The Role of Trade Unions in Sweden and the UK - Essay Example

Compare and Contrast the role of Trade Unions in Sweden and the UK Trade unions, otherwise called labour unions, are organisations of workers that haggle with the employers for the members and negotiate labour contracts with the employers. “Trade unions have played, and will continue to play, a decisive role in shaping economic and social developments in Britain” says Brian Roper, Chief Executive of London Metropolitan University. (The union makes us strong. 2003). The role of the trade unions assumes greater significance in the modern times where negotiations of various types with the employer take place only through the intervention of such unions. Negotiations on wages, work rules, complaint procedures, rules of hiring and firing, promotion of workers, benefits, workplace safety, working condition, policies and other crucial elements of the work are made possible through the intervention of the trade unions. The most important function of trade unions is the maintenance and improvement of the conditions of employment and they have various goals and activities. They include the provisions of the benefits to the members, collective bargaining, industrial actions like strikes and resistance, and political activities. The traces of trade unions date as long back as the early 18th century. The changes in the system began to take place in the Western nations, especially in Britain, where there was a transformation in the industrial culture as a result of industrial revolution and related activities. With the advent of industrialisation, the vitality of the trade unions also increased. There are many conditions that make the trade unions affect the decision making and policy framing of the Human Resource Management in the modern context. The primary purpose of the trade unions is to safeguard the interest of the employees and the HR management is very much conscious of the relationship with the employees. Thus, the interest of the trade unions and that of the management departments of modern employment firms collide. Here, the role of the management firm is one of merging the interest of the trade unions with the development of the company and going ahead with policies that contribute to the growth of the firm without affecting the employees’ interest. This type of employment management varies from country to country where the role of the trade unions also differs. The special context of Sweden, where the socialists want to have the full employment and equality of the employees, is different from that of the UK. In the UK, the management of the employment was made much easier by the involvement of many factors like voluntarism. The historical development of trade unions gives us the evidence that they were the necessary evil of the time. There were many conditions that went on to the development of trade unionism as one of the most popular organisations and institutions of the world. The crucial historical view of trade unionism is that it “is a continuous association of wage earners for the purpose of maintaining or improving the conditions of their employment.” (Webb & Webb 1920). But a modern definition states that a trade union is “an organization consisting predominantly of employees, the principal activities of which include the negotiation of rates of pay and conditions of employment for its members.” (Trade union census. 2006). Over the time the scope and role of trade unions increased and today they play a vital role in the bargaining power of the workers. In the UK the trade unions overtook the role of the political labour movement through the second half of the nineteenth century till the early twentieth century when the Labour Party came into being. To turn our focus on the modern trade unions, it is relevant to have good knowledge about the structure, politics, legal status, and some definitions of the trade unions. They are different in the different nations. There are different forms of trade unionism like the craft unionism, industrial unionism, and the general unionism. They organise a particular group of skilled workers, all the workers of an industry, and cross-section of workers from different trades, respectively. These various trade unions organised in local unions, national federations, and international entities. In certain countries these unions enjoy the legal power and rights. They work as the bargaining power for many industrial disputes and there are many ways like industrial strikes and so on those help them to safeguard their interests. In the extreme situations they go out for violent actions. These unions take part in the general social and political struggle as well. There is room for democratic procedures in the trade unions in the election of the leaders and so on. It is a proven fact that the members of the unions enjoy more privilege than those who are not the members. So, the relevance of trade unions in the modern industrial world is unquestionable. Let us now focus our discussion on a comparison and contrast between the trade unions of various countries. For this, we shall have a comparative and contrastive investigation on the employment management, political and economic context, the role of government, the issues of the system, employment participation and other related matters of the trade unions of the UK and Sweden. All these will give a good awareness of the similarities and difference between the roles of the trade unions in both these countries. First of all, let it be noted that the labour laws as well as the functions of the unions differ from nation to nation. Thus, the role of the trade union in the UK is not the same as that of Sweden. This is applicable to the unions of any country and they all vary while there are many functions and characteristics that unite the