University of Salford

MSc Human Resource Management and Development

Comparative Industrial Relations 29166 (Assignment)

Christopher Clarke

Roll Number: @00193776

Word Count: 2092

Is Trade Unionism in Irreversible Decline? Discuss with Reference to Different Countries of your Choice.
There are numerous examples of the decline in power and influence of trade unions across the world. This essay examines whether trade unionism is in irreversible decline, focusing in particular on the United Kingdom and Japan. For the purpose of this essay, a trade union is defined as A labour union of craftspeople or workers in related crafts, as distinguished from general workers or a union including all workers in an industry (dictionary.reference, 2011).

The essay begins with a quick analysis of trade unionism within Britain and Japan, highlighting the actual decline in the second half of the twentieth century of the influence and recognition of trade unions within both countries. The essay then moves onto discussing whether this decline is irreversible in either country before concluding that although there are certain similarities in the decline of trade unionism in both countries, more concerted efforts by the Trade Union Congress (TUC) in Britain to rebrand itself to workers and to recruit members has resulted in more opportunity for a reversal in decline in Britain than in Japan.

In the second half of the twentieth century, trade unionism in Britain suffered from a severe decline in both recognition and membership. During the 1980s and 1990s trade union membership fell by 5 million (Smith, Williams, 2006, p179). Union membership peaked at just over 13.2 million members in 1979, representing 57% of those in employment. However

by 2000 membership had declined to 7.8 million, a 40% decline, and a representation of just 29% of the workforce (Lewis, Saunders, Thornhill, 2003, p152).

Paul Edwards (2003, p243) has tried to explain the decline along a political viewpoint claiming that a neo-liberal assault weakened trade unionism in terms of coverage and influence within the workplace. Whilst this argument has some merit, it is too narrow an explanation to explain the increasing apathy towards unions. Certainly, Margaret Thatchers privatization policies hurt trade unionism in the United Kingdom during the second half of the twentieth century. Bamber and Landsbury (1998, p55) have correctly suggested that intense privatization resulted in many firms abandoning policies of being a good employer.

Consequently different strategic goals and in particular a more profit orientated approach led to many employers resisting and marginalising unions. Previously, left-wing Labour governments that trade unions supported were open to negotiation. However, Thatchers right-wing government, who had few ties to trade unions fought back and resisted strikes. Consequently militancy tactics, used by unions representing workers for example at British Leyland, failed and strikes collapsed, resulting in the denting of trust in the power of trade unions to deliver workers protection (University of Salford lecture, 9/7/11).

However trade unionism was not merely weakened along political lines. General industrial restructuring led to the closure of many mature or declining industries in the United Kingdom. It was in these older industries that trade unions generally had the bedrock of their support as they typically employed male, full time, manual workers who were significantly more likely to be a member of a union (Lewis, Saunders, Thornhill, 2003, p154).

With this power base diminishing the downward spiral of membership in Britain is easy to trace.

Similarly in Japan trade unions have struggled to cope with challenging economic and industrial restructuring in the last 30 years. Japans trade union system is unique in comparison to the rest of the world. Whilst the United Kingdom for example has a few trade unions, Japans trade union membership is spread amongst around 71,000 unions (University of Salford lecture, 27/6/11).

Additionally, the structure of the Japanese economy formed in the post World War II era was unique and based on systems of honour and guarantees to employees. These guarantees included lifetime employment, where workers were guaranteed a job for life and seniority based wages where pay would be guaranteed to increase in conjunction with time spent at a company (University of Salford lecture, 27/6/11). However it is the commitment to provide such privileges to workers that has presented Japanese trade unions with persistent problems. These privileges were awarded to Japanese workers through a boom period for Japanese industry between the mid 1950s and the mid 1980s where it was able to take advantage of its low military expenditure and the post-war rebuilding efforts of its competitors (University of Salford lecture, 27/6/11).

However, economic hardships within Japan in the last 30 years have meant that trade unions have faced an ongoing battle to keep the privileges that their workers had previously enjoyed. As a result, trade unions have had to cede to employers about employment guarantees. This has damaged the credibility of trade unions in Japan because many

guarantees that workers have enjoyed turned out to be entirely superficial. For example, lifetime employment was only available to full time staff (Eaton, 2000, p28). So firms unsure about future demand developed a policy of only hiring temporary staff. Also, as witnessed with Nissan, the guarantee ends when there is a threat to the survival of the company. Additionally with the seniority based wages, there was much conjecture in the promises too. Increase in wages was tied to climbing the ladder. In other words people were encouraged to compete. Basic salary was low so guarantees of wage increases were irrelevant when the majority of the overall wage comes from bonuses (Eaton, 2000, p27). Consequently, trade unions have not been successful in coping with industrial changes in Japan in the last 30 years and protecting their workers from experiencing a loss of many of their privileges. In 1949 there were 6.6 million union members, a peak density of 56%. However after 1970, union membership stagnated as worker apathy increased and by the mid 1990s had declined to around 23%. (Bamber, Landsbury, 1998, p253). Thus, trade unions in both countries have struggled to remain relevant in modern industrial relations. However although their decline is mirrored and beyond doubt, their opportunities for future growth differ significantly in the United Kingdom in relation to Japan. In the United Kingdom there has been a concerted effort for trade unions to fight back into the workplace. Aided by a relatively strong governing body, the TUC, unions have begun to focus a great deal more of their resources in advertising and recruitment (Blyton, Turnbull, 2004, p164). The TUC has also taken on a wider rebranding of itself, giving itself a new mission and logo (Rose, 2008, p178). This has given the body a new sense of purpose and a direction for future growth. This can be witnessed by attempts to reform its internal

structure in order to facilitate easier external relations, for example with employers, the government and other pressure groups (Rose, 2008, p182).

