The fields of structural changes

Running head: DECLINE IN TRADE UNION MEMBERSHIP IN AUSTRALIA
DECLINE IN TRADE UNION MEMBERSHIP IN AUSTRALIA
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DECLINE IN TRADE UNION MEMBERSHIP IN AUSTRALIA1
Introduction
Trade union can be defined as an association consisting of workers who form legal
units acting as a bargaining and legal representative for units of employees. Trade unions
were formed in Australia by non-convict laborers during the 1820s. These trade unions
offered various means of aid to employees such as in cases of death, illness, unemployment
or social welfare assistance like petitions for improvement of wages and conditions of
working. However, with increased effects of deregulation, privatization and alterations in
industrial laws, memberships in trade unions of Australia faced a steady decline since the
1980s (Wright & Lansbury 2014). This essay will analyze he various causes of such decline
in trade union membership in Australia. Such causes can be identified in the fields of
structural changes, institutional factors and new strategies of the employers. In conclusion it
is mentioned how the reforms in governmental laws and strategies of the employers have
been able to achieve employee satisfaction.
Discussion
Trade union membership in Australia have facilitated the establishment of standard
wage levels across the nation. The rights of the employees and workers are essential matters
of concern for these trade unions who ensure their protection from unlawful activities and
regulations of the owners. However, there are several factors that have led to the steady
decline of membership in the trade unions of Australia. The first loss of trade union
membership occurred during the Great Depression of 1930s owing to the First World War.
However, the later influence of the Communist movement aided in the strengthening of the
labor movement. During the 20th century, the trade unions started faces several challenges
that eventually led to a decline in its membership. The challenges faced by the trade unions of
Australia leading to a decline in membership can be listed as follows:

DECLINE IN TRADE UNION MEMBERSHIP IN AUSTRALIA2
Structural Changes
Several economic reforms in Australia have led to structural changes in the economy
and the labor market. Such reforms include the increased focus on opening the markets to an
increased competition in traded, governmental and financial sectors. However, these reforms
have led to an increase in the living standards of the individuals through improvements in
demand management. The structural changes in the labor market of Australia owing to the
economic reforms include casualization of labor, growth in part time working, growth in
various forms of industries providing occupations, which have a persistent low level of union
density, and the increase in self-employment along with alternative arrangements of
employment (Bishop & Cassidy 2017). The casualization of labor in Australia has led to a
decline in permanent positions of employment and an increase in contract and casual
positions. Such contractual employment does not provided payment opportunities to the
employees for annual or sick leaves. Moreover, the trends of casualization of labor has also
increased the rate of part time employment in the country, disallowing the memberships in
trade unions (Benassi & Dorigatti 2015). Self-employment structures refers to organizations
with owners and managers but no employees. The proportion of self-employed workforce has
increased steadily in the past decades, thereby providing negligible contribution to
memberships in trade unions.
The emergence and growth of employment opportunities in the service oriented
industry has further reduced the employee membership in trade unions. It is so because the
service sector employs workers, who are highly educated (Storey 2016). Their educational
advantage ascertains their capability to address their grievances on their own. The service
sector further provides various methods for the redressal of the grievances or needs of the
employees including an efficiently functioning Human Resources Management. Thus, such