different unions of the world. Thus, there are many similarities as well as differences in the roles played by the unions of the UK and of Sweden. In the UK, Margaret Thatcher’s government came up with nay laws in the 1980s that controlled the trade unions’ involvement in many issues. Now, as a result, there is no compulsion on the workers to join the trade unions and any such attempt is illegal. The work of the trade unions was regarded as resistant to the reform efforts of the state as they were not working within the framework of the labour laws. Such restrictions, however, did not reduce the effectiveness of trade unionism in the UK. The intervention of the government in the trade unionism at a time when there was great pressure on the industrial relations affected the morale, ideology and organisation of the unions. The most significant trade union in the UK is the Trade Union Congress consisting of sixty one unions representing 6.4 million members across the state. The TUC has close affiliation with the Labour Party of the UK. In the context of the UK, trade unionism is the most significant representative of the collective bargaining. As it is often remarked, “Britain is the home of the collective bargain.” (Freund 1943). There is great importance of voluntarism in the UK. “The UK system of worker representation was based historically on the ideology of voluntarism.” (Bogg 2006). What is voluntarism? “Voluntarism is the view that the system of industrial relations should be characterised by a lack of legal intervention. The view that the law should "keep out" of industrial relations” had significant impact on the employer-employ relations in the UK. (Voluntarism. 2007). The influence of voluntarism on the contemporary shape of worker representation is ever on an increase in the UK. Voluntarism is important even today as it continues to shape legal regulation of the collective bargaining process and consultation procedure. There was a favourable predilection for voluntary collective bargaining. Historically, there was a non-union representation of the employees within a firm. As the role and importance of trade unionism, as many consider, is on a decline, the reemergence of voluntarism is crucial today. Voluntarism is a significant element of humanity these days without which there would be more restrictions on the service sector. The most commendable merit of voluntarism is that it “unites groups of people under a common cause, empowering them to make a difference in society” and it has provided important resources. (Perkins 2007). However, there are many favourable aspects of the development of trade unionism in the UK. The role of the Labour Party is crucial in this respect which treats the unions as legitimate representatives of the workers. There are ever so many issues like long working hours, low wages, inadequacy of legal assistance, the improved awareness about the rights of the employees and other such that doubles the role of the trade unions. There is now a better leeway of indisputable relationship between the union and the employers. The role of the unions in the global perspective is also on an increase and the working of the international unions is the result. In this context, the unions in the UK works hand in hand with the other European nations to safeguard the interest of the people all-over. This is also a favourable condition to the increased role of the trade unions in the UK. To consider the role of trade unions in Sweden it is noteworthy that the most important role of them in the standardisation of work is to use all their experience and knowledge to in contributing to the better standards and to assist the workers in their employment-related needs and activities. Sweden has a long tradition of the join effort of the authorities and social partners in cooperating to drew up work environment regulations the Swedish Trade Union Confederation was involved in the activities related to work long before the nation joined the European Union. The most important trade unions in Sweden include Swedish Trade Union Confederation (LO), The Swedish Confederation of Professional Employees (TCO), and the SACO. The first of the three includes sixteen unions and is closely aligned with the Swedish Social Democratic Party. The TCO consists of eighteen unions and the SACO is an organisation for union covering graduate level employees. “The capacity of trade unions to renew themselves clearly depends on a variety of political and organizational factors. British trade unionism has long been seen as defensive, sectional and reactive. In contrast, Swedish unions have a reputation for interest and involvement in organizational innovation. This contrast is broadly confirmed in our case studies, though political and economic changes pose severe problems for traditional strategies in both countries. If British trade unions are to develop strategically, they will need their own positive agenda on the central workplace and societal issues. (Thompson et al 2007). A comparative analysis of the trade unions in the UK and Sweden makes clear the different types of similarities and differences between the trade unions of both these nations. There has been an extensive decline in trade union membership throughout most of Europe over the last two decades and this has been true in the case of the UK and Sweden as well. There has been a great basis for the security of the workers’ freedom and organisation rights in Sweden. This is mainly because there is no restraint on people to join the trade unions according to the ILO Convention. These unions enjoy powerful collective bargaining rights and can use collective power in case of a conflict. As against many European nations, Sweden has a high representation in the trade unions where more than 80% of the employed citizens are members of trade