Analysis of the Decline in Union Membership in Australia

This report investigates the significant decline in union membership within Australia over the past 40 years, addressing the request of the Australian Hipster Union (AHU) CEO, Mr. Soli Darity. The report outlines the magnitude of the decline, presenting statistical data to illustrate the diminishing presence of unions in the Australian workforce. It delves into the academic research and commentaries to identify the key antecedents and consequences of this trend. The analysis encompasses various factors contributing to the decline, such as changing attitudes towards unions, economic restructuring, legislative changes, and the role of management. Furthermore, the report explores the impact of declining union membership on industrial relations, labor laws, and the strategies of both employers and employees. The report draws upon at least twelve academic references in APA style to support its arguments and provide a comprehensive understanding of the issue.

Running head: DECLINE IN UNION MEMBERSHIP IN AUSTRALIA
Decline in Union Membership in Australia
Name of the student
Name of the University
Author note

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Introduction
Trade union refers to organization of workers within same skilled occupation who
come together for securing that all the members get favourable wages along with other
working conditions. They bargain with employers so that all the employees get the wages and
the right kind of the working conditions that can work for the welfare of employees. It
regulates relation in between the workers and employers and they possess special rights that
helps them in taking care of rights of employees. There have been a decline in number of the
union members within Australia from 2.5 million in the year 1976 to that of 1.5 million in the
year 2016. Union member share of all the employees have fallen from 51 % to that of 14 % in
between the years 1976-2016 (Aph.gov.au., 2020). This essay throws light on the magnitude
of decline of union membership within Australia over the course of the last 40 years. This
essay elaborates on the causes and the consequences of the decline of union membership
within Australia.
Discussion
There have been collapse of the union membership of Australia on account of gulf
that exists between the trade unions and that of working class. The unions present in Australia
have emerged to become bureaucratic shells which is viewed by hostility by a large number
of workers in Australia. It have been brought out by Australian Bureau of Statistics (ABS)
that the national union membership is 15 % that shows steep decline in union membership in
Australia. Highest density of union membership have been found to be at 25.8 % which is
second wealthiest fifth of working population of Australia. They have been found to have the
annual income in between $ 80,000 and that of $ 99,000. It have been found that the
individuals who are in public administration have more chances of being union members
when compared to average working population (Wsws.org., 2020). It was brought out by

2DECLINE IN UNION MEMBERSHIP IN AUSTRALIA
ABS that only 11 % of the workers who are employed within private sector are in the union.
It was found that among construction workers rate of unionisation is around 11.5 %. The
membership have been found to be lowest among poorest section of workers who had the
income in between $ 20,000 and $ 39,000. It bears testimony to the fact that does not show
the interest in plight of exploited section of working class. It was found that union
membership was very low among the young people and 6.9 % of workers who were under 25
belonged to the union. The ratio have been found to be 12.3 % among the people who were of
the age 25-34 (Reuters.com., 2020). There are a large number of young workers in Australia
who have been consigned to the low-paid job that have given rise to the dissatisfaction
among the young people in Australia. State which have lowest proportion of the union
membership have been found to be South Australia where only 14.9 % of population belongs
to the union. South Australia have been found to have highest unemployment rate within the
framework of the country. Unions which are present in South Australia have made the
collaboration with significant employers that have destroyed large swathe of the industry in
Australia.
It have been brought out by ABS data that union density of the employed males have
fallen from that of 43 % in the year 1992 to 13 % in year 2016. The union density for the
women who were employed have decreased from 35 % to that of 16 % in 2016. The number
of female union members have been found to be more when compared to men on account of
their concentration within the industries which have more chances of being unionized like
nursing (Theguardian.com., 2020). The young workers have less chances of being unionized
when compared to older workers. The young people have less chances of being members of
union as they have the tendency of working on part-time basis when compared to that of
older workers. The ABS data have brought out the fact that 57 % of employees who were of

