Decline of British Trade Union Membership: Causes

Decline of British Trade Union Membership: Causes Introduction The purpose of this essay is to analyse the factors leading to rapid decline of British trade union membership in the 1980s and 1990s. According to MacKenzie (2008), unions in industrialised countries have faced challenges associated with labour market restructuring. The restructuring happened due to liberalisation and privatisation of the sectors, downsizing the direct workforce and use of sub-contracts. According to Armstrong (2006) the political condition and change of economic condition with the effect of globalisation are the major factors contributing the change in trade union operation and its decline of membership. There are other factors also, one of them, according to Machin (2000) is union inability or unwillingness to unionise the growing number of new workplaces. The introduction of HRM(human Resource Management) concept and practice within the organisations as observed by Taylor (2003) contributed to the introduction of employee relations as a concept that broadened the study of industrial relations from a union focus to include wider aspects of the employment relationship, including non-unionised workplaces, personal contracts, and socio-emotional, rather than contractual arrangements. It is quite clear there are many factors responsible for the decline of trade union membership. It is important to look at British trade union history briefly to get a perspective of its function, growth and difficulties it is facing. As Stephen Dunn (2009) observed the British trade union experienced extraordinary growth for quarter century till 1950s in terms of its membership, activities and ability to carry on collective bargaining on the backdrop of World War 2 and changing socio-economic condition. That progress slowed down but it was still growing till 1970s when it again experienced rapid growth in its membership. The time after 1980s then continued to 1990s and 2000 the trade union membership experienced rapid fall and from 2000 it started stabilising with very slow increase. The report prepared by Cockburn (2009) shows the recorded trade union membership of 7,656,156 in 2008-09, compares to 7,627,693 reported in the previous period. This indicates an increase of 28,463 members or 0.37%. The total recorded membership of around 7.6 million compares with a peak of 13.2 m illion in 1979. The essay will try to discuss about various factors responsible for the decline in membership. Economic Factors The British economy saw many changes after World War 2 in terms of its growth, flexibility and approach. According to David Farnham (1997) there are three major changes happened in international and UKs domestic economy since 1950s and very prominently after 1980s. First, the developing countries restructured their manufacturing industries to become important exporters of manufactured and semi-manufactured goods in Europe, North America and Australasia. Second, the developed countries started moving from manufacturing to service economy thus non-manufacturing industries started growing in these countries. Third, the new emerging markets of East Europe and breaking down of Soviet Union created new opportunities for trade. The above changes had direct impact on UK economy and resulted in declining of number of people employed in manufacturing industries by 45% from 1979 and 1996, David Farnham (1997). There was an expansion on non-manual jobs, professional jobs also the number of worki ng people grew from 25 million in 1971 to 28 million in 1996. The above changes are reflected on British economy and have long lasting effect on life style of people. It also brings more completion in the market from external suppliers and changed the focus of British economy from large, nationalised, manufacturing based economy to privately owned, relatively small and service oriented. The idea of Globalisation in mid 1980s, as described by David Farnham (1997) saw capitalism as the major globalising dynamic and constantly increasing the scale of production and consumption. The increase in trade and commerce with new markets opened new scope as well as competition. The focus of the economy changed to mass produced, cheap products to meet high volume of demand and consumers aspirations. Thus British economy experienced imported products from East Asian countries which resulted in decrease of manufacturing industries in Britain. With the number of people in employment increased the a bility to buy, availability of easy credit and other factors contributed developing of overall living standard of the people. This change in economic condition made the trade union membership less attractive and the collectiveness started eroding among members resulted in decline of membership. Political Factors The British politics observed influence of two political parties The Conservatives and The Labour between 1970 and 2000; their ideological differences were prominent in their policies. The strategy of Conservative party who was in power from 1979 to 1997, as observed by David Farnham (1997), were influential in reducing public expenditure, cut taxation and state borrowing, privatised the nationalised