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Employment Relations and Law (MG6103)

Individual Essay- 25th November 2015

Question:

What role do unions play in a modern economy? To what extent

is union decline a consequence of shifting economic and

demographic labour market factors. How might unions revitalise

themselves given declining membership and influence?

Student Name: Student ID: Signed:

Fergal Conry 10304199

Word count: 3089 (excluding references and cover page)

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Introduction

Phelps Brown (1990) has described the decline of trade unions as the “most profound

counter revolution of all time” (Dundon and Rollinson 2007, pp 105). In changing economic

and social times worldwide, the status of trade unions as the main representative of workers in

the modern working environment has come under great scrutiny, while their membership levels

have declined dramatically. Turner et al (2013) states that unions have a continuing function in

a modern economy to increase the bargaining power of workers and to represent workers in

any decision that effects their working lives, while evidence in the past has suggested that

unionized workers in the US benefit from higher wages and benefits, better seniority protection

and better grievance procedures than non-union workers (Freeman and Medoff, 1984). Despite

these discernible benefits, it has become clear that trade unions influence is suffering largely

from the emergence of a more decentralised, fragmented and rights based employment system

(Oireachtas Spotlight,2011), where workers no longer view union representation has inherent

to their working lives. Unions have gone from being a staple in the employer-employee

relationship, up to being a social partner with the employer and the government via collective

bargaining, to a much weaker position since the onslaught of the most recent economic

downturn. However, what this essay will seek to make clear is that trade union decline is not

solely influenced by changes in economy, with a number of political and demographical factors

also directly contributing to their regression, particularly in the case of Ireland. To this end, it

is important to discuss the existing role of trade unions in light of these changes as well as the

highly contentious debate over possible renewal strategies such as the organising model, the

servicing model and also the partnership model.

Role of Trade Unions in a Modern Economy.

The Trade Union movement continued to develop in Ireland from the 1913 onwards

aiming to provide a real voice for workers. It’s without question that their primary function has

been the protection of employees and to redress the imbalance of power in the employee-

employer relationship, but their role has become far more varied. Trade Unions role in securing

the best possible wages and conditions for the employee highlights their contribution in

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economic regulation and the protection of all members from vulnerability in the Labour market

(Dundon and Rollinson, 2007). Dolvik and Waddington (2002) argue that trade unions role has

changed in this regard to respond to declining membership by attempting to reform the

bargaining agenda to encourage participation from underrepresented groups, such as

women and younger workers, particularly in private-sector services. They have attempted

to do this by bringing to the bargaining table important modern considerations such as

‘family friendly’ issues and the inclusion of temporary workers. While conflicts of interest

still exist between the different parties to the employment relationship, then unions still have a

role here in providing a collective answer to threats against the employee. To this end, unions

can take retaliatory action to gain more favorable conditions of employment for their members

in the form of industrial action (Gunnigle et al, 2004).

The role of unions was at its peak in Ireland with the onset of the Social Partnership

regime in the 1980’s throughout the last couple of decades. This system involved a series of

nationally agreed collective wage packages between the governments, employers and trade

unions. (Gibbons, 2015) In discussing social partnership, another of trade unions most

important roles becomes apparent, which is precisely their role in influencing the political and

social framework of the state (Gunnigle et al, 2004). The most recent partnership regime

emerged out of a democratic capitalist system which Pepper and Regan (2014) state arose from

the government, led by Charles Haughey, needing unions to help implement and mobilize

support for reforms of Labour policy. It was seen as a coordinated response to the recession at

the time and offered the government stability without industrial action, as the unions had such

influence on any Labour policy and a centralized role in pay negotiations across sectors. This

neo-corporatist stance gave such power to trade unions in Ireland that some have questioned

whether this arrangement was betraying the union’s democratic core, a theory known as the

iron law of oligarchy (Michel in Dundon and Rollinson, 2007). While the strength of this

function has weakened considerably, as will be discussed below, unions also maintain a number

of other important roles in the employment relationship such as advisory, training and dispute

resolution services which have taken increasingly significant importance in maintaining union

relevance in recent years.

Finally, authors have also argued for trade unions role as an “agent of social justice”

(Murphy and Turner, 2014). This reflects the “sword of justice” function in Flanders’ (1970)

concept of the double edged sword (cited in Dundon and Rollinson, 2007). SIPTU’s 2004

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campaign on behalf of Irish Care workers started as a simple organizing campaign for care

sector employees and turned into a movement that went beyond the employment relationship,

appealing to the workers as family members and as citizens to question the state’s role as an

employer and as protector of vulnerable citizens. Webster (2006) as cited in Murphy and Turner

(2014, p.384) classifies this role as “social movement unionism”. The focus of this essay will

now go on to analyze the various demographical Labour market and economic factors which

have affected the modern role of trade unions, including a growing public-private sector

divide, the influence of globalization on the workforce and the effect of the economic recession

coinciding with the demise of the social partnership regime in Ireland.

Factors hastening Trade Union decline.

