Decline in Strike Activities
Strikes are characterized by temporarily halting work in enforcing a particular demand or in expressing grievances. Strike activities have been declining with time in the Europe and also in the United States, and few employees are joining trade unions as compared to earlier decades. Surveys indicated that strike activity is characterized with the numerical measure of the activities related with strikes. In the Ireland, strike activity data are gathered by the Central Statistic Office and the Department of Enterprise and Employment Monitoring Unit. Different jurisdictions have bodies that gather data relating to strike activities. It has been noted that the strike activities are characterized with workers involved in strikes, the overall number of strikes in a particular period and on the number of days that are lost as a result of the strike. Reduction in strike activities does not necessarily indicate that the conflict between employers and employees are no longer in place, it depends on context.
Measure of workers involved in the strike activity is critical in defining the trends and impact of the strikes to either diminishing or increasing (Reid, 2005: 302). In most surveys, it has been noted that strikes lasting for only a day are not included in the computations of the strike activities, a model that affects the accuracy of the data compiled. In most cases, strikes are considered if they last for at least ten days. Record keeping depends on the trade unions, employers and other stakeholders in reporting the strikes to the relevant authorities (Fletcher, 2012: 110). There are chances that some strikes that happen in Europe and in the United States go unreported, hence not counted.
Analyst of the strike activity argues that organizations of the twenty first century value the contributions of the human capital to the organization (Berman et al, 2012: 299). Some organizations support the argument that human capital is one of the most important resources within the firm. The majority of organizations are sensitive on human capital and make sure that employees are motivated and valued, which is part of building a competitive edge. The improved relationship between employees and the employers is ever increasing, hence alleviating conflicts that result to strike activities (Reid, 2005: 54). Most strikes are related to pay issues, many governments have formulated policies that foster a level playground for employees and employers, a model that reduces days lost through strikes and in reducing the overall number of strikes (Kelly & Willman, 2004: 177). Records gathered officially and unofficially on strike activities have indicated a significant reduction in the strike activities in the world.
In 1950s and 1980s, the labour markets were characterized with industrial societies that were organised. Membership in many unions was increasing in many nations of the world, particularly with the developed nations. In some nations, the membership of the trade unions exceeded the labour force, which was influential in wage setting among other activities (Dray, 2011: 723). In the period between 1950s and 1980s, the period was characterised with increased strike activities. It is argued that the trade unions were weakened by the closure of many industries and mass unemployment, among other factors (Fletcher, 2012: 119). Defeats of trade unions in disputes led to decreasing membership as more and more employees lost trust with the unions. Examples of defeated trade unions identify with Miners 1984, Steel 1981 and P&Q of 1988 among others. Many employees were demoralized by the weakened trade unions, a factor that contributed to the reduced strike activity.
United Kingdom trade union movement in the 1970s was very active and had powers over employers (Fernie & Metcalf, 2005: 202). The UK trade unions recruited many members and brought down government and organizations. Millions of members were active in the UK trade unions. In the 1980s, the activities of the UK trade unions reduced drastically as the membership of the trade unions recorded reducing numbers. Reducing powers of the trade unions were not only experienced in the United Kingdom but also in other parts of Europe and also in the United States. Elections of conservative party led to neo-liberal attacks targeting trade unions. It is argued that the period between 1979 -1999 in the United Kingdom; it recorded the lowest union membership in the history (Kelly & Willman, 2004: 164).
There are various theories that explain the trends in the activities of the trade unions; it is argued that changing labour legislations, changing employment composition and changing macroeconomic conditions explain on reducing strike activities. Employers over centuries have been resisting trade unions, leading to incentives discouraging employees in joining trade unions. Decline in the trade union membership is attached to shift in prices, shift in unemployment and changes in wages (Dray, 2011: 555).
It is also argued that shifting from manufacturing sectors to private sector services in many ways discouraged employees from joining trade unions, a factor that contributed to the weaknesses of the trade unions. In the 1970s, an average of one point six million workers took part in the strike activities. In 1980s, there were roughly one million workers taking part in strike activities and in the 1990s, there were less than eight hundred workers involved in the strike activities in the United Kingdom (Fernie & Metcalf, 2005: 176). The same trends were noted by the United States and other nations within the European Union. In the United Kingdom, unionization fell with over five million since 1979.
The economy of the United Kingdom was weakened in the 1970s by the strike activities, to an extent that the strike activity was referred by the term ‘British disease’ (Kelly & Willman, 2004: 47). The labour government was negatively affected by the ‘British Disease’ to an extent that it had to borrow loans from the IMF (International Monetary Fund). The period was characterised with harsh work environments that resulted in reduction in public spending. Surveys indicated that in August 1977, the unemployment rates were so high that it reached to more than one point six million persons (Reid, 2005: 276).
