Trade Unions in Britain - Essay Example

? Trade Unions in Britain Trade unions in Britain Trade unions are organizations of workers that have come together with the purposes of achieving common goals. The common goals include better working conditions and better salaries. Through its leadership, the trade unions engage in negotiations with the employers on behalf of the employees a process known as collective bargaining. The trade unions are therefore an important aspect of the business world as they ensure that there are smooth relationships between employers and employees which in turn creates a harmonious working environment which ensures the smooth sailing of the business activities. The trade unions in Britain traditionally had a system in which the bargaining was based on industries. This gave the trade unions a sense of institutional security in their operations within the private sector. By 1950, approximately 60% of the workers in the private sector were under collective agreements that had their origins outside their firm of employment. Several events and developments however combined to cause the decline of the trade unions and their influence (Fernie & Metcalf 202). The decline of the trade unions in Britain began in the years since 1979. This was after the election of Margaret Thatcher’s government that had conservative policies that were aimed at weakening the trade unions (Wrigley 2002, p40). This decline followed a period of rapid growth and increase in membership and influence in the 1950s. The collapse of the trade unions could therefore be anticipated following the decline experienced. There were several factors that contributed to the decline and the eventual collapse of the trade unions. These reasons included the gap existing between the top officials in the unions and the other members, the lack of vitality of the local trade unions and the increased centralization of the operations of the trade unions and the rise in the level of unemployment among the citizens among others (Kelly & Heery 2009, p9). The decline of the trade unions meant that the trade unions lost their influence in the private sector and also in the public sector. In the years after 1980, the decline of the trade unions became increasingly visible. This was seen in terms of the decline in the membership of the unions as well as in the financial performance of the trade unions. The decline in the unions was also seen in the collective bargaining influence which was said to have declined from 70% to 40% in the years between 1980 and 1998 (Brown et al. 2003, p199). The future of the trade unions in Britain has largely been discussed. The discussion in based on the impact that the trade unions are expected to have in the future, and whether the trade unions are expected to grow or face a decline. The purpose that the trade unions serve has also come under scrutiny. It is however important to understand the role that the trade unions are expected to play so that one can understand the impact that they are likely to have in the country. It is also important to understand the crucial role that is played by the trade union and their function in the country. The 1999 Employment Relations Act in Britain was a significant step in marking the recovery of the political influence held by the trade unions. This came after many years of exclusion from the process of policy making. The act has also been important in that it has stimulated the increase in the organization of unions, and helped the trade unions in getting recognition from the employers. The act has also paved way for the trade unions to adopt policies that are aimed at increasing their membership across all sectors of the economy. There are however many limitations to the influence that trade unions wield on the Labor government in Britain. While the trade unions have an opportunity to engage the government in dialogue over various labor policies, the government often ignores many of the ideas and representations of the trade unions. The trade unions also find it increasingly difficult to influence the government policies. They have found it hard to convince the government to abandon or slow down the implementation of unfavorable policies. There are also some cases in which the work of the trade unions has been hindered by the divisions that exist between the different unions. The ministers therefore get an opportunity secure support from some sectors of the trade unions for some of the contentious measures. This is done by exploiting the divisions among the trade unions to get some of the members to support the contentious measures. The vocal opponents in the trade unions are isolated. This makes it hard for the trade unions to influence the policies developed and implemented. The impact of the trade unions to government policy is therefore reduced by the problems that face the unions. In addition, the unions are faced by structural difficulties in their operations. These are caused by the fact that most of the trade unions retain their affiliation to labor despite their disagreement with the government policies (Mcllroy 1995, 365). The trade unions provide services to the state. The services they provide are those that the state cannot easily fulfill without the trade unions. The trade unions fulfill a vital role in the public sector by ensuring that there is proper enforcement of the labor laws in the country. The trade unions also play an important role in ensuring that the government fulfils the obligations that it has to the public and the quasi public bodies. The trade unions serve as the representative voice of over the 5 million government employees. The unions work to defend the interests of these member employees. The unions present an energetic defense of the employees’ rights. The trade unions also play an important role in the promotion of public policy which is applicable in the private sector. The trade unions nominate members who play an important role in the bodies that have the responsibility of regulating the labor markets. These key bodies include the Employment Appeals Tribunal, the Equality and Human Rights Commission, the Low Pay Commission, and the Central Arbitration Committee among others. The Trade Unions have also been involved in the development of their representatives so as to enable them to perform more specialized roles in the specialized commissions. Despite the decline in the membership numbers of the trade unions and the decline in their bargaining power, the trade unions still have the bargaining capacity for their members. This has mainly been due to the improvement in the organization and because of the state support through legislation. The state support has also been through the extension of the collective agreements to the workers who work in non unionized organizations and the other non organized employees. The legislations and policies that have