The Role of Trade Unions in Organizations in Australia - Literature review Example

THE ROLE OF TRADE UNIONS IN ORGANIZATIONS-A CASE STUDY OF AUSTRALIA {Insert university name} {Insert instructor’s name} {Insert student’s name} July 27, 2012 Table of contents Introduction……………………………………………………………………………………3 Background for the establishment of trade unions…………………………………………….3 The role of trade unions, government, employers and other stakeholders in the contemporary employment relations in Australia……………………………………………………………..4 Outcome on employment relations and resource management systems ………………………8 Australian trade unions and globalization…………………………………………………..…9 Conclusion………………………………………………………………………………….…10 References…………………………………………………………………………………….12 The role of trade unions in organizations-a case study of Australia Introduction According to Silver (2003, p. 23) trade union is any organization that is formed by a group of workers with an aim of attaining certain goals. In Australian, it is possible for trade unions to attain the legal entity status also called collective bargaining over not only working hours and wages but also employment conditions and terms (Dabscheck, 1995, p. 11). This means that the aforementioned are not unilaterally agreed upon by the management but set by all the parties involved. Nonetheless, in most situations trade unions lack the rights an aspect that can make workers to resort to collective actions such as strikes with an aim of pressuring their respective employees to a mandate that could make them negotiate with their employers with an aim of not only improving their working conditions but also their wages. In the aforementioned situations, the trade unions have particular legal rights such as negotiating with the employers. This essay will critically examine the role of trade unions in the contemporary employment relations in Australia. It will further examine employment relations and human resource management in Australia and challenges that have set ground for union role or intervention. Background for the establishment of trade unions Trade union movement flourished in Australia during the 20th century. For instance between 1920 and 1980, the membership doubled (Griffin & Svensen, 1998). However, Teicher & Svensen (1998, p. 21) point out that the status and power were derived from arbitration and centralized conciliation system in 1901. The key challenges that resulted into formation of trade unions included poor working conditions, poor wages and the need for employees’ recognition and the mentioned challenges have also been experienced in the 21st century (Munck, 2004, p. 250). Even though, the centralized system seemed to deliver the aforementioned, union officials saw the need of establishing arbitral strategies for the purpose of realizing their goals. The next section will discuss the role of trade unions in contemporary employment relations in Australia and the role of government and other stakeholders in addressing the mentioned challenges. The role of trade unions, government, employers and other stakeholders in the contemporary employment relations in Australia According to Benson (1998, p. 45) trade unions apply their organizational strength in advocating for legislation and social policies to the workers or their members in general. Australian Trade Union has a history dating back to 200 years when the convicts started fighting over living and working conditions (Lansbury, 1990, p. 51). However, over the past years, the workers have demanded for accident compensation, superannuation and maternity leave. Additionally, the trade unions did not only fight for better working conditions for the workers but also represented the employees in a number of trade negotiations and industrial disputes, thus trade unions have been essential part of Australian industrial relation systems (Munck, 2004, p. 252). There have been very prospects of trade unionism in Australia, one of them being workplace reforms. According to Hawke & Wooden (1998, p. 75) workplace issues has been key political and economic debate in Australia. The Labor Party which had been in power from 1983 to 1996, sought to establish change via a formal accord with various Australian union movements (Lansbury, 1990, p. 53). In the accord, the trade unions reached an agreement to moderate the wage demands that were presented by their members. However, Dabscheck, (1995, p. 34) argues that with the help of the trade unions, the existing government also started to embrace labor market reforms. Some of the reforms were employment relation system decentralization. However, the key change started in 1996 when the liberal-national coalition government came into power and it was led by John Howard (Fox, Howard & Pittard, 1995, p. 56). Even though the government did not destroy the arbitration system of the country it changed the Australian employment relations from its collectivist traditions. As a result there was the arbitration system and the unions were fragmented and in place there was individual bargaining between employers and the employees (Lansbury, 1990, p. 54). Sappery, Burgess, Lyons, Buultjiens (2006, p. 42) in their studies pointed out tha the workplace relations Act 1996 was the beginning of significant industrial relations decentralization up to the level of enterprise but with wider non-union agreements as well as AIRC role of diminution. The Act encouraged employers to join non-union agreement or enter into an individual contract with the workers (Dabscheck, 1995, p. 18). Using various strategies, the trade unions have played key roles in regulating both work conditions and wages of the employees. However, previous studies have indicated that Australian Workplace Agreements are not mainly key forms of agreement between employees and employers (Fox, Howard & Pittard, 1995, p. 61). This is due to the fact that they are perceived as government’s strategies and political symbol that are aimed at spearheading, non-unionized and individualized ways of bringing reforms and addressing workplace issues argued (Benson 1998, p. 55). However, various Australian trade unions have applied a number of strategies in improving workers productivity and performance for instance negotiating with both the government and the employers. On the other hand, certain organizations have put in place sophisticated human resource approaches with an aim of ensuring high quality while some have focused on cost reduction (Teicher & Svensen, 1998, p. 116). In 1993, the Reform Act was passed and the key changes entailed enhancement of enterprise bargaining an aspect that made the previously dominant award system to be regarded as a safety net in introduction of high protection and workplace protection for the rights of the individuals in particular pertaining to minimum entitlements and unfair dismissal like equal pay (Dabscheck, 1995, p. 20). The aforementioned Act further issued clear protection for any form of industrial action seeking workplace bargains as well as establishing other provisions with an aim of protecting equity (Fox, Howard & Pittard, 1995, p. 64). According Teicher & Svensen (1998, p. 118) the aforementioned legislation in addition to other wage alterations during the same period of time resulted into Australian industrial relations being pushed up to enterprise level. Dabscheck (1995, p. 21) in his work however points out that there is likelihood of new systems enhancing the aspect of flexibility within the workplace. However, the established conditions were geared towards enterprise-specific factors. After the establishment of the Reform Act, the number of enterprise agreements had significantly increased (Lansbury, 1990, p. 62). Nonetheless, according to Dabscheck (1995, p. 27) in the past there has been growth in the adoption of enterprise bargaining and a trend in individualized workplace agreement forms. However, the mentioned as not contributed to decline in collective forms of workplace relations in Australia (Teicher & Svensen, 1998, p. 220). Moreover, recent studies have indicated that there have been increased workplace innovation and change in Australia in the last decade. But there has been a decline in collaboration between unions and employers as a result of globalization and government’s role in harmonization of workers rights. However, there has been growing concern by the trade unions over the encouragement of the federal government on its declining support on collective bargaining and labor market institutions and spearheading individualized forms pertaining to employment relations (Munck, 2004, p. 261). However, it is unlikely that Australia will adapt the centralized system on employment relations but an approach that is more coordinated will result into flexibility in labor market thus making the system attractive to the workers (Lansbury, 1990, p. 69). In current labor market, the employers have the challenge of winning the trust of the employees who perceive their place in the labor market as not only tenuous but also insecure. However, Teicher & Svensen (1998, p. 118) point out that the trade unions have the challenge of attaining a cooperative relationship with the employers while at the same time representing the rights of their members. On the other hand, the Australian government has the challenge of developing policy frameworks that are effective in nature Dabscheck (1995, p. 44). In 2006, Australian Workplace Relations Act 2005 not only reduced the role of the trade unions but also their powers. Moreover, there was dismantling of the of unfair dismissal legislation for firms employing less than 100 or 100 employees. Hence, Dabscheck (1995, p. 34) argues that it is evident that the Australia encourages employment relations other than industrial relations. It is evident that the government have minimized the powers of trade unions and instead put in place a system that encourages employers to negotiate conditions and terms of employment with small groups of individual employees who are not members of any trade union (Lansbury, 1990, p. 72). The Australian state government legislation has also impacted on trade union except in Victoria. For instance in 1996, Victoria abdicated key industrial relations responsibilities to the existing federal government. This happened after the workers fled in large numbers to join the federal system as a result of Kennett state government election. In line with the mentioned, it can be pointed out that the Australia government has addressed the labor challenges via formulation of legislations and Acts. In some instances, they have also supported the role of trade unions. However over the past years, there has been a decline in the role of trade unions. According to Dabscheck (1995, p.43)the decline can be attributed to the increased employer and government opposition to trade unions an aspect that caused substantial reduction in compulsory unionism and closed shops incidences. Another factor that contributed to decline in trade unionism according to Lansbury, (1990, p. 762) is economic structural changes. Silver (2003, p. 169) points out that the increasing propensity of governments and employers in opposing trade unions was a result of the increased unemployment rates in 1990s and early 2000. Outcome on employment relations and resource management systems According to Dabscheck (1995, p. 45) globalization has contributed to change in the human resource management. This is as a result of improved technology and innovation that has made human resource managers to get better in performing their duties. Therefore, human resource