Employment Relations: Trade Unions in Australia Essay

This essay examines the significant role trade unions play in Australia's commerce industry, highlighting their historical impact on improving worker standards, advocating for fair pay, and ensuring better health and safety regulations. Despite these achievements, the essay analyzes the concerning decline in trade union membership, exploring contributing factors such as the rise of casual employment, structural changes in the labor market, and issues of governance within the unions themselves. The research delves into the implications of these trends, offering recommendations for revitalizing the role of trade unions in protecting employee rights and fostering a more equitable work environment. The analysis includes discussions of the Australian Council of Trade Unions (ACTU), the Workplace Relations Act, and statistical data illustrating the decline in union density. The essay also examines how factors such as corruption, lack of democratic leadership, and the shift towards part-time employment have collectively undermined the strength and influence of trade unions. Finally, the essay suggests potential solutions, including promoting democratic leadership, addressing gender inequality, and reforming government policies to support collective bargaining.

Running Head: EMPLOYEMENT REALTIONS
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TRADE UNION- AUSTRALIA
ESSAY
Student
8/24/2019

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In the commerce industry of Australia, unions hold a great significance as this body has not only
upgraded the standards of workers but also supported them to stand for their rights. Standard
working hours for workers, fair pay for women and better health and safety rule and regulations,
are some of the initiatives take by the Union for the laborers, Through the powerful campaigns,
Unions have protected the rights of the workers and created its place in this industry. However,
despite such achievements, there is a tremendous downfall in the trade union membership of
Australia. Today the condition of the union has become worse. There are several reasons for its
declining. However, before conducting brief research regarding its cause, it is very important to
understand “trade union and their declining status in Australia.
A trade union, which is also recognized as labor unions, is the cooperative body that is
established by the workers of the same domain to supports, take action and work in the interest
of the people who suffer any kind of discrimination in the organization (Economics Times ,
2019). It means with unity members solve the issues related to the equal pay, flexible and
positive working conditions, standard working hours and incentives. Unions act as representative
to all the workers and bridges a gap between managers and workers. Unions have been formed
with objectives to look after the issues of labors, which are being faced by them at the
organizational level. The core element of this union is that it is the collective voices of all the
employees, which are put forward against the management. They are considered a powerful
intermediate, which conducts the smooth functioning of communication between both parties.
The key areas where the union majorly focuses are the collective negotiations, settlement related
to safety, improvements in the labor laws. In the association, the staff members generally consist
of factory workers or employees who are selected by the existing members. The purpose of trade
unions is to maintain and improve the business environment. Unions, understand the grievance,

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look after the common issues through the complaint procedures, and create awareness regarding
any kind of discrimination and exploitation faced by the employees in the management (Peetz,
2015).
In Australia, the Australian Council of Trade Unions (ACTU) and governing council of trade
union movement are protecting the rights of employees since 1927. The Unions have played a
vital role as it is constructed to ban child labor, upgrade the safety measures, improve the wage
system of the companies and promote the interest of Australian employees, thus raising the
living standard of the community (The Sydney Morning Herald , 2014). Until 1981, more than
2.5 million employees from all over Australia had joined trade union membership. Despite such
growth of unionism in Australia, the impact and importance of the Australian trade union
movement is decreasing in masses. Josh Bornstein who is an employment attorney stated that, as
compared to developed countries like the UK, China the association in Australia had a
tremendous downfall. He further said that the labor union has been undergoing a tragic
breakdown in its membership. It has also been stated that if unions were once called as problem-
solver, then their collision has resulted in numerous problems. In the declination of trade union
membership, the solution has been provided through Pluralism theory where the emphasized has
been put ion the interest of the employees (Pandey, 2018).
Its major decline has been observed in 1990 when ACTU conducted a drive to promote
education and training systems in the commerce industry. Further in 1996, realizing the
conditions of employees, Howard Government reformed the Workplace Relations Act, which
limited union capability to shape and attract the interest of members. Due to such issues, the
foundation of the union was shaken (Tapia et al., 2015). From 1998, the experts have observed a

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significant decline in the union population. In 1998, the percentage of trade union was 38.357,
which declined 27.767 in 2015 (OCED, 2015).
It can be observed that from the last 40 years members have been declined to 1.6 million.
During the same period, the share of union density has by 37%. Such collapse is due to young
and new employees who are now less likely to join the union as compared to the permanent
employee, there is a major shift of members into the education industry (The Sydney Morning
Herald , 2014). Such catastrophe can been seen in all sectors of industry. In primary sector,
where the labour association was only 1.9% (2016) in the total share of union density. Moreover,
downfall has challenged the relationship between both parties has created a There are several
other reasons, which will be discussed in the report (OCED, 2019).
Reasons:
Casual Employment
The rise in part-time and casual employment across many parts of the commerce industry and the
decrease in permanent jobs in total share of employment are one of the reasons for the decline in
unionization in Australia. The causes of such decline is a great casualization of labors. Moreover,
Youngsters are least interested to be a part of the union than the older employees. In the total
share of employment in the union membership, only 6 %share is of 15-24 years of laborer’s
whereas, 13% of the share is possessed by workers from 25-44 years of age and 19% of the
employees are from 45 to 64 of age. With the growth of part-time employment, union
membership is declining. According to the ABS (Australian Bureau of Statistics) about 57% of