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the age 15-24 used to work on the part-time basis when compared to 25 % of employees who
were in between 25-44 years.
The union density have declined in last twenty years in various kinds of industries which had
strong union representation like mining and construction. It have also fallen within the
framework of public sector dominated industries like Public Administration along with
Education. Biggest falls have been recorded in Australian Manufacturers Workers Union and
Australian Workers Union.
There are causes that have brought about decline of union membership within
Australia. Unionisation have collapsed violently in Australia when compared to other
countries of the world. There have been disempowerment of unions in Australia which can
prove to be bad for wage outcome of workers. Decline in the union membership rate can be
said to be an expression of complete corporatisation of union that functions as industrial
police force. It helps in representing wealthy and upper middle class officialdom and their
interests are in opposition to the interests of the workers (Bishop & Chan, 2019). The unions
claim to take care of the interest of the workers however they exist to serve their interests in
society. The unions get the income from various kinds of the financial arrangements which
includes a massive amount of the superannuation funds. It have been pointed out by Royal
Commission that the companies have paid union membership dues of that of their workers.
There were some members of union whose wages were cut down which gave rise to the
dissatisfaction among the workers.
Decline of union membership in Australia can be said to be historic shift that took
place on account of transforming into the direct agencies of corporate elite. The unions asked
for limited concession in regard to their members which was under condition of the
nationally-protected economy. It was found that in the era of 1950’s, almost 60 % of the

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workers were the members of the union. Decline in the membership took place in the year
1980 when the unions signed series of the accords with the Keating Labour government for
driving down the wages and the conditions (Dobbie & Nahm, 2018). It created the way for
the elimination of large number of jobs which was in response to the globalisation.
There have been a steady decline of the employment within the industries which used
to have the high concentration of the union membership that have brought about decline of
the union membership of Australia. Employment rate have decreased in car manufacturing
and textile that have created the way for decline of union membership in the country. The
economic re-structuring that have taken place in the country and transition to new forms of
the media have caused the demise of the union membership (Bishop & Chan, 2019). There
was the collapse of that of compulsory unionism in between 1980-1990 that sounded the
death knell for union membership of Australia. There was implementation of Workplace
Relations Act 1996 where the compulsory unionism became illegal for the employees who
had been covered by federal system and for people who were outside federal system. There
were other kinds of legislative changes that prohibited compulsory unionisation which had
been enacted by the state governments.
An important factor that have led to decline of unionisation rate within Australia is
changing attitude in relation to unions. There have been a downward shift in the community
support towards the unions within the framework of industrial world. Public opinion polls of
Australia highlighted the fact that unions are very powerful and they are unable to respond to
needs of members. There are perceptions that exist in society that have brought about decline
of union membership in Australia. Australians do not want to join unions on account of
feeling that exists among workers that they are not required in the unions. The role that is
played by management in the organisations is another damaging factor that have brought
about decline of union membership in Australia (Price & McDonald, 2016). Negative

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perception was created on account of activities that were carried out by Builders Labourers
Federation (BLF). They carried out strikes along with wild demonstrations that have further
antagonised the people in Australia who conceived it to be “thuggery”. Frequent strikes were
instrumental in hitting essential services like transport and food supplies which have angered
the people in Australia (McMurray & Scott, 2017).
The enterprise bargaining have replaced the concept of centralised wage fixing that
have caused the decline of union membership within the framework of Australia. There was a
movement against closed shops in year 1990 that exacerbated process of decline of union
membership in Australia (Foster & Guttmann, 2018). Government of country have not
brought forth policy that can arrest decline of union membership of Australia. They have not
taken recourse to effective union organising policies that have spelled the doom for union
membership in the country.
There are consequences which are manifested in relation to decline of trade union
membership in Australia. It have created new patterns pertaining to industrial relations and it
have changed labour laws in the country. The individual contracts are being promoted by the
employer associations along with the individual employees that can be effective in
developing close relationship existing between employers and workers. The state government
present in Australia have introduced the laws which facilitates usage of individual contracts
as alternative to that of collective regulation. There exists the process of the signing of the
individual contract which can take employees beyond jurisdiction of the tribunal (Saunders &
Tulip, 2019). It have created the way for arbitral system within Australia where the laws
have been introduced which have made compulsory unionism illegal. The changes have been
brought about in the strategy of the employees on account of the decline of the trade union
membership in Australia. The union members are being selected by employers in Australia
who are looking for alternative employment relationships. The role which is played by

