Trade Unions are Irrelevant and Belong to the Past - Essay Example

Name: Tutor: Title: Trade Unions are Irrelevant and Belong to the Past Course: Date: Table of contents 1.0 Introduction................................................................................................................................3 2.0 The Decline of Trade Unions in the 21st century……….………………………………….….4 3.0 Trade Union Renewal…………………………………………………………………………7 4.0 Conclusion.................................................................................................................................9 6.0 Bibliography………………………………………………………………………………....11 Trade Unions are Irrelevant and Belong to the Past 1.0 Introduction The concept of trade union refers to an organization of the working class formed for the purpose of protecting the welfare of workers in their relationship with employers. Trade unions first emerged in England between the 17th and 18th century in response to organizational challenges related to work and production in factories. Unions became necessary because modern industrial establishments were growing larger by the day, leading to employment of more workers that had poor individual bargaining power for better remuneration and better working conditions. Trade unions sought to impose restrictive conditions on working relationships in the conduct of business or trade. They acted as instruments of defense and forums for workers to combine forces against exploitation by employers. For trade unions to succeed beyond the 21st century without becoming irrelevant, less relevant or extinct, they are required to embrace modern trends in industrialization. Of critical importance to the survival of labor unions is the recognition that the nature of employment and work has changed and calls for readjustments in relationships to accommodate the interests of all parties, including employers(Cooper, 2000: 580-86). The 21st century continues to witness a rapid decline in the influence and prosperity of blue-color trade unions. The decline is largely attributed to globalization and changes in industrial management practices that have more emphasis on technology, downsizing and outsourcing in order to be economically sustainable and globally competitive (Manning, 1994: 430–59). This paper explores trade union theories and modern trends associated with globalization that threatens the relevance and survival of trade unionism in the 21st century and beyond. 2.0 The Decline of Trade Union Movement in the 21st century Trade unionism is experiencing a drastic transformation especially in the industrialized world. In Australia for instance, there has been a steady decline in trade union density. The anti-union legislative agenda that was recently initiated poses a significant threat to the function and power of unions, as well as their capacity to initiate collective bargaining in the workplace. The last 10 years has witnessed frantic efforts aimed at union renewal, with increased emphasis on implementation of organizational strategies that support leadership development in the workplace. Union renewal in Australia is based on several strategic features that include labor community coalitions, social movement unionism and community unionism. The success of the trade union renewal campaign is considered to be highly depended on criteria aimed at enhancing common interests of all stakeholders, a coalition structure and more trade union participation in matters that pertain to wage and working conditions (Griffin and Moors, 2004: 37-68). According to Marx theory, the trade union movement is used as an instrument to counter and destroy the capitalist class. Marx argues that the primary function of trade unions is to represent the economic demands of its members. To be able to effectively secure their demands, unions are compelled to engage in political activities as a means to strengthen the movement. Globalization in the 21st century has, however, opened up geographical boundaries for industries to relocate and set up shop in other countries, a factor that has rendered unions incapable of engaging in political and social activities to empower themselves as envisaged by Marx. Marx points out trade unions have not been very successful because of their inability to eradicate systems of wage slavery and methods of production that have been greatly influenced by modern technology (Owens, 2006: 165-175). Howard (1977) attributes the crisis that the trade union movement is facing especially in Australia to changes in industry, occupational structure, outsourcing of labor and weaknesses in strategies used by unions. In response to these changes, many unions have been compelled to change their strategy, with most of them resorting to new methods of organization in the workplace. New strategies involve recruitment and active participation of delegates and members in union activities (Cooper, 2000: 580-86). Trade unions are limited by legal and structural requirements that render them only viable within the confines of a given country. With an increasingly globalised economy, organizations have been presented with opportunities to avoid yielding to unionized wage demands. Multinational companies consider it more profitable to manufacture products in countries where the influence of trade unionism are undermined by the interfering and