managers are in a position to positively influence employers to provide decent working conditions and better pay (Teicher & Svensen, 1998, p. 226). This has influence the role of trade unions as they have become less important. However, some employers ignore the role of the human resource managers and exploit employees with an aim of maximizing profit. Presently, the aim of the human resource manages is not to control employees but to create a working environment that will ensure increased productivity and generation of new ideas. In the current industrial relations, human resources managers are exploring ways of creating workplace environment that meet the need of the employees thus making the role of trade unions in negotiating for workers’ rights (Munck, 2004, p. 266). In the recent past, management has aimed at introducing changes in the workplace without consulting the workforce. In the age whereby the rate of unemployment is very high, numerous jobs have become precarious making high percentage of individuals to be employed on a casual basis. This has made workers to be against some of the changes. According to Griffin & Svensen (1998, p. 90) in order to ensure genuine involvement, there should be collaboration between the employees and the employers. The next section will examine Australian trade union and globalization. Australian trade unions and globalization The term globalization has a wide variety of definitions, in relation to the aspect of globalization, it can mean ways in which the global capital has become nation state free in terms of it being bound by certain regulations and laws that may not only govern location of production but also corporate behavior (Silver, 2003, p. 166). The aspect of globalization includes issues such as importance and growth of multinational enterprises, labor market deregulation, privatization, liberalization, financial markets internationalization (Griffin & Svensen, 1998, p. 90) The aforementioned issues have not only caused challenges to Australian trade unions but also to the workers. Trade unions have perceived the element of globalization as loss of jobs, decrease in the wages, rapid poverty growth and poor living and working conditions for the workers. Additionally, studies have proven that Australian workers have been negatively affected by globalization. Hence, Australian trade unions have restructured to address the challenges brought about by globalization (Silver, 2003, p. 170). According to Munck (2004, p. 122) thousand of individuals are seeking employments all over the world without being successful. In Australian, high rate of unemployment has been reported for the last 10 years. The mentioned situation has resulted into decline in trade union memberships. Griffin & Svensen (1998, p. 89) argue that the key contributor to the decline in union density is the reducing proportion in manufacturing employment in Australia. Hence the following section will look into the roles that need to be played by Australian trade unions in addressing the element of globalization. It is important to point out that the aspect of globalization was initiated by government bodies world wide and Australia was not an exception. Hence, it is essential for the Australian government to provide support facilities aimed at training trade union member and the employees so that workers are competitive in the global labor market (Lansbury, 1990, p. 118). Conclusion In regard to the mentioned, debates on the consequences and impact of globalization are likely to continue in Australia. Hence, Munck (2004, p. 265) adds that it is essential for trade unions to reformulate all their goals with an aim of ensuring that activities are identifiable with values such as fairness and freedom that are not only fundamental but also widely held. Additionally, it is essential for Australian trade unions to work together in order to ensure effective sharing of information so as to tackle challenges experienced by workers as a result of globalization. Munck (2004, p. 260) points out that if Australian trade unions will be in a position to tackles challenges as a result of 21st century globalization, they are likely to grow. Nonetheless, it is not likely that in the near future, trade unions will disappear. The reducing trend in Australian union membership indicates an alarming future. Hence, Hawke & Wooden (1998, p. 84) in his own observation points out that the future of Australia trade unions may not be promising. References Benson, J. (1998). Workplace union organization in Australia. Working Paper No.40, Labour Studies Programme, University of Melbourne. Dabscheck, B. (1995). The struggle for Australian Trade Relations. Oxford University Press, Melbourne. Fox, C.B, Howard, W, A & Pittard, M (1995). Industrial Relations in Australia. Sydney: Longman Australia Griffin , G. & Svensen, S. (1998). ‘The decline of Australian union density’-a survey of the literature, Journal of Industrial Relations, 38:4, 505-547. Hawke, A. & Wooden, M. (1998). ‘The Changing Face of Australian Industrial Relations’: a survey of economic record, 74:224, 74-88. Lansbury, R. D (1990). Australian Approaches to Industrial Democracy’, in R.D Lansbury (ed) Democracy in the Workplace, Melbourne: Longman Cheshire. Munck, R. 2004. Globalization, labour and the ‘polyani problem’. Labour History, 45, 3,pp 251-269. Sappery, R.,Burgess, J., Lyons, M 7 Buultjiens, J. 2006. Industrial relations in Australia. Frenchs Forrest, NSW: Pearson Education Australia. Silver, B (2003). Forces of Labour. Workers movement and globalization since 1870. Cambridge: Cambridge University Press. Teicher, J & Svensen, S. (1998). Legislative Changes in Australasian Industrial Relations, 1984-1997, Working Paper No.56, National Key Centre in Industrial Relations, Monash University. Read More