An Examination of the Decline of Trade Unions in Australia: Causes

This essay provides a comprehensive analysis of the decline of trade unions in Australia, examining the significant drop in membership since the 1980s. It delves into the functions and importance of trade unions, highlighting their role in representing workers' interests and negotiating on working conditions and wages. The essay explores key factors contributing to this decline, including structural changes in the labor market, employer strategies, and institutional factors, referencing the views of experts like David Peetz. The essay presents data on union density, comparing trends across different sectors, employment statuses, and international contexts, and discusses the impact of factors such as casual employment, the rise of small businesses, and changing employee attitudes toward unions. The analysis considers the impact of union amalgamations, individual-level recruitment, and the changing role of women in the workforce, concluding with a call for strategic reforms to regain public trust and adapt to contemporary market ideologies.

Running Head: DECLINE OF TRADE UNIONS IN AUSTRALIA 0
Decline of Australian Unionism
Student details:

DECLINE OF TRADE UNIONS IN AUSTRALIA 1
The following essay is based on sudden weakening of trade union membership in last
three and a half decades. It explains the functions and importance of trade union membership. As
per the data of Australian bureau of statistics, the trade union membership within Australia has
deteriorated since 1980s. The essay highlights key reasons behind the immediate drop of trade
union membership or density in nation in last thirty-five years. The essay includes the views of
experts like David Peetz over the decline of trade unions density in Australia.
Trade union system refers to community/ committee or group of workers who are works
in an organization and keeps check on the actions of the employers. The members of trade union
seek their interests at workplace by negotiating with employers on payment and working
conditions. Major objectives of trade union are to secure bonus for the employees from the gross
profits produced by organization and to provide legal support to the workers related to the matter
of clashes regarding the working conditions and wage rates. The trade union also focuses on
ensuring stable job role for the workers and resists the pattern of administration, which decrease
job opportunities. In Australia, there is Australian Council of Trade Union, which is the ultimate
body, signifying workers in Australia. The objectives of ACTU are socialization of industries,
ensuring the formulation of working laws within the organization. It also ensures optimum
utilization of Australian resources to maintain employment and ensures basic living standards
(Australian Council of Trade Union, 2019).
It was noticed that the trade union participation has steadily declined since the early
1980s. According to the experts, there are various reasons behind the decline of trade union
membership. David Peetz has described three key factors which have caused sudden decline of
union membership/density: structural change in labor marketplace, response of union members
over the new working strategies developed by employers and most importantly the change in
institutional factors Unions in a Contrary World: The Future of the Australian Trade Union
Movement (Peetz, 1998). The table one represents total quantity of trade union associates in
1990-98. It can be observed that the density of union has continuously declined (see table 1).
Year Members
[million]
Union
Density
[%]
1990 2.66 40.5
1994 2.28 35.0
1995 2.25 32.7
1996 2.19 31.1
1997 2.11 30.3
1998 2.04 28.1

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Table 1
The Table below depicts decrease in the union density in the next eight years from 1990 to 1998
on the grounds of sexual category, employment status and sector.
Table 2 Source: ABS Cat. 6325.0 and 6310.0
UNION DENSITY
Gender Sector Employment Status
Year Males Females Public Private Casual Permanent
1990 45.0 34.6 66.8 30.8 18.8 45.7
1994 39.1 22.9 62.3 26.0 14.7 41.3
1995 35.7 29.1 56.4 25.1 13.9 39.4
1996 33.5 28.1 55.4 24.0 13.1 37.4
1997 33.0 26.9 54.7 23.3 13.8 36.0
1998 30.0 25.8 52.9 21.4 11.6 34.2

DECLINE OF TRADE UNIONS IN AUSTRALIA 3
The table below displays the decline of Australian Union Membership accompanying a chart,
which comprise data of other international industrialized nations. The following data is collected
from the International Labor Organization (ILO). The international labor organization works to
develop policies, plans, and design programs, which promotes decent working conditions for
both males and females. The international labor organization upholds the duty to set reform and
develop labor standards (ILO, 2019).
Table 3 Source: International Labor Organization
International Trends in Union Membership: 1985-95
Nations 1985 1995 85-95
Australia 46 33 -13
Austria 50 43 -7
Canada 35 35 0
Denmark 85 85 0
France 20 15 -5
Germany 33 28 -5
Italy 42 38 -4
Japan 29 24 -5
New Zealand 44 22 -22
Spain 10 16 6
Sweden 85 83 -2
UK 45 33 -12
USA 18 15 -3
Note: Australia's data is 1986-95 and Spain's is 1985-
94