manipulative role of government agencies. Watson (2003) acknowledges that the diminution of the function of Australian trade unions in representing workers in the past decade is a reflection of broader changes in the modern working society, they include a significant change in demographics, transformation in work attributes, and a shift from manufacturing to a more service oriented economy( Watson, 2003: 49-54). In the Capitalism theory advanced by Frank Tannebaum, he attributes exploitation of workers to the increased reliance on machines for industrial production. His argument is that the trade unionism is a spontaneous reaction of workers to the negative impact of capitalism on industrial processes and the nature of employment. According to Tannebaum, overreliance on machines in production makes individual workers feel insecure and unionize as a self defense mechanism. Trade unionism is thus an inevitable byproduct of industrial society where workers feel their creativity, purpose and identity have been greatly undermined by automation of production processes. The Rapid technological innovation witnessed in the 21st century has made it possible for multinationals to outsource or subcontract the production of some products to locations that have less stringent union regulations and lower wage demands. In the industrial Democracy theory advanced by Sidney Webb, trade unions emerged as a means of introducing democracy in the industrial sector. Their objective was to initiate the transformation of industrial relations from autocracy to democracy. To this end, unions sought to find solutions to industrial conflicts through equality and collective agreements (McCrystal, 2006: 198-215). Trade unions were thus developed to empower workers to deal better with the much stronger economic and political powers. The goal of trade unions as stated by Webbs is not a mere reduction in working hours and increases in wages, but a complete social reconstruction through elimination of capitalism. Webb acknowledges that this can be achieved if the focus can be shifted from profit making to profit sharing. He goes further to mention that this may not be easily achievable, as employers are pushed to decrease wages and improve product quality in an attempt to meet market demand for better quality products at more competitive prices. Webb’s observation is exemplified in strategies that are employed by modern organizations such as downsizing and outsourcing. Downsizing is a managerial strategy involving a reduction of the workforce in order to improve the productivity, efficiency and competitiveness of an organization. The high retirement and medical care packages offered to unionized workers without a corresponding increase in productivity are widely regarded by employers to be an unnecessary expense. Increase in global competition has required managers to develop and implement strategies that enhance corporate profitability and market competitiveness. The heavy investments in labor saving technologies in the manufacturing sector have drastically reduced the demand for workers. Factories now prefer to use computerized robots that not only cut down costs of production, but significantly enhance overall productivity. With improved supply chain management practices such as Just-In-Delivery of pre-assembled components, manufacturers are relying less on unionized workers to provide services that can cheaply and seamlessly be obtained in other locations (Kaufman, 2000: 189-209). In the Servodaya approach, Mahatma Gandhi advocates for a system where labor and capital are supplementary and not antagonistic. The co-existence is to be founded on the core principles of truth, non-violence and trusteeship. Gandhi's approach does not concern just the material aspects of labor relations, but the moral and intellectual responsibility of workers and employers. According to Gandhi, trade unions are required to do more than just advocate for better wages and working conditions. . Apparently the good intentions on which unions were founded now seem to be a glorious past. Modern trends in globalization have rendered trade unions incapable of serving these functions, and are widely deemed to be irrelevant and on the verge of extinction. According to Gandhi, the primary objective of trade unions should now be to enhance the overall betterment of the working class by offering services such as training in supplementary occupations as a precautionary measure against uncertainties such as job losses. 3.0 Trade Union Renewal Globalization of trade has opened avenues for multinational companies to pursue the options available globally to maximize their revenue at the least cost possible. The implication on the blue-color work structure is that employee’s can no longer be guaranteed of long-term employment, a factor that significantly undermines the strength of union movement (Griffin and Moors, 2004: 39-65). Trade unions derive their power from having large union membership within the confines of a given country. The current global economic landscape that allows for relocation of businesses to different countries does not support the existence of such unions. The future of trade unions particularly in Australia is very uncertain, as their role has significantly lessened to that of acting as agents of individual members. According to Briggs (2002), the shift in the role that trade unions play in Australia is attributed to legislative changes that include the initiation of individual statutory rights, increased focus on enterprise, introduction of non-union agreements and a reduction in the extent of protection for trade union activity and organization. The changes have significantly weakened the function of unions in establishing and sustaining acceptable working conditions for Australian workers. The trade union renewal strategy employed in Australia focuses on forging a working relationship involving unions and community based organizations. The strategy of union-community relationships is meant to deepen relationships that are vital in forging a long-term agenda for trade unions. The success of these relationships is based on the capacity to develop and support workplace leadership, investment of more resources in political union education, and creation of more opportunities for stewards in the workplace to participate in community awareness campaigns. As observed by Tattersall (2006), a trade unions renewal and empowerment strategy should focus on community unionism, which should entail a working partnership between the trade union movement and community organizations. Working partnerships in Australia that involve both the unions and community organizations are employed as tactical measures to stop the decline in union power attributed to anti-union laws, employer hostility and the diminutive influence of traditional forms of collective bargaining(Tattersall, 2005:95). The trade union strategy used in Australia has been observed to be short-term as relationships between unions and other organizations have been proved to be relatively distant and simplistic. As observed by Tarrow (1994), the relationships are mainly focused on requesting for one-off financial support and participation in campaigns. The relationships only become active when parties have to respond to a crisis, which often turns out to be an opportunity that is seized as a political tool to reach out to like-minded parties. The episodic nature of such engagements restricts effective collaboration with community organizations, as only union leaders are engaged and not union members. The relationships have a shortcoming of being misconceived as purely transactional, a factor that may create animosity as community organizations begin to feel used on one hand, while on the other unions get frustrated by requests from community organizations for financial support (Tattersall, 2005:95). 4.0 Conclusion Judging from national economic trends across the globe, the wage structure and income distribution especially in developing countries has little to show for the contribution that trade unions have made to wages, national outputs and the prevailing inequalities in income distribution. The decline in the influence and activities of trade union movements in the 21st century is attributed to several factors. Foremost are modern trends in globalization that have enabled organizations to outsource or relocate and manufacture their products in environments that offer a cheap supply of labor. With more emphasis on profitability and market competitiveness, industries are employing cost saving production practices such as downsizing, outsourcing and relocation to countries that provide a more enabling business environment. In order to remain economically and competitively relevant in an increasingly globalized economy, employers are bound to pursue more profitable options such as off shore diversification and outsourcing of the most qualified workforce at the cheapest possible cost. Trade union members are thus required to adjust their expectations in consideration of the effects of an increasingly globalised economy. As recommended by Gandhi in the Servodaya approach, trade unions should focus on training members to take up roles in alternative occupations as permanent employment is no longer a guarantee in the 21st century and beyond. Bibliography Barry, M., and P. Warring. 1999. “Shafted”: Labor productivity and Australian coal miners. Journal of Australian Political Economy 44:89–112. Briggs, C. (2002) the new employer militancy: Anti-unionism in the new millennium. Sydney, Australia: Cooper, R. (2000) ‘Organise! Organise! Organise! ACTU Congress 2000’, Journal of industrial Relations 42(4): 582-94. Griffin, G. and Moors (2004) ‘The Fall and Rise of organizing in a blue-Collar Union’, Journal of Industrial Relations 46(1): 37-68 Howard, W. A. (1977) ‘Australian Trade unions in the Context of Union Theory’, Journal of Industrial Relations 19(3): 250-70. McCrystal, S. (2006) ‘Smothering the Right to Strike: Work Choices and Industrial Action’, Australian Journal of Labor Law, 19, pp. 198-209 Tarrow, S. G. (1994). Power in Movement: Social movements, Collective Action and Politics. Cambridge, UK: Cambridge University Press Tattersall, A. (2005). “There is Power in Coalition: A Framework for Assessing How and When Union-Community Coalitions are Effective and Enhance Union Power.” Labor and Industry, 16 (3), 95. Owens, R. (2006) ‘Working Precariously: The safety Net after Work Choices’, Australian Journal of Labor Law, 19, pp. 165-175 Watson, I., Buchanan, I., Campbell, I., and Briggs, B. (2003) Fragmented Futures: New Challenges in Working Life, Federation Press, Sydney. Read More