In 1978 and 1979, the period was characterised with labour disputes that led to labour unrest in the region. The period was characterised with different trade unions going on strike at the same period according to reports that were compiled by the BBC (Kelly & Willman, 2004: 160). Labour party lost the elections to the Conservative party that was led by Margaret Thatcher in 1979. Trade unions faced it rough with the changing business environment, unemployment was high to an extent that it was higher than the figures reported during recession (Yates, 2009: 43). Price and wage inflation affected trade unions negatively. Shift in wages also affected trade unions negatively, it has also been noted that strikes were high in the boom seasons and low in recessions.
Unemployed workers contributed weak trade unions, and the bargaining powers were highly reduced (Dray, 2011: 485). In seasons of high employment, the bargaining powers of the trade unions were high, considering that replacing the employees in the work places was highly minimized, but in cases of unemployment, striking workers could easily be replaced by unemployed workers in the job market. In the United Kingdom, it was noted that most strikes happened in the boom periods lasted for few days since organizations negotiated with employees in solving the disputes (Fernie & Metcalf, 2005: 87).
Mass unemployment in the business cycle resulted in poor bargaining powers and limited growth of the trade unions. It is argued that long term unemployment resulted in high costs in running the trade unions, which resulted to lower benefits of the trade unions. Mass unemployment resulted in deteriorated strike activities. The world in the twenty first century is facing mass unemployment, a model that is deteriorating the activities of the trade unions globally. The human population is ever increasing and the creation of the jobs in the global market is shrinking with time (Berman et al, 2012: 381). It is also argued that rising real wages in the economy result to declining strike activities. Improved wages results to improved living standards of the employees, and less involvement of the trade unions in the workplaces. Strikes occur if real wages drops as employees engage employers in improving the living standards.
In 1980s, the period was characterised with improving economic standards for many parts of the world basing on the rapid growth in wages. It is argued that macroeconomics due to improved global economies influenced the trade unions negatively. There are different factors that affected the economic factors in the United Kingdom and in the world (Fernie & Metcalf, 2005: 156). Different industries were affected differently with some industries showing reduced strike activities while some industries showed increased strike activities. Declining employments resulted in declining membership of the trade unions, as more and more employees lost trust with the trade unions, many employees lost jobs while still members in the trade unions (Reid, 2005: 400).
Surveys done in the United Kingdom indicated that the country privatized industries that were nationalized and deregulated product and service markets; a model that led to reduced bargaining powers on trade unions (Fernie & Metcalf, 2005: 145). The reforms affected productivity in technological change and in manufacturing. Globalization and socialization resulted to changing business trends in service industry taking shape with time. In 1980s and 1990s, the period was characterised with industrial shift which encouraged private service sectors from employment in manufacturing; basing on the change in employment terms and conditions attached to globalization, the membership of the trade unions significantly reduced as more and more people engaged self employment and did away with employments (Yates, 2009: 150).
Trade unions were not strongly positioned in the private sector services and related employment growth that was facilitated by globalizations and socialization. Private sectors to some extent discouraged trade unions in the United Kingdom and other parts of the world (Fernie & Metcalf, 2005: 187). Firms not related to non-manufacturing industries have continually discouraged trade unions. Part time employments and contracts have contributed to reduced membership in the trade unions. There has been increased numbers of small industries in the world, and in the same context, it has been noted that employees in the small industries in most cases shun trade unions.
Employers have constantly joined hands in discouraging trade unions; surveys indicated that the world has continuously networked through growth in technologies (Reid, 2005: 441). Industries in the world have been in position to discuss on ways of doing away with trade unions, and as a result many industries have developed mechanisms of avoiding trade unions by encouraging absence of the trade unions in the places of work.
Successive conservative governments over the years have discouraged trade unions through post war consensus that were part of the drastic changes made by the government (Kelly & Willman, 2004: 153). Political and economic policies led to poor representation of the trade unions that led to reduced strike activities. Conservative government was concerned with reduced roles of trade unions in the workplaces, exclusion of trade unions in some industries and regulating powers of decision making of the trade unions (Nkomo et al, 2010: 87). Employment Act of 1982 reduced the immunity of the trade unions against legal actions, employers were able to seek for damages and sue trade unions. The Trade Union Act of 1984 allowed organizations to seek industrial actions against trade unions. The Acts has been updated with Employment Act of 1990 and on the 1993 Trade Union Reform and Employment Rights Act; the legislations in one way or other directly affected modalities of striking, which affected the strike activity (Kelly & Willman, 2004: 87).
Conservative party was after individualism and discouraged collective bargaining, in so doing, the powers of trade unions were stripped. There are cases where trade unions have cancelled strikes after employers threaten to use law, since organizations have powers of prosecuting trade unions. Balloting has also influenced trade unions negatively, negotiation processes have been inclusive in calling off the strikes. Law defined time for negotiation processes between trade unions and organizations, hence balancing the powers of trade unions and organizations (Kelly & Willman, 2004: 188).
