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Economic and Industrial Democracy Free Riding in Australia This article gauges the nature and location of free riding in Australian work places with reference to a survey in 2004. (Web-Haynes, Holland, Pyman and Teicher), Purpose of article is to analyze those parts of the 2004 Australian Worker Representation and Participation Survey (AWRPS) that gauge location and nature of free riding in Australia and evaluate implications for union strategy and public policy. The topic has been discussed under headings of; theoretical & empirical study of prior literature, history, data and methods used, findings, motivations, location, correlates, discussions.

conclusion, notes and references with details of writers, Keywords used in the study include bargaining agency fees, free riding, trade union membership and union joining. Free riding has been a contentious issue in Australian industrial relations. 51.7 % employees are considered as deliberately free riding. Implications of findings for union renewal have been discussed in the study. Large numbers of Australian workers take a free ride on union membership gaining the benefits of union coverage without paying costs of provision.

Unionists view this as unfair. The study discusses free riding in detail, explains methods used for survey and discusses implications for public policy and union strategy. Unions cannot provide services free of cost but at the same time cannot afford to loose members. Free riding is important issue since it deprives unions of financial resources that could be used for organizing and power resources that could be used at the bargaining table and in the political arena. Data gathered helps to test whether benefits motivate people to join unions or not.

The study differentiates between true free riders and induced riders. In USA, free riding is covered by union contracts. Cases in USA, Britain and New Zealand have been discussed as empirical studies. There are varieties of motivations for employees for joining or not joining unions basing on demography and worker characteristics. In Australia, free riding has increased from 1930s to 1990s due to decline in compulsory membership. In1990 agency fee of AUS $ 500 was increased from 300.

It was imposed by ETU, and contributed a lot towards free riding. In 2001, fees were challenged but AIRC rejected the challenge. In 2003, compulsory fees were outlawed under Act 2003 passed by Liberal National Government. Data used is based on AWRPS 2004, which surveyed 1000 Australian workers. Computer assisted telephone interviews were conducted from October 2003 to march 2004.60 % workers did free riding due to six reasons. Only 19.2 % were against ideology of union. Various tables carrying data have been provided in the study basing on factors, gender, age, income, country of birth occupation, educational achievements, organizational tenure, employment status, supervisory responsibilities and industry.

Non-members willing to join on demand were excluded. Only tenure and supervisory responsibilities have a significant effect on free riding behavior. Findings disclose that lack of perceived benefits is a main reason and not the ideology. Findings in Australia and Newzealand are similar. Analysis reveal that large number of Australian workers who have the opportunity to be members of their unions do not join (39.2 %), with complex motivations. Effectiveness of unions and ineffective workplace organization is a major factor.

The complexity of the reasons workers give for not joining the on-site union may reflect two issues; heterogeneity of workers (some benefit more than others) and heterogeneity of unions (some are more effective than others ). Study is considered important in the backdrop of hostile legislative environment facing Australian unions. Findings suggest focus on two areas; grass root organizing asking workers to join and convincing workers that unions can deliver. It has been concluded that free riding is a secondary problem to union effectiveness being primary one.

Study is considered preliminary and further research has been recommended.Work CitedPeter Haynes, Peter Holland, Amanda Pyman and Julian Teicher, Free-Riding in Australia, Economic and Industrial Democracy, 29July 2008, Published by:http://www.sagepublications.com.On behalf of: Department of Economic History, Uppsala University Sweden, 31 March 2011,, http://eid.sagepub.com/content/29/1/7, http://eid.sagepub.com/