been put in place because of the Trade Union’s work includes the provisions for expectant mothers to take leave and for those who have been working for over an year to ask to be granted extensions on their maternity leaves. There is also the provision paternal leave for men whose wives are expectant (Budd and Mumford 2001, 3). The trade unions also play a vital role in welfare state reform. This is done through the defense of the interest of those who are former wage earners against unfair policies by the employer or by the government. The unions play an important role in negotiating the reforms in the social policies in employment. The trade unions still retain their function of negotiating for collective agreements. These agreements between the trade union or group of trade unions and the employers aim to set out agreeable and favorable terms of service for the employees. Such agreements are important as they help in avoiding future confrontations and disagreements between the employers and the employees. Such disagreements which may spark of occurrences such as strikes are bad for business as they cause unnecessary and unwanted disruptions. The trade union also play the important role of ensuring that there is no discrimination in the hiring process thus provides equal employment opportunities for both men and women, and even for the minority groups. This is important as it ensures fairness and it makes the access to employment opportunities more equitable (Guthrie 1996, 20). The collective bargaining agreements that are sought by the trade unions are important because they aim to provide job security and better working conditions for their members. The agreements also aim at protecting their members from unfair employment practices such as wrongful or unfair dismissal. This is especially important as there is high competition for jobs which may cause some employers to treat their employees unfairly (Roth 2010, p3). The trade unions under the collective bargaining agreements also offer a wide range of employment related services to the employees. These services include making claimed for compensation in cases where an injury has been incurred while at work. While the relationship between the trade unions and the employers has traditionally been cold and confrontational, the relationship is evolving and becoming more constructive. This is because the two sides have realized that engaging in dialogue with the trade unions saves time and is cheaper while compared to engaging negotiations with all the individual employees. The trade unions have also become a vital part of the process of communication between the employers and the employees. The unions also serve to increase the morale of the employees as the employees perform better when they know that their welfare and their interests are being taken care of. Despite the decrease in the influence and power held by the trade unions, they continue to achieve success in their roles. Research suggests that employees who belong to trade unions earn approximately 12.5% more in hourly wages than their counterparts who do not belong to any trade union. The members of the trade unions who work in the private sector also earn a 10% premium pay that is as a result of the collective bargaining by the trade unions (Achur 2011, 17). The trade unions have also a considerable amount of money as unfair dismissal awards for their members. This has been in the various employment tribunals. The amount of money that has been won by the trade unions has been found to be higher than the amount that is awarded in a dismissal cases that are not backed by the union. Such success means that the members who belong to the unions are protected from unfair practices which employers may engage in and this protection helps them to be more productive at work. The security that comes from the knowledge that they cannot be dismissed without reasonable ground also serves to improve performance. The unions are also performing a role that is vital in the private sector. There some cases in which the trade unions have gained recognition in the retail sector which in turn has increased trade union membership. This has led to the improvement in the working conditions of the workers. It has also led to the improvement of the working relationships between the employers and the employees. The union’s impact and role has also been felt in the increase in the efficiency in management of organization. This is because the union supports efficiency in the organizations from which their membership is drawn (Howell 2007, p174). To ensure that they continue to serve their intended purpose in the economy, the trade unions have had to increase their membership. To increase their membership, the trade unions have come up with various policies that are aimed at attracting more people. Many trade unions have felt the need to come up with family friendly policies which include providing their members with subsidized care givers and free healthcare for the member’s children. Some of the unions also provide meals which in turn improves the worker’s performance which is beneficial for business. It is noteworthy that despite the decrease in the membership of the trade unions and the different problems that face the trade unions, they (trade unions) continue to serve an important purpose in Britain’s economy. It is therefore important for the trade unions to continue increasing their membership and working towards policies that have benefits for both the employer and the employees. Bibliography Achur, J., 2011, Trade union membership 2012, retrieved 2011-10-27 from http://www.bis.gov.uk/assets/biscore/employment-matters/docs/t/11-p77-trade-union- membership-2010.pdf Brown, W., 2001. ‘The Limits of Statutory Trade Union Recognition.’ Industrial Relations Journal. 32 (3) 4-180-194 Budd, J., & Mumford, K., 2011, Trade unions and Family-Friendly Policies in Britain, retrieved 2011-10-27 from http://www.legacy Fernie, S., Metcalf, D., 2005, Trade unions: resurgence or demise? New York, Routledge. Guthrie, R., 1996, The role of management and trade unions in promoting equal opportunities in employment, retrieved 2011-10-27 from http://www.coe.int/t/dg3/migration/documentation/Series_Community_Relations/The _role_of_management_and_trade_unions_en.pdf Howell, C. 2007, Trade Unions and the State: The Construction of Industrial Relations Institutions in Britain, 1890-2000, New Jersey, Princeton University Press. Kelly, J., Heery, E., 2009, Working for the Union: British Trade Union Officers, New York, Cambridge University Press. Mcllroy, J., 1995, Trade unions in Britain today, New York, Manchester University Press. Roth, S., 2010, Labor Unions: Have Labor Unions Outlived Their Usefulness in the Modern Business Working Environment? Munich, GRIN Verlag. Wrigley, C., 2002, British trade unions since 1933, New York, Cambridge University Press. Read More