Debate Magazine

Thoughts on Labour Relations

Posted on the 13 August 2015 by Markwadsworth @Mark_Wadsworth

I've been doing a bit of thinking about labor relations in the past and the current situation and thought I'd bounce some things around
1) Unions rose in a time of monopoly employers. Employers treated workers badly, employees didn't have many other options, but what they could do is collectively stop working. And at that time, employers also didn't have many other options but the local workforce, so had to work with the workers, as a group to accept their viewpoint.
2) As industrialisation grew, so did trade unions, peaking in the late 1970s. It could be argued that greater automation reduced the union workforce, but the scale of decline has been far greater than just large factories. It has fallen from 12m to nearly 6m and the remaining trade unionisation is nearly all in the public sector.
3) There's a lot of attribution to Thatcher in smashing the unions, but the fact is that membership of unions continued to fall after she left office, as did strike days. They fell under the Blair years with no new union laws.
4) My hypothesis is that the rise in car ownership changed the relationship between management and workers. If you worked in a factory and didn't like the terms, the factory 5 or 6 miles away was now another option. You could just leave and go work for them instead. At the same time, employers could grab employees from further away with skills. The need for a union to resolve your grievances disappears. And so as more and more people got to own cars, more unionised jobs fell.
5) Unions still exist in the public sector because the employer is generally a monopoly.
Thoughts?


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