The need for this more aggressive and militant approach is highlighted by Lewis, Saunders and Thornhill (2003, p154) who suggest According to the WERS series trade union recognition had fallen significantly through the 1980s and 1990s. In 1984 trade unions were recognized in 66% of workplaces. By 1998 this had fallen to 42% of workplaces. Without a presence in the workplace, unions will struggle to make recruitment initiatives a success. Recent government reforms however have given hope to trade unions aiming to increase their presence in the workplace. The recent reign of the Labour government from 1997 to 2010 saw a change in attitude for unions, represented by the Employment Relations Act of 1999 which introduced provisions for the statuary recognition of trade unions (Lewis, Saunders, Thornhill, 2008, p158). Thus Lewis et al. offers a reverse to the evidence provided by Rose, showing that in fact, in recognition terms at least, trade unions in Britain are not in irreversible decline.

However although there are signs that trade unions in the United Kingdom are fighting back there are still areas that are impeding their progress. On the political side, the recent election of the coalition government has brought new challenges to the trade union movement. The coalition has already shown that it is willing to fight unions on issues such as pensions and pay cuts by facing strikes by unions such as UNISON this year. Additionally, unions still face the problem of a high density of members from a few sources. These sources still tend to be older male workers. Lewis, Saunders and Thornhill (2008, p155) agree with this contention suggesting that trade unions will continue to decline unless they

reach out to younger workers. Edwards (2003, p244) agrees with this assertion claiming that unions have yet to shed the pattern of male dominance that continues to inform activity at all levels, and have failed to address the interests of young workers. Only when these issues are resolved will unions be able to extend further into the private sector in terms of union participation.

However, there is evidence of small victories for the movement and progress into the workplace. Blyton and Turnbull (2004, p169) contend, The issues facing the trade union movement in the new millennium is certainly considerable but not insurmountable. Membership continues to decline but unions continue to attract new members and most workers tend to hold positive views about unions. Rose (2008, p186) also highlights the fact that there have been important small increases amongst groups generally resistant to membership. Therefore it is evident that trade unionism in the United Kingdom is not in irreversible decline. Although it is still too early to fully judge how the concerted efforts by the TUC have been in improving the standing of trade unions in the workplace it is clear through the progress already seen that opportunities for progression exist.

By contrast in Japan, trade unions are in a much bigger state of flux. Trade unions relied on a workforce that trusted their power to protect workplace guarantees such as lifetime employment and seniority based wages. The increase in union density from 3.2% in 1945 to 55.8% in 1949, shows just how popular trade unions had become to the Japanese workforce (Bamber, Landsbury, 1998, p253). However the social structure of Japan is currently affecting its economy and its trade unions. There is an aging labour force which means that

under old Japanese seniority based wages, a significant proportion of the labour force is on high wages (University of Salford lecture, 27/6/11). Many young people have now come into a position of power as a result and are demanding higher wages from their prospective employers. This has created a fracture at the heart of the system and individual employees now have the power as opposed to the trade unions. Therefore, notions of collective bargaining have suffered as Japanese employees fight for the best package they can get as Japanese industry continues to restructure in the wake of increased foreign competition (University of Salford lecture, 27/6/11). The idea of Japan as a model for economic policy has collapsed because of huge debt problems that have threatened Japanese banks and other financial institutions (Eaton, 2000m p31). Therefore, unlike in the United Kingdom there is no concerted effort by a main governing body to reverse the decline of trade union presence in the Japanese workplace. In fact Eaton 2000, p50) suggests that trade unions have been so successful in Japan, significantly increasing wages for workers, that employers have been given more incentive to make a concerted effort to rid them the workplace of union power. Bamber and Landsbury (1998, p271) highlight the importance of Japanese industry to eliminate their barriers to growth and invest in various innovations. Until industry can form the Gales of creative destruction and regain competitive advantage then it will not be able to provide its workers with the guarantees they previously held. Consequently as industry will be unwilling to cede to concessions, trade unions will struggle to remain relevant to workers. This essay has highlighted the decline and the potential opportunities in the United Kingdom and Japan. Whilst it is beyond doubt that both countries have seen a huge decline in the

power and influence in their unions, it is in the United Kingdom where the biggest potential for reinvigoration of the unions lies. Importantly there is recent evidence in the United Kingdom that many workers are willing to join unions if there is opportunity or incentive to be had (Blyton, Turnbull, 2004, p169). This is certainly not evidence of trade unionism in irreversible decline. However the Japanese system of trade unionism is still suffering in the wake of a period of intense industrial and economic restructuring in the last 30 years. Without a concerted effort by unions to reach out to workers and regain their credibility they will continue to be increasingly marginalised in the Japanese workplace.

Bibliography:
-Adam-Smith, D. Williams, S. (2006) Contemporary Employment Relations. Oxford: Oxford University Press -Bamber, G. Landsbury, R. (1998) International and Comparative Employment Relations. London: Sage Publications -Blyton, P. Turnbull, P. (2004). The Dynamics of Employee Relations. Basingstoke: Palgrave Macmillan -Eaton, J. (2000). Comparative Employment Relations. Oxford: Polity Press -Edwards, P. (2003). Industrial Relations. Oxford: Blackwell Publishing -Lewis, P. Saunders, M. Thornhill, A. (2003) Employee Relations.ssex: Prentice Hall -Rose, E. (2008). Employment Relations. London: Pearson Education. -Trade Union Definition, Retrieved 26/7/11, from, http://dictionary.reference.com/browse/trade+union -University of Salford Lecture: Industrial Relations in Japan: 27/6/11 -University of Salford Presentation Lecture: Trade Unions: 9/7/11