Since their emergence, trade unions have been characterised by high level density in

the public sector workforce and despite a radical demographical transformation in the labour

force worldwide, its argued that their leadership has still continuously remained characterised

largely by older white males (Bronfenbrenner, 1998), which reflected a membership heavy in

male, manufacturing and manual workers (Visser 2002,p.405) . These inherent outdated

characteristics are now compounding the struggles of trade unions since the onset of the most

recent economic recession. Unions decline has been influenced by a growing structural divide

between the union dense public sector and the increasingly fragmented private sector, as well

as the organizing union’s lack of consideration for a growing number of women and younger

workers in employment. In the private sector, collective representation was traditionally more

popular in the manufacturing industries, which has haemorrhaged employees since the 1980’s,

and was highly dominated by male workers, neglecting the service industry where women

would have largely remained (Dundon and Rollinson, 2007, pp. 92). Reasons put forward for

lack of female participation include a traditional tendency for women to remain in short term

employment with consideration to their work in the home and also a perceived lack of necessity

on their part for collective fight (Turner and D’art, 2003). In terms of the growing lack of

membership among younger workers, research puts forward a number of factors have laid

foundations for the belief amongst them that trade union membership is no longer a necessity.

Bryson and Gomez (2005) propose that a major factor in union decline has not been a

haemorrhage of people leaving unions or an increased level of non-union industries, but more

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to do with a rapid rise in workers who have never been a member of a trade union in the first

place. Consequently, the number of “Never-member” workers in the UK rose from 28 % in

1983 to 48% in 2001, an increase the authors put down to two factors, a growth in different

types of workers and more difficulty in joining a union in the modern workplace.

The first point, has already been touched on, and can be attributed to the rise in density

in the service sector, as well as an increase in the temporary, part time and casual workers,

neglected by trade unions. Many of these new service sector firms employ women and younger

workers and place emphasis on flexibility in employment as key to the firms survival, with

unions seen as hindrance to this. (D’Art, D. and Turner, T., 2008). Additionally, a higher level

of education amongst the modern workforce has led to a growth in the number of “knowledge

workers”, workers in high skilled professions who feel they don’t require the protection of

union status due to a stronger knowledge of their rights and more perceived autonomy from

employer oppression in the workplace. (D’Art, D. and Turner, T., 2008). The second point

requires further attention here and is centred on the increase in Multinational companies’ entry

into the private sector in Ireland in particular, stemming from a much more globalised business

economy. One of the biggest issue’s with this development is centred on the status afforded to

unions in Irish law. While the Irish constitution contains provisions allowing workers the right

to join a trade union, this recognition has been undermined by subsequent decisions taken by

the courts and reflected in Irish legislation. This is evident in the 2001 Industrial Relations Act

which contains no provision requiring the employer to recognise the status of trade unions,

while also affording no protection for union members involved in a recognition dispute (D’art

and Turner,2013). Therefore, Ireland has remained by nature a voluntarist state and,

additionally, it is one of few liberal market economies without explicit legislation requiring

employer recognition of trade union status. (Cullinane, 2014). This stance has proven very

successful, among other factors, in encouraging MNC investment into Ireland, but its

consequence for unions lies in the growth in the number of private sector companies who have

explicit non-union recognition. Gibbons (2015) contends that the 2001 Act led to a more

individualised means to dispute resolution than in the past and contributed towards employer

hostility towards unions. Nevertheless, it seems the government will continue to adopt this

approach to encourage continued economic growth, with further light touch employment law

introduced, leading to further decreased union density in the private sector.

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It’s proposed here the factors above were taken for granted by Irish trade unions,

evidenced by their support of this arguably employer friendly employment law and this was

largely due to their strong influence in the Partnership regime which came to a sudden end in

2006/2007 with the onset of the Economic downturn. One could now argue that the

government’s protection of Foreign Direct Investment, to the exclusion of Unions (who they

have put partial blame on for the downturn), is shaping up to resemble a neo liberal politica l

position, resembling past governments of Thatcher in the UK and Reagan in the United States

(Dundon and McDonough, 2010). What is clear is that in continuation of their role in the

protection of workers, unions must think of new ways to exert their declining influence in light

of employer and state resistance and this must come from the very bottom upwards by reaching

broader and more diverse range of workers.

Routes to renewal

Trade unions will and should always maintain relevance in a democratic workers

society. They are seen as key to holding some form of democracy via “voice, protection and

humanity of the labour commodity”, with a necessity to maintain some level of employer

accountability in a volatile relationship where market forces often work against the common

worker (D’Art, D. and Turner, T., 2008, pp. 60). Its undeniable therefore that unions must

embrace the changes brought on by a changing workforce and globalisation and become more

innovative in the ways they go about protecting worker rights. Phillips (2011) states as much

as she posits that for trade unions to retain their importance in modern society they need become

for accessible and inclusive by improving the position of women and migrants within their

ranks. The contentious question is to how best this may be achieved, with some arguing that

unions need to place greater emphasis on the servicing side of their functioning such as the

advisory and consultation services, while other commentators call on unions to concentrate on

organising methods from the bottom and reach the underrepresented private sector and

multinational company workers. Dolvik also believes traditional unions are facing a difficult

decision on whether to target the growing number highly educated service employees or

continue to refocus efforts on the low skilled proletariat. This essay highlights and discusses

two strong possible ways for trade union renewal given these difficulties, unions as a

complement to existing employment legislation to defend workers’ rights and also Trade

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unions focusing on combining elements of their servicing approach with a strong organis ing

approach from the bottom up.

