Decline in Trade Union Membership in Australia

Running Head: EMPLOYMENT RELATION 0
HRM

EMPLOYMENT RELATION 1
Introduction
In recent time, trade union membership has declined in the Australia. It has led to the fall or
emergence in the Australian labour in industries. in the 20th century, the assimilation of the
system of the essential arbitration, formulated in order to mediate the industrial disputes and
strengthening the labour unions. At the time of 1948, the support or assistance for the
unionism was at its peak. The long procedure of the fall in union membership has started as
working cadre constituency has supplied its social anchor due to the structure transformation
in the economy. Due to this, the breakdown of arbitration post 1986 has aggravated the
pattern of fall, as a rise in anti-union tactics of the employers and unwarranted employment.
The essay has presented the fall in the union density in Australia (Regalia and Regini, 2018).
Studies are also critically compared and analysed and the reviews are brought to light the
complexity of issue. The importance to avoid the simplistic response as well as
recommendations regarding the areas of study has mainly augmented the comprehension of
the decline in the unionisation of Australia.
Antecedents and consequences of decline in the trade union density
According to the Australian Bureau Statistical figures presented in the year 2000, it is found
the fall in the union membership in the nation. In spite of the attempts made by the Australian
Council of the trade union, there has been fall in the union membership. Due to the decline in
the density of union, it is essential to evaluate the reasons behind it. It order to handle the
issue, it is also essential to handle such issue as well as understanding the major gaols of the
union that draws the antecedents and members of the decline.
The union of Australia was set up in the half of the 19th century with the remarkable growth.
In the decade of 1880s, the rapid growth seemed to be appeared. Besides this, limited labour
market as well as wealthy economic condition was the drivers in order to develop the union.
The major objective of the union is to enhance as well as promote the interest of9 all the
members. The union membership was created for offsetting the increasing financial power of
all the employers. It is true that the employees can also counter the dominance of the entire
market by employers if they will stand jointly. The most essential function performed by the

EMPLOYMENT RELATION 2
union is to maximise the wages and salaries of the employees (Freeman, Doucouliagos and
Laroche, 2017).
Several reasons are attached with the employees for joining a union. Among those, three
factors are apparent. Those include the advantages that employees can get by joining any
union, related to the financial aspect of the job, and intention to impact the facets of the work
culture or environment. In spite of the several benefits, Australian union has declined in the
recent time. () has also stated that the unionism has found the essential place in the Australian
community between the year 1921 and between the mid-1950. Besides this, at the time of
great depression, the union membership has never tumbled below the percentage of 42.5
(Hodder and Kretsos, 2015).
It is true that time had changed significantly. It is found that, two decades ago only half of the
employees were the part of the union. In recent time, the rate of union is only 23%. Even the
public sector has faced the decline in the density of union. In the era of computerization,
feminization, de-unionization, and casualization is the most significant changing that out the
strike in the labour market from past many years. The sign of fall in union number can be the
rarity of strikes. The density of union had decreased due to the increment in scepticism of the
worker toward it. Attitude also seeks to reflect the power of union (Schulze-Cleven, 2017).
The second argument made regarding this is the de-d was the outcome of decrease in the real
wages. The most significant factor in the de unionization in Australia has been the transition
in the legal systems that are regulating union. Borland & Coelli (2016) also stated that
between the 1990 and 1995, the orthodox government in almost five state from six state has
brought the effect in legislation intended to promote the individual power of bargaining,
banning the mandatory unionisation and introducing the changes to non- award coverage
quite easy. This process was similar to the place that took place in the year 1920 when the
various state labour governments has enforced the law in favour of mandatory unionism, and
wage arbitration results in the increase in the membership of union. During the half of 1980,
around 50 per cent of the union members were needed to be members due to their
employment condition (Murray, 2017). Then in the 1990, not any person were longer bound
to be the member, the vast promotion has chosen to give up their membership. At this time,
unions that tend to bore the highest burnt were those person who depends highly on the
mandatory laws of union. Due to this, the new law was started in the year 1996 when
government has removed the mandatory unionism (Wood, 2017).