier, 1997, pp. 223-234) and strategies (Blyton & et. al. eds, 2010). In most of the private sector organizations such as heavy engineering, coal mining, steel and textiles, agreement letters are issued stating the terms and conditions of the appointment. As a result, in case of any sort of mismatch, the employee or the worker might directly communicate with the higher authority. Due to which, the importance and influence of trade unions are reducing in these private sector organizations as compared to previous age (Bryson & Forth, 2010, pp. 223-234), (Visser, 2007, pp. 634-645). Reduction of strikes: now a day’s, the rate of strikes reduced significantly due to good interpersonal relationship among the employee and employer. As a result of which, in case of any sort of miss-confusion, the employees talk directly with the employers and tries to sort it out so as to maintain his or her dominance and reputation. As a result, the need of trade union is not at all required in this age (Kelly, 2005, pp. 512-523). Thus, due to these underlining causes, the density of trade unions after 1980’s declined due to improvement of private sector organizations, employment rates, wage rates and working attitude of the employees. Analysis Trade unions are associated in order to reduce the exploitation of the workers or employees by workers participation in the management. Rather than this, trade unions are joined by numerous members in order to improve their wage rates, working conditions and job security (Bryson, 2014, p.362). However, in these recent ages, each and every requirement or detail of appointment is written in the letter at the time of joining. As a result, the level insecurity of jobs decreased to a significant extent that reduced the demand of trade unions. Apart from this, due to the improvement of the wage rates or salaries or incentives of the workers or employees of various private sector companies, the rate of insecurity of jobs also reduced (Williams & Adam-Smith, 2010). Other than this, in order to amplify the level of motivation or inner morale of the employees, the management tries to offer varied types of extra benefits such as bonuses, appraisals, improved machineries, techniques etc (Behrens & et. al. 2004, pp. 123-134). Due to which, the rate of employment as well as living standard of the workers increased that reduced the demand and density of trade unions in this age as presented in the graph. (Source: Williams & Adam-Smith, 2010) Thus, it might be clearly revealed that due to improvement of the employment rates ad wage rates, the density of trade unions reduced. Conclusion Conclusively, it might be revealed from the above mentioned points that, the density of trade unions declined in recent age due to improvement of the employment rates. This became possible due to the introduction of private sector organizations as well as improved wage rates. Other than this, due to implementation of varied types of improved or advanced machineries, the density of trade unions reduced significantly in this age of globalization. Moreover, due to improvement of the wage rates and experiences, the rate of employment increased that diminished the power and dominance of trade unions. As a result of which, the rate of membership in trade unions reduced in almost numerous developing countries in the entire globe. References Beatty, R. W., & Schneier, C. E. 1997. 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