Unions

Introduction

Unions (trade unions) in Australia formed in the nineteenth century as workers associations, which aimed to improve the poor working conditions of workers such as convicts and miners. Unions use a number of strategies such as strikes, collective bargaining with employers, legal challenges and advertising campaigns to try to maintain and improve members' working conditions, such as their pay and entitlements. See image 1.

Unions created improved working conditions for workers

It is important to realise that unions created many of the working conditions we enjoy today at work. Unions forged many such gains at national wage case decisions through the Federal Industrial Commission. Before the 1990s, most Australian workers were on national award wages, which were increased for all workers (non-union members and union members). Unions took many test cases before industrial tribunals to achieve improved working rights for award workers, like four weeks' paid annual leave and the 38-hour working week standard.

Unions still campaign vigorously for their members, particularly to preserve workers' minimum statutory entitlements and to protect those workers with less 'individual bargaining power'. A worker with few skills who negotiates 'one-to-one' with an employer for pay and conditions may be particularly vulnerable to less favourable pay and conditions, especially if the economy slows down.

Since the early 1980s, governments have attempted to respond to an increasingly globalised economic environment. Issues of 'efficiency' and 'competitiveness' have underpinned various agreements and legislation since that time. See image 2.

1983: Prices and Income Accord

In 1983, with Labor in federal government, the ACTU made a commitment that, on behalf of workers, it would exercise restraint in wage claims. In return for this concession, workers would receive other benefits such as superannuation. Although not a legal instrument, the principles of the Prices and Income Accord ('the Accord') were adhered to for a decade. This was portrayed as a period of 'consensus' where the government and unions negotiated the best way for labour and capital to meet new economic challenges.

2006: a new bargaining environment for unions

Unions once had considerable control over members' working conditions with union-only agreements. Non-union collective agreements under 'enterprise bargaining' at the workplace level led to a drop in union bargaining power and control. This meant that instead of operating as an industry, workers at each workplace were encouraged to negotiate with their specific employer, decentralising the union movement.

With the increasing role of Australian Workplace Agreements (AWAs) since the enactment of the Workplace Relations Act 1996 (Cth), unions have had greatly reduced bargaining power and influence in the workplace. An extreme situation is when employers, such as the Patrick Corporation, have attempted to 'de-unionise' their workforce, 'lock' unions out of the workplace and place many or all workers on employer-controlled individual contracts (AWAs). It should be noted, however, that Patrick Corporation's attempt to reduce the power of the Maritime Union of Australia was unsuccessful. The Federal Court of Australia found that there was a serious possibility that Patrick intended to treat union members illegally. This was upheld twice on appeal. See animation 1.

A decline in union membership

Unions have lost some bargaining power in the workplace. Enterprise (collective) bargaining and individual contracts (Australian Workplace Agreements) have reduced union control over members' working conditions; so has technological change, 'downsizing' of industries (job cuts) and the increased bargaining power of employers.

An increase in employers hiring sub-contractors (outsourcing) and casual staff has also led to declining union membership. In total, these changes have greatly reduced union membership, with many workers now questioning the relevance of unions. Unions had a membership of 57 per cent of the workforce in 1982; in 2004, this percentage has dropped to a low 23 per cent. It could be said that the unions' decrease in membership and influence over members' working conditions is a 'crisis of legitimacy' with many workers feeling that unions can now do little to improve their job security, wages and working conditions. See image 3.