unions. Now it seems very significant to have an overview of the “Swedish Model” which is acknowledged by many other nations as well. This plays an important role in the management of employment in the nation. The social democrats of the state, following the model of many other socialists, “abandoned the goal of socializing production as the primary way of reforming capitalism. Instead, they sought to construct a welfare society within a capitalist structure.” (Silverman 1998). The issues regarding the prosperity of Sweden were major problems that remained and the “Swedish model” sought to respond to the issue that threatened the economic growth. The years that followed the World War created problems of various types on the economy and the employment related areas. There were restrictions of various types on wages and other related issues. The economists of the Swedish Confederation of Trade Unions formulated strategies that came to be known as “Swedish Model” which sorted out many problems that existed. This directed the government to use restrictive fiscal and monetary policies that would help in the management of the existing issues. Labour market measures and policies were proposed for the complete employment. The Swedish model aimed at creating a more equal society through a comprehensive and universal welfare system introduced by the government and a wage policy of solidarity instituted by the unions. The highly centralised collective bargaining system, the cooperation between the trade union confederation and the employer’s confederation etc. were so significant in the generally acceptable wage policy and other related consensus. The “Swedish Model” was successful in achieving full employment and equality until 1980s. This was a model for many other European nations, especially the UK which suffered from the growing neo-liberalism and the scattering of the state socialism. This model, however would not survive the challenges put forward by the new developments and situation. The role of trade unions in the management of employment is crucial in the UK and Sweden. Political and economic context of both these countries were favourable for the development of the trade unionism in Sweden, the economic condition in the context of socialism and the related matters of development were significant in the development of the trade unions. Historically, there were many factors that affected the growling role of the unions and they were crucial in the great interest of the working class. They always worked for the interest of their members. In the modern context of issues related to employment participation and the clouds of economic growth in line with the interest of the socialists, the trade unions will have ever so many new roles to play. Employment management has been an important concern for the government as well as the employer. The joint works and efforts of the trade unions and the employers unions in Sweden helped in solving many disputes of great concern. There is a major concern about the employment question in the state. When we revise the history, we come to understand the great role played by the trade unions all over the world and they had a significant impact on the labour movements in the last century. In the UK and Sweden, they were the leading agency for the cause of the employees. They always advocated worker safety and the increase and maintenance of the wages and the other necessary conditions. The transformation of the labour law and favourable policies for the employees happened due to the efforts of the trade unions. To cite an example of the great role played by the trade unions of the UK, the protection of the women’s right in the employment situation may be noted. The women there, on an average, earn 20% less than what the men earn. However, those who are protected by the trade unions earn 24% more than the women who are not the members of the union. Thus, the role of the trade unions is very significant in the modern condition. Employment management becomes much complicated in the respect. The HR management has a greater role to play in this context. This needs to safeguard the privileges and well-being of the employees for the cause of whom the trade unions exist. At the same time, the management department cannot overlook the interest of the company at any cost. This is to mean that the Human Resource management is the key entity that protects the interest of the employer as well as the employee. In conclusion, the significant role played by the trade unions in the UK and Sweden is unquestionable. The employment management is one of the priorities of the Human Resource management department. The similarities in the employment management related activities of the of trade unions in the UK and Sweden is mainly due to the fact that there are certain employment condition that are similar in most of the modern countries. Their role is universally relevant and there are many similar aspects that affect the employer-employee relations all over the Europe. The difference in the working of the trade unions in the UK and Sweden is mainly due to the situations that are peculiar to these countries. There is significant part played by the governments in the organisation of the trade unions in of both these countries. All these institutions – the trade unions, management and the government – contribute to the best interest of the employees. Bibliography BOGG, Alan L (2006). Representation of Employees in Collective Bargaining within the Firm. Abstract. Voluntarism in the UK. Last accessed 14 November 2007 at: http://www.ejcl.org/103/abs103-3.html Freund, O Kahn., 1943. Collective Agreements under War Legislation. 6 Modern Law Reviews. 112 PERKINS, Susan (2007). Voluntarism. Definition. [online]. Learning to Give. 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