Labor Union Decline Task - Assignment Solution

Introduction:

Economies for their growth and seamless flow are mainly dependent on its industries, irrespective of their nature of operation or business. Whereas, the industries are based on its workforce or labor. It can rightly be claimed that labor is among the major factors holding influence over the growth or decline of economy. 

Considering the importance of labor for the industries, maintenance of their rights, working conditions, development and concluding resolutions for their other issues, labor unions are formed. Main theme of Labor unions is to work as a mediator between the employers and employees. The beginning of Industrial Revolution in Britain also   embedded the long-lasting roots of labor unions. The same concept flourished with the rise of industries globally, however owing to the changes in government policies and industries operational modes labor unions in most of the global regions are not as effective as in the past. 

What are Unions:

In simple terms union is a group of people working in a common area performing in varied positions for a common goal. Among a union, elected individuals are assigned the responsibility to look after the interest and safety of their fellow workers, interpreting the issues of the working labor to the employers and negotiating with the senior management best employment policies for the entire working labor.   

Unions are formed so the problems of individual workers are efficiently conveyed to the concerned management and a competent solution of the problem is provided. Unions also an effective aid for the organizations in maintaining seamless operational procedures. 

History: 

The concept of labor unions is not new, in the past during medieval period particular groups of craftsman or merchants known as ‘guild’ were formed in the form of a union to promote their work or services and provide better opportunities for the guild members. These group of merchants or craftsmen set rules regarding economic activity in order to protect themselves (Hatch & Hatch, p. 90, 2010). The main theme of the past guilds of looking after the individuals in a common profession is quite identical with the main purpose of current era’s labor unions.  Hence, we can say that legacy of medieval guilds is carried forward in the form of labor unions of today.  

Though the grouping of individuals from specific professions started during the middle ages, however actual formation of labor unions started during the era of British Industrial Revolution. During the 18th century with the rise in industries demand for manpower also enhanced, people from rural areas moved to industrial regions for employment in industries. Industries were hiring people regardless of their competency in looking after the interest of the workers and providing a safe working environment. Also, lack of government’s competent policies and its least interest, workers in varied industries were compelled to work in substandard conditions and were not given any liberty to approach the employers for their needs. 

Unfavorable working conditions and employer’s inadequate response for the employee’s issues, caused the formation of unions having members of the workforce as its members. The same unions were formed to protect the rights of the employees and establish a venue for bargaining with the employers for the best interest of the employees and the organization as well. 

Decline in unionization:

Labor unions in Australia had been pivotal in improving the life standards of industrial workers, providing better health opportunities and payrolls. However, despite of the prominent accomplishments status of labor unions in Australian is declining since last 35 – 40 years. Main reasons for the same decline are;

Economic changes:

The advent of technological advancement in Australia during the eighteenth century, propelled the changes among the industrial sector. Australia’s industrial advancement was the impact of British industrial revolution. Australian manufacturing was supercharged in the 1800s by the enormous scientific, engineering, communications and transport advances occurring in Britain at the time on account of the Industrial Revolution (Simpson, 2018).

Advanced machinery and other technologies replaced the manpower, only the skilled workers were being considered for the industrial jobs. The use of more sophisticated machineries or tools and techniques leads to a reduction or substitution of labor deployed for want of a higher-level skill (Singh & Kumar, p. 65, 2011). Thus, resulting in significant reduction of employees in industries.