industries and other public sectors, deregulate the economy, working towards free market, free trade, free enterprise, legislation to curb the powers of trade unions to free up labour market as well as undermine collectivism in favour of individualism at work places. As Ed Rose (2008) observed the employers right to manage was reinforced by restricting powers and activities of trade union and encouraged fluidity and flexibility within the labour market. According to Ed Rose (2008) the result is private sector employers achieve greater control over the work and labour process. In 1997 whe n the Labour party formed government they promised to change its traditional Labour policy, as observed by David Farnham (1997), towards promoting competition, pursue tough, efficient regulation, working as a partner to both employers and employee, fairness but no favour to the trade union and last but not the least no return to secondary action, strike without ballots or trade union law of the 1970s. Moreover, consecutive governments passed various legislations which curb the power of trade union and strengthen the hands of employers as well as encourage individualism over the collectivism. According to Millward (2000) and Kersley (2006), the union experienced decline of the unionised sector, collective representation which resulted in fall of collective bargaining with pay and other issues. As observed by Taylor (2003), somewhat hostile treatment from the Government and the policies, legislature changes that are made to restrict trade union power and activities were responsible fo r trade union to lose relevance in private sector organisations and also put challenge in front of trade union to adapt its functioning with the changing circumstance failing of which saw decline in membership and inability to connect with new workplaces. Industrial Factors The period from 1970s as observed by Ed Rose (2008), saw restructuring of British industry in terms of management style of employment relationship, increasing emphasis on communicating with workforce and workplace representation of employees. The result of these changes are adopting anti-union strategies, shifting from pluralist to more unitarist style by many private sectors. Both private and public sector organisations adopted HRM practices, strategies and models of employment engagement thus moving away from collectivism to individualism. As observed by Kersley (2006), Milward (2000), the restructuring of British industry saw the shift from manufacturing economy to service economy, the introduction of technology, computerisation and information technology paved the way for developing specialised skills, part-time, fixed and temporary work contract which resulted significant increase in labour market insecurity and have impact on employment relationship. Moreover, as Ed Rose (2008) pointed out with the changing economic condition and focus on cost saving many organisations sub-contract their fringe jobs to small or other organisations and only concentrate on core activities thus number of employees within the organisation has substantially decreased resulting decrease of employees bargaining power within the organisation. The drive for employing multi-skilled employees also reduced the dependence on specific employee to complete a task thus decreased the level of job security among employees resulting shift of balance towards employers control more than the employees. Trade Unions Internal Factors According to Curran (2006), the trade unions become too institutionalized which prevents it from progressing rather tied up in its own structure with the control power to the full time management of the Trade Union. According to him trade union leaders suffered complacency and forgot to remind people the good work of trade union movement and lot still can be done for those who are being exploited by organizing collective bargaining. Moreover, trade union failed to create connection with the new immigrant workers who would have been highly benefitted from trade union support as they were recruited for low skilled, low paid and most of the times were exploited. He observed that trade unions failed to recognize and adapt itself with the change that the society experienced due to political, economical and the effect of globalization. The trade unions need to understand that they have to adapt and organise its function according to the need of the situation, the advent of technology, pros perity and disposable income has changed the lifestyle of the trade union members but as an organization Trade Union failed to adopt itself with that change and got stuck with the philosophy, style and culture of trade unions foundation time. Moreover, many large Trade Unions still struggle to get rid of their Masculinity culture when the reality is almost 40% of the working population are women and it is difficult for the women to become member of trade union and associate with its day to day activities. As observed by Bob Carter(2004), the Trade Union need to redirect recruitment of members who are in part-timers contract of employment; change bargaining priorities to reflect part-timers concerns; and to change union organization and representation to