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‘demand’ and supply’ factors is undergoing changes in the present age (Gilfillan, 2019). It
have made it easier for the employers of maintaining the non-union workplaces. It have
helped them in gaining the competitive advantage on account of deunionising of workforce.
The monopolies have become rare in Australia and the business are opening themselves to
the competition which have made employers make use of anti-union strategies for gaining the
competitive advantage. It helped the employers in building the positive relationship with the
employees that have worked for the betterment of the organisation (Hodder et al., 2017). The
workforce have evolved to become self-employed in the present age and the contractors who
are present in the small business does not think that union membership is necessary. It have
increased the need of the evolution of the unions so that they can rebuilt themselves that can
help them in staying relevant in the present age (Forsyth, 2017). It have increased the need of
unions of increasing the skills in research and planning so that it can increase their
importance in the present age.
Conclusion
There exists a big difference in between trade unions and that of working class which
have brought about decline pertaining to union membership within Australia. Unions in the
present age have become bureaucratic shells that is regarded with hostility by many workers
in Australia. Australian Bureau of Statistics have brought out with the help of research that
national union membership is at the rate of 15 % which shows its decline in the present age.
The corporatisation have taken place of the unions that have brought about decline of union
membership in Australia. The interests of the unions have become opposed to interest of
workers which have paved the path for decline in relation to union membership within
Australia. Decline in relation to trade union memberships have paved the path for the creation
of individual contracts which have brought employers along with employees together in the

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organisation. It have made the state government to introduce the laws that can safeguard the
workers in the present age.

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References
Aph.gov.au. (2020). Trends in union membership in Australia – Parliament of Australia.
Retrieved 8 April 2020, from
https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/
Parliamentary_Library/pubs/rp/rp1819/UnionMembership
Bishop, J., & Chan, I. (2019). Are There Spillover Effects onto Wage Outcomes in Other
Enterprise Agreements?| RDP 2019-02: Is Declining Union Membership Contributing
to Low Wages Growth?.
Bishop, J., & Chan, I. (2019). Is Declining Union Membership Contributing to Low Wages
Growth? (No. rdp2019-02). Reserve Bank of Australia.
Dobbie, M., & Nahm, D. (2018). The determinants of individual union membership in
Australia: a structural approach using panel data. Economic Papers: A journal of
applied economics and policy, 37(1), 75-91.
Forsyth, A. (2017). Law, politics and ideology: The regulatory response to trade union
corruption in Australia. UNSWLJ, 40, 1336.
Foster, J., & Guttmann, R. (2018). Perceptions of job security in Australia. Bulletin (Reserve
Bank of Australia), 80-99.
Gilfillan, G. (2019). The extent and causes of the wage growth slowdown in Australia.
Hodder, A., Williams, M., Kelly, J., & McCarthy, N. (2017). Does strike action stimulate
trade union membership growth?. British Journal of Industrial Relations, 55(1), 165-
186.

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McMurray, A., & Scott, D. (2017). The Nexus between union membership and workplace
climate. Labour & Industry: a journal of the social and economic relations of
work, 27(2), 131-149.
Price, R., & McDonald, P. (2016). University Student Employment in Germany and Australia
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Reuters.com. (2020). Retrieved 8 April 2020, from https://www.reuters.com/article/us-
australia-economy-wages-analysis/divided-we-fall-australia-labor-unions-slump-may-
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Saunders, T., & Tulip, P. (2019). RDP 2019-02: Is Declining Union Membership
Contributing to Low Wages Growth?.
Theguardian.com. (2020). ALP president says 'deep crisis' in unions must be addressed.
Retrieved 8 April 2020, from
https://www.theguardian.com/australia-news/2018/feb/02/alp-president-says-deep-
crisis-in-unions-must-be-addressed
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April 2020, from https://www.wsws.org/en/articles/2017/01/19/unio-j19.html