The attitudes of the society in the twenty first century have considered trade unions as a traditional concept. Most people are more modernised and prefer to face organizations on their own through the established courts of law (Lussier & Hendon, 2012: 289). The public opinion on trade unions has eroded the powers of the institutions; as more and more members of the society became ‘free’ of making personalized decisions. The society considers strikes as part of hostility, outdated, irrational and at the same time unnecessary. People in the society are also aware that strikes results to disruption of the economy (Mathis & Jackson, 2010: 207). People also believe that trade unions exercise excessive powers. An example of failed strike identify with the fire fighters strike that took place in 2003, the United Kingdom government was against the workers basing on the irresponsible media publicity. The needs of the strike actions in the twenty first century have been replaced by individualized bargaining, engaging union tribunals and negotiating with the employers directly.
Organizations in the twenty first century value human capital more than ever before (Berman et al, 2012: 154); it is argued that human capital is one of the most important intangible assets. Human capital is characterised with commitment and competencies of people in a firm. Human capital offer skills, potential, experience and capacity among other benefits, in which an organization would fail if the contribution of human beings is ignored (Denhardt et al, 2012: 150). Human capital in organizations focus at people oriented capabilities that are critical in building a competitive edge in organizations. Human capital is not mechanistic, but it is characterised with contributions of people to the success of organizations, which is part of adding value to the organizations. Organisations invest in human capital through wages, salaries, and bonuses among other benefits as a means of motivating employees (Mathis & Jackson, 2010: 500).
The world is more competitive than ever, and organizations are ever competing for talented and experienced employees, employee retention is connected to the ability of business entities in holding employees. Human Resources Management has been concerned with the management of human capital in organisations (Denhardt et al, 2012: 91). Employers use diverse methods of retaining employees in the workplaces, employee retention is part of strategies in maintaining a highly performing teams. Employee turnover is an indication of problems within an organization. Deeper issues that affect the organization negatively includes poorly developed vision, low employee morale, poor recognition in the workplaces, poor work relationships and de-motivated employees among other factors (Lussier & Hendon, 2012: 396).
Poor commitment and satisfaction of the organization results to employees withdrawing from the organization and facilitating employees in seeking new job openings in the market; employees are motivated by different things and not necessarily on pay. Employees working on organizations that are concerned with the interests of the employees find it difficult taking part in trade unions (Lussier & Hendon, 2012: 404). Organizations have used employee retention as a strategy of increasing employee commitment and productivity, in so doing, employees in the twenty first century have shunned away trade unions and strike activities (Nkomo et al, 2010: 106).
In conclusion, decline in strike activities has been contributed by different factors and not necessarily an indication that conflicts between employees and employers has reduced. Human Resource Management has changed the concept of human capital and its contribution to organizations. Human Resources Management has improved the relationship between employees and employers, a factor that has reduced the conflicts between employers and employees. The governments has also developed policies and standards that have discouraged strike activities through trade unions that has been stripped off powers, this meant that the conflicts between employees and employers are still in place, it is only that the employees are silenced by law. Globalization led to changes in the industrial practices and facilitated service industries. The world is supporting individualism and not collectiveness, a model that led to reduced membership of the trade unions; some members of the community believe that trade union is a traditional concept.
List of References
Berman, E. et al (2012). Human Resource Management in Public Service: Paradoxes, Processes, and Problems. 4th ed. New York: SAGE Publications, Inc. 147-384.
Denhardt, R. et al (2012). Managing Human Behaviour in Public and Non-profit Organizations. 3rd ed. New York: SAGE Publications, Inc. 34-154.
Dray, P (2011). There Is Power in a Union: The Epic Story of Labour in America. New York: Anchor. 405-772.
Fernie, S. & Metcalf, D (2005). Trade Unions: Resurgence or Demise? (The Future of Trade Unions in Britain). London: Routledge. 38-263.
Fletcher, B (2012). “They’re Bankrupting Us!”: And 20 Other Myths about Unions . Boston, MA: Beacon Press. 105-203.
Kelly, J. & Willman, P (2004). Union Organization and Activity (The Future of Trade Unions in Britain). London: Routledge. 12-197.
Lussier, R. & Hendon, J (2012). Human Resource Management: Functions, Applications, Skill Development. New York: SAGE Publications, Inc. 273-461.
Mathis, R. & Jackson, J (2010). Human Resource Management. 13th ed. Stamford, Connecticut: South-Western Cengage Learning. 199-508.
Nkomo S. et al (2010). Human Resource Management Applications: Cases, Exercises, Incidents, and Skill Builders. 7th ed. Stamford, Connecticut: South-Western Cengage Learning. 67-292.
Reid, A (2005). United We Stand: A History of Britain’s Trade Unions. City of Westminster, London: Penguin . 33-446.
Yates, M (2009). Why Unions Matter. 2nd ed. New York: Monthly Review Press. 26-173.
Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.
[order_calculator]