facilitate participation by part-timers. It is quite evident from the above discussion that trade unions failed to change its priority and redesign its role to suit with the changing world and thus it became somewhat irrelevant to so me members which directly reflected in decline of membership. Future of Trade Union The prediction of future of Trade Union membership and prospect is difficult but can only be done based on past experience, available data and survey results. According to Ed Rose (2008), the evidence shows that there is very less likely the New Labour Government will change the direction of policies towards empowering and giving more authority to the trade unions. It is evident that the balance is more towards the Employers than trade union in controlling employee relationship. Moreover, the specialist skills of managers to deal with employer engagement, various legislations passed to provide more provisions and empower individualism and limiting collective bargaining are the clear indications of limiting trade union roles and powers in future. According to Kersley (2006), the change in giving standard contract to the employees and increase of special kind of contracts like consultancy, fixed term, term time, temporary, part time also private organisations support to non-unionised o rganisations and improving individual employee engagement programme as well as government legislations to support individualism are some of the biggest hindrance towards improving Trade Union membership. According to Ed Rose (2008), the prospect of increasing Trade Union membership looks bleak but analysing the present situation of increase in unemployment, increase of women membership in trade union as revealed from recent surveys and the indications are there that this trend is going to continue as well as the growing general perception among employees that employers are responsible for unfair treatment at workplace may help to improve the situation of trade union membership. There three strategies as suggested by Ed Rose (2008) could change the situation of decreasing Trade Union membership are Servicing Model, Partnership Approach and Organising Model to suit with the changing economic, political and industrial conditions. According to these models the Trade Union need to give service to its individual member by devoting more resources to the enforcement of their rights, be a partner with the employers to achieve competitive advantage for the firm and add values to the service pr ovided as a trade union and last but not the least to organise support for the workforce to solve conflicts and maintain a strong presence throughout. The above models may be theoretically looks good but there are contradictions and depends how well they are executed as well as perception of the role to all the stake holders. There can be element of low level of trust between employers and Trade Union on each other as Partnership Approach can contradict Organising Model. The whole situation of maintaining relationship with both employers and employees can be very difficult if the interest of employees and employers on specific issues are vastly different and in that situation it can be difficult for trade union to follow the above models as this can be perceived as contradictory to each other. According to Peter Wilby (2010), with the growing globalisation and the organisations tendency to move to the countries with cheap labour and favourable business environment, legislation, it is the time for the trade union to think globally as well as strengthening their local roots to strengthen the trade union movement. The trade unions should create a global Union to stop exploiting labour cause anywhere in the world and thus fight for the jobs for local people. It is important for trade union for its own survival to organise movement for local people and working proactively to increase membership, more reliant on its own strength and less dependent on political party like The Labour party introducing favourable legislation to empower Trade Union. According to Curran (2006), trade union should realise that changing its culture and style is not a threat to its values rather a way to sustain its principles of maintaining equality, liberty and solidarity at workplace. The growing tre nd of capitalism in the society creates hour glass situation in organisations where some people at top are enjoying all the benefits and those at the bottom are struggling and their family is experience stress and low prospect of development. This economic condition and stress to fulfil every demand to maintain good lifestyle and the realisation by trade union to change its style of functioning will help to improve the prospect of improving trade union membership in next five years. Though it is difficult to predict if it will able to touch its peak in terms of membership but it will definitely be able to improve current situation in terms of membership. Toyota: Corporate Social Responsibility Toyota: Corporate Social Responsibility The history of Toyota Motor Corporation (TMC) which is a Japan based-company begins when it is established at 1937 by the founder, Kiichiro Toyoda. (Toyota Motor Corporation n.d.) Since then, the company