DECLINE OF TRADE UNIONS IN AUSTRALIA 4
Structural change in the labor market was one of the reason which accelerated the decline
of unionism. In Australia there was a growth of casual and part-time employment over this the
increase of low-density industries and engagement schemes reduces the labor’s interest in
building the trade unions. All of the above the diminishing interest of public towards government
sector and emergence of new small scale industries and more dispersed workplaces who paid
handful amount to workers become another cause of decline in the membership of trade unions
(Fairbrother, 2013). According to Peetz, there is no such evidence of weakening of the trade
union membership in year 1999 due to the structural influence. He stated that, the structural
factors of employment witness fluctuations every year. Hence, this cannot be the only reason
behind the decline of trade union membership (Peetz, 1998).
Peetz further elaborated the that it is not clear whether Australia has witnessed more
substantial industrial change or structural change in comparison of other industrialist nations. He
stated that among the ten major “Organisation de coopération et de développement
économiques” (OECD) nations during the period of 1980-1990 the growth in the share of
employment was taken by hotels, restaurants, retailers, financers, businesspersons and real state.
These were the service industries with low density, which provided employment was the second
highest in Australia among all other OECD nations. Whereas Visser’s has made a statement, that
Australia is not one of the countries, which has faced changes or challenges because of inter-
industry changes (Visser, 1992).
Institutional Factors include legal modifications that have a contrary effect on union
association. This comprises the disorganization workers and extraction of recognition of the
union. Another important reason is the decline in obligatory unionism. This exemplifies risks of
trade unions seeming over reliant on lawmaking policies and principles. For instance, the trade
unions of New Zealand are reliant legislative policies and made the unions exposed toward far-
reaching legislative transformation (Bramble, 2008).
New proprietor strategy remained one of the overlooked reasons behind the decline of
density of unions in Australia. The newly emerging employer strategies and the inability of the
workers to take strict actions among these policies remained foremost cause of diminishing trade
union memberships. Scholars like Peetz have always taken unions as institutions and neglected
the way in which employers treat the employees/workers (Ellem, 2001). Later in his book, Peetz

DECLINE OF TRADE UNIONS IN AUSTRALIA 5
explained that Australia faced some anti-unionism in the influence of United States, it has also
taken back steps from the idea of building trade unions. He observed that the unions were unable
to meet the needs of new Australian employees and unions can only serve their purposes if
brings infrastructural and managerial changes (Peetz, 1998).
Other factors behind the failure of trade union membership are union amalgamations- the
merger of two or more unions of trade into single trade union. These merges brought various
changes in the policies and agenda, which were incorporated since the formations of trade unions
(Cooper, 2005). The workers who did not wanted to comply with the mergers left the unions.
Secondly, both the employees and the employers have started focusing over the process of
recruitment on individual level rather than articulating collectively against the employment
rights. The human capital nowadays is smart and understanding, today’s youth is aware of the
working policies of the organization for which they are working or want to work. Therefore,
employees deliver quality work, which is appreciated by the organizations (Sverke, 2019). It
reduces the chances of forming groups or unions. Initially, the Australian trade union comprised
of only males, unions have made restrictions over giving women equal place within
organizations. Nowadays women are equally independent and take stand for themselves (Peetz,
1998). People these days prefer individual solutions to their problems than looking for a union
for protection of their rights and identity. Thus, the females working within organizations were
not actively involved in the trade union decisions and activities; this was one of the powerful
causes behind the fall of trade union membership in Australia (Hogan, 1992). Numerous
Australian surveys which were conducted in Australia by the Australian government found that
there is no fall in the rate of fellow feeling towards the unions, the union members are not
satisfied and disappointed with the service provided by unions. For instance, the ‘Australia
Centre for Industrial Relations Research and Teaching’ (ACIRRT) commissioned by Labor
Council Of New South Wales propounded the same statement after survey (Labor Council of
NSW, 1997).
Lastly, from the above study it becomes clear that there have been three key factors behind the
decline of trade unions in Australia. The overview, which can be drawn out of Peetz analysis, is
that the unions have not totally withdrawn from the society. The employees do not hold

DECLINE OF TRADE UNIONS IN AUSTRALIA 6
confidence on the acts of trade unions. They are unsure about the capacity of union to services to
both who are and are not a part of trade union. Thus, it can be assumed that the role and presence
of trade unions in economy is not devastated rather the structural and functional reforms in the
working of these unions can help them to regain trust among people. The trade union should
work as per the new ideologies prevailing in market; the women should be allowed to actively
participate in the decisions and plans of unions. The union should work upon their strategic
management plans.

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References
Hogan, M. (1992). Municipal Labor in New South Wales. Labour History: A Journal of Labour
and Social History, 72, 123-148.
Peetz, D.1998. Unions in a contrary world: The future of the Australian trade union
movement. Cambridge, U.K.: Cambridge University Press.
Unions NSW.Campaigns. Accessed online https://www.unionsnsw.org.au/. Viewed August 19,
2019.
Visser, J. (1992). The strength of union movements in advanced capital democracies: Social and
organizational variations. The future of labour movements, 43, 17.
ILO. About the ILO. Accessed online
https://www.ilo.org/global/about-the-ilo/lang--en/index.htm. Viewed August 18, 2019.
Ellem, B. (2001).Trade unionism in 2000. The Journal of Industrial Relations, 43(2), 196-218.
Cooper, R. . (2005).Trade unionism in 2004. The Journal of Industrial Relations, 47(2), 202-
211.
Sverke, M. 2019. The future of trade unionism: international perspectives on emerging union
structures. London: Routledge.
Fairbrother, P.2013. In Transnational Trade Unionism. London: Routledge.

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