An Analysis of the Decline in Trade Union Membership in Australia

This essay analyzes the decline in trade union membership in Australia, examining the multifaceted causes behind this trend. It identifies structural changes in the economy, such as deregulation, privatization, and alterations in industrial laws, as key factors. Institutional factors, including legislative changes affecting union recognition and compulsory unionism, are also explored. Furthermore, the essay investigates new strategies employed by employers, such as improved communication, problem resolution mechanisms, and fair payment practices, which have diminished the perceived need for trade union membership. The discussion encompasses the impact of casualization of labor, the growth of the service sector, and the role of the Fair Work Act of 2009. The conclusion emphasizes how these factors, along with the evolving labor market, have influenced union membership and the changing relationship between employers and employees in Australia. The essay highlights the increasing efficiency of organizations and governmental laws in protecting the interests of employees.

Running head: DECLINE IN TRADE UNION MEMBERSHIP IN AUSTRALIA
DECLINE IN TRADE UNION MEMBERSHIP IN AUSTRALIA
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1DECLINE IN TRADE UNION MEMBERSHIP IN AUSTRALIA
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:

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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

3DECLINE IN TRADE UNION MEMBERSHIP IN AUSTRALIA
facilities provided by the service sector along with the educational competency of the
workers negates the need for memberships in trade unions.
Figure 1: Growth of service based industry in Australia
(Source: Austrade.gov.au 2019)
Institutional Factors
Several institutional factors in Australia have led to the steady reduction in union
memberships. Such institutional factors consist of legislative changes affecting union
membership in an adverse manner (Jaumotte & Osorio 2015). The legislative changes include
de-collectivizing employment relationship along with a withdrawal of recognition in unions.
The de-collectivization process involves a denial to workers’ access of resources for
collective powers. During the formation of new establishments and subsidiaries along with
the purchase of non‐union subsidiaries, the employers have resisted unionization and

4DECLINE IN TRADE UNION MEMBERSHIP IN AUSTRALIA
recognition. Compulsory unionism has also been faced with consistent reduction. This factor
clearly determines the challenges of the unions being increasingly dependent on the
legislative provisions of the country. To state an example, the union groups in New Zealand
were observed to be dependent on compulsory provisions for unions and legislations of the
country, thereby making them vulnerable to the radical changes in legislations (Kelsey 2015).
Furthermore, with the emergence of the Fair Work Act of 2009, the legislation of the
Australian government guarantees the protection of the employees, thereby reducing the
importance of trade unions for the same function (Whiteford 2014). This Act entails within
its purview the scopes of work environment, health and safety of the employees and
protection against discrimination in the work place. The Act also provides terms and
conditions for the employees who have been hired on a contractual or part-time basis.
Therefore, the governmental laws having encompassed regulations to protect the interests of
the employees has resulted in their participation in trade unions.
New Strategies of the Employers
Employers in Australia have developed new strategies to ensure the protection of the
employees and led to the negation of trade union memberships of the workers. The new
strategies implemented by the employers is a problem that has been recognized as a
propagating factor in the decline of union density in recent times. Unions have been
considered as institutions by the traditional scholars of industry relations. However, such a
perspective ignores the scope of employer strategies and attitudes towards the unions as an
essential factor determining trade union membership. The different strategies incorporated by
the employers leading to a decline in union membership include the following aspects:
 Communication – Employers have developed efficient means of communication
within the organizational scope so as to facilitate the employees to address their
requirements and speak about their grievances. The policies of the organizations are

5DECLINE IN TRADE UNION MEMBERSHIP IN AUSTRALIA
also communicated to the employees adequately so that they can recognize the
benefits that are provided (Shockley-Zalabak 2014). Moreover, the interests of the
employees are also extensively integrated with the interests of the organization so as
to ensure employee satisfaction, thereby allowing the organization to maximize their
productivity and profitability. The managers and leaders of the organization further
involve the employees to take organizational decisions aimed at the development of
the organization, thereby preventing their treatment as third parties, and regarding
them as essential internal stakeholders.
 Provision for problem resolution – Another important strategy incorporated by
employers is the provision for an outlet for problem resolution among the employees.
Protection of the employees in the work environment is ensured through adequate
means of redressal of problems through an efficient system of Human Resource
Management. The redressal of problems within the organizational scope negate the
necessity for intervention of trade unions to solve the issues arising among the
employees. Moreover, such efficient methods of problem resolution further include
the protection of the employees from discrimination in culturally diverse workplaces.
These facilities allow the employees to remain focused in their personal as well as
organizational goals, thereby ensuring the organization’s gain of employee trust.
 Development of managers – The employers also ensure effective leadership form the
managers through training. This further allows the managers to effectively
communicate with the employees to locate any discrepancies that may lead to
grievances (Saxena 2014). On the occasion of such discrepancies, the managers also
develop means so that the interests of the employees are protected.
 Fair payment – Another strategy adopted by employers is a fairness in payment for
different employees irrespective of their gender, class, religion or cultural background

6DECLINE IN TRADE UNION MEMBERSHIP IN AUSTRALIA
(Bender & Elliott 2018). This prevents the rise of grievances regarding wage gaps at
the very root level, thereby ensuring employee satisfaction. This entails the
expectation of the employees to be paid adequately for the work that they perform in
the organization and the understanding of the employees regarding the work time.
Equality in wages is ensured through annual market surveys by the organizations.
This strategy adopted by the employers has further led to the decline in trade union
membership as the requirements and interests of the employees are fulfilled within the
organizational structure.
Figure 2: Trends in trade union membership in Australia.
(Source: Aph.gov.au 2019)
Conclusion
The above analysis of the causes of decline in trade union memberships in Australia
suggests how the developing trends in the labor market have been affected by governmental
and institutional laws, structural changes and new strategies adopted by the employers.
Furthermore, the analysis also sheds light upon the rising efficiency of the organizations and
governmental laws in protecting the interests of the employees. Such interests include a

7DECLINE IN TRADE UNION MEMBERSHIP IN AUSTRALIA
fairness in wage provided by the organization on the basis of the works performed by the
employees and their work time. Furthermore, protection of employee interests also
incorporates the prevention of discrimination on the basis of gender, caste, color, race,
religion, ethnicity and cultural background. This requirement of protection against
discrimination has developed due to rapid globalization and the expansion of industries into
various countries. Trade unions are operative only in the respective countries, catering to the
needs of local employees in the industries. However, due to the rising organizational
efficiency and adequacy of Human Resource Management systems, the interests of the
employees are protected globally within the scope of the organizational structure. Efficient
training of the leaders further facilitates the integration of the interests of the employees with
the interests of the organization and its stakeholders, thereby building an ethical
organizational community and ensuring employee satisfaction.

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References
Aph.gov.au. (2019). Trends in union membership in Australia – Parliament of Australia.
Retrieved 26 August 2019, from
https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/
Parliamentary_Library/pubs/rp/rp1819/UnionMembership
Austrade.gov.au. (2019). 2017-18 GDP growth rate of 2.9 per cent confirms the resilience of
our economy. Retrieved 26 August 2019, from
https://www.austrade.gov.au/news/economic-analysis/2017-18-gdp-growth-rate-of-2-
9-per-cent-confirms-the-resilience-of-our-economy
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Casualization of Work: The IG M etall Campaign for Agency Workers. British
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Bender, K. A., & Elliott, R. F. (2018). Decentralised pay setting: A study of the outcomes of
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