has started to emerge into the industry of automobile manufacturing until now. As of today, Toyota is one of the worlds leading company manufacturing vehicles and parts. In order to move fast to keep pace with other competitors and to maintain its position and reputation in the business, Toyota has practiced the Corporate Social Responsibility (CSR) policy which is Contribution towards Sustainable Development. (Toyota Motor Corporation n.d.) With this policy, Toyota does not only concentrate in maximizing its profit as they also contribute in taking care of the welfare of the society and the environment. Nowadays, most of the consumers are highly educated and environmentally conscious as they are demanding for more than just a high quality or a reasonable price product. Therefore, To yota has to make sure that they can balance up the needs of the society and consumers. Besides producing high quality vehicles, Toyota also has to respond to the environmental issues which have been occurred. In this new era, Toyota is taking every steps and precautions to protect the environment. They may proclaim that they have done good to the society by implementing some policies or concepts such as the introduction to the hybrid cars. But how far could they go? One of the good examples is when Toyota Prius was first launched in 1997. Many has criticized and questioned about the Priuss green concept which uses the hybrid system. Production of hybrid cars is one of the responses of Toyota towards the issue of global warming and the limits of fossil fuel. (Toyota Motor Corporation n.d.) In producing this car especially the battery itself, it actually causes more harm to the environment. One of the biggest concerns about this car is that Prius battery contains nickel metal hydride. (Prius Outdoes Hummer in Environmental Damage 2007) Based on the newswire, the nickel is mined and smelted at a plant in Sudbury, Ontario which leads to environmental damage to the surrounding area. This has f urther leads the NASAs astronaut trainees to practice moon rovers around the Sudbury plant which is badly destructed. (Prius Outdoes Hummer in Environmental Damage 2007) Also, there are many critics who comment on the shipping footprint of the nickel battery. The smelted nickel from Sudbury is shipped to Wales for refinery and to be made into nickel foam at China. The completed batteries which are made in Japan would be then shipped to United States when the car is ready. (Hodges 2009) This has creates doubt about Toyotas environmental aspect as the production process of the battery is not helping in reducing emissions but in fact, the shipping process has already consumed a lot of fossil fuels which would lead to air pollution. Back in 2003, Toyota is questioned about its philosophies towards green environment. Toyota is facing a lawsuit from The Department of Justice and the Environment Protection Agency for violating Clean Air Act. (BJS, 2003) Upon Toyotas application for Certificates of Conformity, it has claimed that Toyota has sold 2.2 million vehicles which were different from the statements in the application. According to the United States government, Toyota has failed to disclose limitation in the operation of the on-board diagnostic system that checks for leaks in vehicles. (BJS, 2003) Because of the leakage problem, Toyota is involved in causing pollution as fuel that vapors into the air would lead to the ozone pollution. Due to this matter, the consumers of Toyota vehicles do not know that they are actually indirectly involved in polluting the environment. Another case which leads to a doubtful thought about Toyotas environmental friendly principles is when Toyota is sued by California at year 2 006. (Glaister 2006) Toyota and several other automakers are to take the blame for producing large amount of vehicles that releases huge quantities of carbon dioxide which contributes to global warming. According to the states Democratic attorney general, global warming is bringing harm to Californias economy, environment, public health and agriculture. (Glaister 2006) Though Toyota is making revolution by producing hybrid cars and building more fuel-efficient vehicles, Toyotas image and reputation are blemished by the lawsuits that it faced before. In spite of the criticism of the nickel battery and the lawsuit cases against Toyota, the company has actually poured a lot of effort in protecting the environment. Based on Toyotas sustainability concept, it has focused on three areas comprise of technology, manufacturing and social contribution. (Toyota Motor Corporation n.d.) Research and Development (RD) is categorized in the area of technology and one of the RD that Toyota has created is that they have engineered its own flower species. (Merchant 2009) The carbon dioxide released by its Prius assembly operations is offset by this new plant species. The flowers are derived from the cherry sage and gardenia which helps to absorb nitrogen oxides and to reduce the heat of the atmosphere. (Merchant 2009) Toyota should be praised because it has discovered something special in those flowers. Both the flowers have unique characteristics as the sages leaves can absorb harmful gases whereas gardenias leaves can