Union membership in Australiais confronting the issue of decline since 18the century. It is declining in a rapid manner which is creating major barrier for the companies in terms of offering employment opportunities. A report polished by Australian Bureau of Statistics that the level of trade union membership is promptly declining. Trade union membership in the private sector of Australia is even lower than thehalf. It is true that, community support to trade union membership is comparatively strong, however the declining nature is creating reluctant attitude among the workers to join the trade union. Get best Employment Relation Assignment Help from our writers.
During 25 years, the trade union is rapidly deteriorating. First Australian trade union has been formulated in the year 1820. During 1850 to 1869 there are more than 400 unions which are being formed in Australia. These unions has been resulted in several skilful and knowledgeable workers such as carpenters or craftsman(Holgate, 2015). Most of the trade union in Australia has been formed with the aim of providing necessary support to the workers during health related problems.
The growth a trade union has played a significant role in terms of mitigating gap in between employers and labours. However, from 1890, this trade union started to face several issues in terms of operating their activity properly. Present essay will highlight the background of Australian trade union decline along with its reason. Fundamental consequences of this trade union decline will be discussed as well as its impact on employment will be evaluated.
Almost 25 % of the workforce, the membership related to Australian Trade Union movement is one of the most significant matter of consideration in recent scenario. This is alarming issue which can pose greater challenge worldwide. Trade Union membership us declining since its initial phase. From the labour force survey 1976, it can be said that trade union membership has been declined drastically. Selection related to consecutive statement as well as the advent of Keating Government has generated issue among the trade union members to run their business properly(Bean, 2015). On the other hand, during 1993, election of a Liberal government in South Australia has decreased the union membership by 34.5%. In the federal level, the union level movement has raised as the outcome of disinterest on Keating Government. This failing membership number and trade union density are one of the major concern of Australia. Also visit management assignment help.
This decline is largely due to the lack of proper infrastructure in the advancement of economy, During Anglo-Saxon world the representation towards this decline is needed to be discussed by considering organisation model. Unrelentingoptimism can be regarded as one of the most significant factor of the trade union decline. This has created major pressure on the workers to negotiate by their own rather that as the part of trade union who conduct the process of negotiation for the sake of workers(Hodder, et al., 2016).
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Based on the statistics, it can be said that the women workers are showing reluctant attitude towards entering into trade union. The rules and regulations related to workforce has created barriers for the union to hire employees(Cregan, 2013). During 1990, Australian state government has introduced new work force I order to lower the power of union to recruit staffs. These changes in rules and regulations has created major gap in between income level among the rich and poor staffs. At the same time, minimum wage structure is another important issue which resulted in this problem. Please visit HND assignment help.
According toBrigden & Kaine, (2015) the percentage of labour who belong from Australian Trade Union has been declined by 6.9%. Despite the strong effort put by the statistics of Australian Bureau has showed that the trade union is rapidly declining. It is important to note in this context that as per this report trade union membership has been declined by 28% during 2000. There are several causes which have a firm impact on trade union decline. Casualization of the workforce is one of the most significant reason behind the trade union decline in Australian. This is increasing proportion in the workforce by engaging large number of subcontractors and offshore employees. This is creating major barrier for the local employees to take part in the trade union.
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On the other hand, Cross & Gauja, (2014)said that expansion of trade in both unionised and non-unionised organisation in abroad as well as in Australia is curbing the ability of the members of Trade Union to enter freely in labour market. During 1980, this restrictions for the members of trade union is resulting in corruption. There is another significant factor which perhaps one of the crucial determinist of trade union decline.
Free loader is the only way through which wage related benefits can be provided can be provided to the workers. This has also created barrier for the workers to take part in enterprise bargaining agreements(Hui & Chan, 2015). This issue related to free loader has generated preferences among the policy makers of trade union to assign the workers by their own preferences. They basically wish to hire only unionist employees. This is absolutely illegal practice which has curbed the ability of non-unionist workers to improve their productivity.
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Ellem, (2013)commented that the rules and regulations related to freedom of association is reduces the form of discrimination on the members of trade union. However, implementation of this law is quire costly process as it is the tendency among the employers to treat a non-unionised members less favourably than unionist member. The union holds a poor public image as they are inefficient as well as corrupted. This seems to become one of the vital reason behind trade union failure(Sheldon, et al., 2016).