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the young worker, aged 15-24 are indulged in part-time and causal part-time jobs as compared to
other workers who take such jobs (APH, 2018). As per the statistics of published in August
2016,in part-time and full employment employees, there is huge difference between the union
members with paid leave ( FTE 1150.2%) and without leave ( FTE52.7%)
Casual and part-time employment has not only increased in a particular area but has increased in
different sectors of the commerce industry like in the industry general contractor hires sub-
contractor to conduct a specific part of the task rather than the whole task, in a production
company. The reason of decline can also be considered to be as exposure of unionized enterprise
to the non-unionized companies, which has led to the strict restrictions on the rights of union
members, and reputation got jeopardized due to increment unethical practices. Mrs. Michele
O’Neil who is president of the Australian Council of Trade Union also said that the development
casual employment opportunities have limited the scope of equality in the organizations which
has made it difficult for the employees to stand for the rights (Bowden, 2011).
Structural change: As per the thoughts presented by Philip Lowe, who is a governor of
RBA(Reserve Bank of Australia ), structural transformation in the labor industry like the
emergence of advanced technology in the environment has led to increment in more part-time
and casual employment opportunities for the citizens of Australia. Today it has also been said
that trade unions are no longer required to protect the laws and rights of the employees as many
companies are bringing changes in their policies and procedures of conducting the operations.
Moreover, today, companies are introducing new laws to deal with the issues of workers, thus
uplifting the interest of the workers (Addison, 2014). The structural changes have created
obstacles in the operations of trade unions in Australia as labor unions have started losing their
customers due to the recessions in the manufacturing industry and other industrial revolution.

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Another reason was that may union leaders started taking interest in the politics and political
campaigns, where through the violence they were pressurizing the government takes actions in
their interest. Such actions diverted them from their main responsibilities towards the
employees. It has created instability as leaders were not able to relate to the main mission
(Cullinane & Dundon, 2012).
From the past, it can be observed that trade union contribution to the industry has made the
condition of the workers better than before and has upgraded their living standards. However,
despite such decline, the industrial relations of both the parties are now maintained through strict
legalization, rules, and the company now striving hard to provide the best working environment
to the employees (Burgess et al., 2002).
Governance:
Governance is considered to be another issue that has led to the destruction of trade unions in
Australia (Roy & Ray, 1998). Union leaders dominating and abusing attitude towards the
employees can be considered a decline in the members of the union as leaders misbehave and
exploit the needs of the workers. In the unionization, corruption has been observed at every level
as Leaders initiates the funding system in the association by deceiving the workers. Even the lack
of freedom and anti-democratic system in the association has weakened the unity of employees.
According to Roy Morgan's study, there is a drop of about 1/3 union leaders who fulfill their
responsibilities with honesty and integrity (Haile, 2016). Moreover, according to the study
conducted in 2012 female’s members of the association are understated by the male members of
the union. They have also indicated that in the working environment of unions, women’s at all
the level have faced discrimination and sexism. This changes the outlook of how men and

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women are symbolized within the union (Peetz, 1998). Due to such issues, the population of
women has been declined in the union. Moreover, from the 1980 elimination of government
power, the growth of anti-union strategies means monopolistic operations of unions, as well as
development in the structure of industry and unions, has led to a reduction in industrial labor
(Cooper, 2016).Due to increase in corruption and unethical activities the union density has fallen
by 0.5%
According to the experts, today unions have lost its value as they have become baseless and has
been indulged in unethical practices like corruption and deception. Unions misuse their powers
and intentionally protect the interest of poor performers. While ensuring the interest of the
employees Malcolm Turnbull and Michelle Cash who is an employment minister indicated that
unions who are inducing the employs with the deceiving motive will be convicted and put behind
the bars for 10 years with up to 9,00,00 fine (Patty , 2017).
Recommendations:
The presence of trade union is very essential for the continuous development of the industry. Its
stability can be maintained by promoting the norm of “one union in one corporate culture” so
that the union conflicts can be eradicated from the system of the management. Through the
training programs, union members must be exposed to the advanced technology. Moreover, the
members of the unions must create awareness of unity among the casual employers, so the
personnel can effectively participate and contribute in the labor union. Another suggestions is
that, there should be democratic leadership in the union and the employees must be involved in
the decision making process. Labour union must promote the interest of the women working as a
members of the union and there should be a separate department for the women, which will look

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after women segment of union and will stand for the rights of the female. Trade unions must
promote unit in the system For the development of employees, Government must reform liberal
policies for the advancement of trade unions. Government authority must promote collective
bargaining and voluntary solve the conflicts and issues (Cooper, 2005).
From the above observation, it can be concluded that trade unions play a critical role in
protecting the rights of the employees. It is an association that not only promotes the interest of
the employees but also uplifts their status. The employees of the same domain form this
cooperative body. They solve the issue of the employees related to equality in the workplace,
working hours, rights, and incentives. A trade union is the voice of multiple employees who put
against the management. Like this, a trade union in Australia holds a great significance.
However, the value of ACTU is declining. There was a time when 2.5 million employees had
joined this union but due to sudden calamity, only 1.5 million employees are left. Such downfall
is due to growth in casual employment, change in the structure of union and governance.

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