reduce the temperature of t he factorys surroundings by creating water vapor in the air. (Blackburn 2009) With this, Toyota can concentrate in finding and doing research in advanced technology to produce hybrid cars as they have found a greener way to reduce the emissions of the manufacturing process. This also has shown that Toyota has gone beyond their industry area to look for alternatives and new innovations to preserve the environment. Their action would definitely build up its reputation and image among the stakeholders especially the consumers. In committing towards sustainable development, Toyota is also taking initiatives to develop the manufacturing process through a greener way. It cannot be denied that Toyota is actually polluting the environment during the process of manufacturing and producing the vehicles and car batteries. Hence, Toyota is designing and manufacturing its vehicles based on the concept of three Rs which consists of reduce, reuse and recycle. (Toyota Europe n.d.) Toyota has been manufacturing vehicles with recyclable materials as cars are actually built by plastics that are difficult to be recycled. Therefore, Toyota has created Toyota Super Olefin Polymer which is a special recyclable plastic to make car bumpers and other parts. It can then be recycled and used for many times. (Toyota Europe n.d) Besides, Toyota also has indirectly encouraged the consumers and dealers to be involved in recycling program. For example, each of the battery of the Prius car has a phone number on it to ensure every batter y goes back to Toyota for the purpose of recycling it and dealers are to be paid $200 for each battery. (Richard 2005) Other than that, Toyota has also stepped in further in the area of recycling. For instance, Toyota has built up a waste collection systems. It is for the purpose of retrieving used parts such as tyres, batteries and oil filters from European dealers to send them back for recovery. (Toyota Europe n.d.) In order to contribute to the society, Toyota has involved in various environmental activities. One of them is shown by Toyotas support of Planet Arks National Tree Day. National Tree Day is one of the Australias biggest community tree planting events which falls on August 1, 2010. (Tree Day n.d.) It is a special day where all the Australians would gather around to join this event. All of them are working towards the same motive which is to lending a helping hand to plant and to care for native trees and shrub to improve the environment they live in. (Tree Day n.d.) Toyota has demonstrated its concern and care for the environment by joining this event. Toyota has been supporting Planet Ark and National Tree Day since 11 years ago. (Toyota Motor Corporation Australia Limited n.d.) Ever since Toyota joins this event, its partnership with Planet Ark and National Tree Day are being appreciated and they are working in a collaborative way. All Toyotas dealers, staffs and brand ambassadors are being encouraged to participate and to support this special day. Their supports can be shown by Toyotas contribution of planting almost 15 millions of trees to reduce the effect of global warming. . (Toyota Motor Corporation Australia Limited n.d.) This action is a good example and role model for society as Toyota would influence the society to contribute to National Tree Day as well. As an automobile manufacturer, Toyota is facing challenges and obligations everyday throughout the whole process of a vehicle starting from the development until the disposal stage. In my opinion, it is not easy to be one of the largest companies. For instance, Toyota has to face pressures given by the government, stakeholders and the society to fulfill and to respond towards their needs for a better product and a better environment. It has been a tough and long journey for Toyota to achieve what they have now because throughout its companys history, they have been criticized and many comments have been given which are against their every action. Though they might not be a hundred percent environmental friendly company, they are actually giving a large proportion of contributions in helping the society to achieve a healthier environment. Which automobile company can be a fully hundred percent based environmental friendly company? I doubt there are any companies who can successfully d o so. All in all, every company including Toyota needs to fulfill their responsibilities towards the society and environment in order to have a better life and world. Our future generations are very much depending on their actions which are taken today. BJS. 2003, March 11. U.S. settles Clean Air Act case against Toyota. Web log post. http://scienceblog.com/1196/u-s-settles-clean-air-act-case-against-toyota/ (accessed August 8, 2010) Blackburn, R. 2009. Car maker develops its own flower species. Drive. http://www.drive.com.au/Editorial/ArticleDetail.aspx?ArticleID=66761vf=1 (accessed August 10,2010) Glaister, D. 2006. California sues car firms for global warming. The Guardian. http://www.guardian.co.uk/environment/2006/sep/21/usnews.travelsenvironmentalimpact (August 10,2010) Hodges, A. 2009. Toyota Prius Battery Harms Environment. 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