There are both macro and micro economic consequences which have been posed by trade union decline. Trade uniondensity is in the phase of retreating. There are both positive and negative related to reduce power of trade union. This trade union under some effective bargainingstructure can have a firm impact on changing the macro economy into favourable condition. The policy makers are becoming less aggressive towards providing opportunity to all the staffs equally(De Grauwe, 2014). By making the modifications of the structure of trade union, the policy makers can be able to frame policy in accordance with needs and demands of workers. In between 1973 to 2011, the power erosion of trade union has resulted in providing hourly compensation for workers. This is the way through which staffs are becoming motivated as well as committed towards satisfying organisational objectives. Contact us for University of Sydney assignment help.
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The hourly wage of the staffs has been increased by 10.2 % as the employers are providing equal employment opportunity to the members irrespective of their socio-economic background.This level of growth has been taken place during late 1990 as a result of wage explosion. On the other hand, real wage and compensation structure are becoming able to attract wide range of skilful and knowledgeable working professionals(Dabla-Norris, et al., 2015). Australia holds lower number of union density as a result more than 14000 staffs has become unionised.
One of the most significant consequence of this declining density of trade union can be referred as the shift towards privatisation. This is resulting in increased managerial functionality and leading the employers tobelief that privatisation should be aligned with the business strategy in order to gain competitive advantage and sustain in the global business environment(Waddington, 2013). This is resulting in improving poorer working condition for the employees.
During the weaker performance of trade union is generating commitment among the business organisations to improve their salary structure for retaining the employees. The inclusion of anti-union ideology is acting as a powerful mechanism for improving economic condition. On the other hand, managerial prerogativehas a firm impact on the larger company’s CEOs to check the salary structure for those workers who are belonging from below povertyline(Bean, 2015).
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On the contrary,Ibsen & Tapia, (2016) argued that the trade union is blaming the work related rules which has reduced their power. This rules and regulations related workforce is helping the companies to hire more range of bottom line staffs and thereby maintain their sustainability in global economy. This is increasing the ability of the companies to be less competitive as the trade union has a firm impact of defining salary and organisational structure for the employees.
This is making the working condition to the companies in compared to those who holds lack of trade union power. Free riding has a firm impact on executing collective agreement worldwide. It is true that membership agreement has a firm impact on reducing trade union density. This can reduce the right of management and alter the working for both the union and non-union members.
As the result of trade union decline, there are more than 20% of unauthorised workers who are more likely to attain health insurance coverage by their employers. On the hand as much as 50% of workers can get pension offered by the employers. The decline of trade union hasaffected middle age workers(De Grauwe, 2014). It has resulted the wage gap in between the employees based on their designation. Impact of trade union decline has strengthen the fact that it has resulted in wage inequality among male and female workers. The Unionized male workers have acquired more benefit than that of others.
The trade union of Australia is confronting with some major issues. This is a hindrance towards offering employment opportunities. This are the barriers which are being faced by the workers to join in the trade union. The inclusion of trade union has played a vital role towards overcoming the gap in between the employers and labours. This issue is becoming major concern in world wide.
Lack of proper mechanism and inability to cope up with advancement of economy are the major reason behind this catastrophic condition of trade union. Irrelevant optimism is another vital issue which is creating inability among the workers to express their perception properly. As the power of trade union is rapidly declining, the employers are becoming committed towards changing their organisational structure as well as working condition based on the needs and demands of workers. These workers are also showing their concern towards modifying their salary structure and provide equal salary to all the working irrespective of their background. This is acting as a motivational factors for the staffs and leading them to achieve organisational objectives.
Bean, C., 2015. Changing Citizen Confidence: Orientations towards Political and Social Institutions in Australia, 1983-2010.. The Open Political Science Journal, 8(1), pp. 215-220.
Brigden, C. & Kaine, S., 2015. Rethinking factional alliances and union renewal: Inter-union collaboration in the 21st century.. Economic and Industrial Democracy, 36(2), pp. 239-257.
Cregan, C., 2013. Does workplace industrial action increase trade union membership? An exchange relationship approach to union joining and leaving behaviour.. The International Journal of Human Resource Management, 24(17), pp. 3363-3377..
Cross, W. & Gauja, A., 2014. Evolving membership strategies in Australian political parties.. Australian Journal of Political Science, 49(4), pp. 611-625.
Dabla-Norris, M. et al., 2015. Causes and consequences of income inequality: a global perspective.. London : International Monetary Fund..
De Grauwe, P., 2014. Economics of monetary union.. Oxford: Oxford university press..
Ellem, B., 2013. Peak union campaigning: Fighting for rights at work in Australia.. British Journal of Industrial Relations, 51(2), pp. 264-287.