On the first of these suggestions, unions can seek to complement existing employment

law. This is an approach based on ample evidence that unions can act as positive mediators by

informing and advising workers of their legal rights (Heery, 2005). SIPTU’s recently

established Workers Rights Centre is used as an example here. The WRC provides advice to

SIPTU Organisers on employment rights and assists its members in making claims under the

various pieces of Employment Rights legislation, such as the Unfair Dismissals Act and the

Employment Equality Acts (SIPTU, 2015). In this manner, SIPTU and other unions who may

adapt this approach can protect individual workers in non-union friendly companies and help

them vindicate their rights. This can be viewed as a form of consultancy unionism, with the

focus on an adversarial approach with limited organising from the union. Critics of this

approach argue that it is not strong enough in posing a threat to the employer and depends on

a level of co-operation on both sides which, as has been discussed above, is not always

forthcoming in a current workplace (Boxhall 2008). Gibbons (2015) states that unions support

of the 2001 act will not guarantee proper bargaining in the face of employer opposition and

promotes union organising as the strongest way forward. .The second of these approaches is

seen as more promising, yet more difficult on the union’s part to integrate, as it aims to treat

the previous strategies of the servicing union and the organising union as not mutua lly

exclusive. It would encapsulate providing a centralised servicing approach as an incentive to

new members across industry boundaries, with an aim at a decentralised level of trade union

density away from the public sector, achieved through a grass roots organising strategy (Dolvik

2002).

The servicing approach is centred on trade unions providing workers with professiona l

services such as negotiation or financial services as an incentive to encourage them to join

(Dundon and Rollinson 2007). However, this approach in isolation is considered to be too weak

a leg for the future of trade unions to stand on alone in providing a real fight to employer

control. Boxhall and Haynes (1997) illustrate that the servicing union approach proved highly

ineffective as a means of counteracting the neo liberal approach of the New Zealand state.

However it’s proposed here that a focus on this servicing style with emphasis on modern tools

such as “virtual” or “online” unions may be extremely beneficial, as it has proved in Sweden’s

case, when combined with a sustained organizing approach (Dolvik 2002). Trade union

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organising revolves around allowing workers to be empowered directly at a more localised

level. Therefore, it’s proposed here that union’s best chances of meaningful renewal may lie in

organising their efforts to reach the previously underrepresented groups of the past such as

women and younger workers. Incremental steps have been taken in this regard, such as in the

changes to the bargaining agenda which has been discussed, but more must be done.

Decentralisation of union resources to reach these fragmented labour market sectors and

promotion of worker activism through strong local leaders in the workplace is a viable way

forward (Dundon and Rollinson, 2007). Dolvik (2002) highlights a number of countries where

this organising strategy proved successful, most notably the UK organising academy where

strong training has been made available to organisers for new recruitments. However these past

studies on its success to date have focused on homogenised groups of workers. SIPTU’s

organising campaign of Irish care workers proved a very successful recruitment tool by

collective bargaining for 12,000 home care workers, proving that a sustained organis ing

campaign can prove highly successful if a strong degree of collective fight can be created in

what, in this case, was a very dispersed and highly segregated sector (Murphy and Turner

2014). The demographical changes highlighted above need to be addressed by any trade union

organising strategy to recruit and empower a range of new diverse members.

Conclusion

The role of the trade union has now been greatly isolated to the public sector due to the

rise in both peripheral workers and the growth of MNC’s here in Ireland. The neo liberalist ic

state approach that has developed in this country is evidenced by light touch employment

legislation and the increase in FDI from non-union companies. Unions have been designated

to a largely individualist and servicing employee assistance role as the strong collectivist

worker fight of the past has dwindled, bringing with it the influence of the Trade Union despite

continuing efforts to revitalize their efforts. However, it’s argued that workers still need the

presence of trade unions, as instances of injustice at the hands of the employer are still regular ly

in the limelight. This is evidenced by the rise of zero hour contracts in large retail firms in

Ireland and further afield (Inman, 2015).

Although a shift in state ideology would be the ideal way forward, unions may never

gain quite the degree of influence they once had, particularly in the realm of Labour policy.

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This however may not necessarily be a bad thing. Unions need to be seen to be the real voice

of all workers, not just a powerful representative of Vissers “male, manufacturing and manual

workers” .In fact as Dundon suggested it may have been this level of influence in the

partnership regime that led to their downfall in the eyes of the common worker and that a return

to the partnership union model will prove an ineffective path for union revival as evidence

suggests it leads to lower wages and higher turnover overall (Dundon and Rollinson 2011) .

ICTU general secretary David Begg has stated that the collapse of the partnership regime will

provide a chance for unions to start again and reconnect with workers (Oireachtas Spotlight,

2011). This paves the way for a Union organising model that aims to inspire and build a

foundation of diverse worker participation in the absence of a much needed government and

legislative support which is not forthcoming.

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