Trade union membership and influence has declined significantly in recent decades in the UK. Union density fell from 55.6% in 1979 to 27% in 2010, especially in the private sector. This is due to economic changes reducing unionized industries, legal changes weakening unions, and fewer workers seeing the need to join. Unions are trying to reinvent themselves through greater cooperation with employers, providing new services to members, and community organizing to regain relevance and membership. However, unions still face challenges gaining influence in a less union-friendly climate with more diverse and fragmented work arrangements.

1. Critically review the role and function of Trade Unions in the current economic climate. In
the answer include some analysis of historical development and the trade union
employment agenda.
The past few decades have seen a marked decline in the influence of trade unions. While
membership density stood at 55.6% of the workforce in 1979, it currently stands at around
27%. The membership level has been especially poor in the private sector, with just 14% of
the workers being members of unions. While, at a point there were ‘closed shop agreements’
where joining a union was a pre-condition to employment at a few workplaces, now a good
number of employers don’t even recognize unions. This decline can be attributed to various
economic, legal and political factors and to changes in workplace relations.
The trade unions have been trying to reinvent themselves in an effort to reverse this trend or
to at least arrest it. While there have been a few instances of radical unionism, there has
been a general shift towards greater co-operation and partnership with employers.
For trade unions to regain their lost glory, they should first try and increase membership.
This will only happen if they can convince workers that there is a clear benefit in joining
them. This is tricky in the current scenario as they don’t enjoy the same kind of legal and
political protection they once had.
According to the Trade Union and Labour Relations (Consolidation) Act 1992, a trade union
is an organization, which consists wholly or mainly of workers, and whose principal purposes
include, the regulation of relations between workers, and employers and employers’
associations. (legislation.gov.uk)
A trade union’s role is to improve the employment conditions of its members and to protect
their rights. It takes account of its members’ wishes and insures them against problems at
work (Dundon and Rollinson, 2011; Williams, 2014). A trade union uses various measures to
achieve these basic aims, and these can vary from union to union. There is ‘economic
regulation’, where the union seeks to achieve the highest possible wages, ‘job regulation’,
where the union takes part in the framing of rules and procedures that govern employment
in a firm, ‘power holding’, which is about acquiring enough power for the union to be able
to take retaliatory action if need be, and finally, there are unions which also seek to bring
about wider social change. While some unions look to achieve these aims through collective
bargaining, others seek to change employment laws through political lobbying. This usually
depends on the level at which they operate. (Dundon and Rollinson, 2011)
Historical Development of Trade Unions (the rise and fall of unionism)

2. The specific origins of trade unions are traced to local clubs of the 18th century. These were
associations of skilled craftsmen whose aims were to protect the wages of the members and
provide benefits (Rose, 2008). As the industrial revolution started to gain momentum
around this time, there was heightened trade union activity and collective action. Trade
union membership grew rapidly, especially in the 1850s and 1860s, due to improved
economic conditions, leading to the formation of the Trade Union Congress (TUC), a
national forum for trade unions, in the year 1868. The Trade Union Act was then established
in 1871, providing legal status for trade unions. (nationalarchives.gov.uk)
By the early 20th century, particularly after the formation of the leftist Independent Labour
Party in 1893, with whom they developed a close relationship, trade unions had become
quite influential. The Labour Representation Committee was then created, that brought
trade unions and socialists onto a single political platform, strengthening the relationship
further and also bringing unions more political power (nationalarchives.gov.uk). They could
then push through Acts that brought protection to employees in general, and also to unions.
1945-51
By 1945, trade union membership had reached 8 million, with unions being co-operative
with the government in the conduct of national economic and industrial affairs. (Rose, 2008)
The left leaning Labour party came into power that year, bringing in quite a few changes in
the economy as a whole. Their focus seemed to be on social welfare. To do this, they
brought in changes in employment law and went on a nationalization spree. By 1951, about
20% of the national economy, employing over 2 million people, was controlled by the state.
They introduced a series of welfare measures, but then had to cut back and introduce
austerity measures later as the economy was in tatters (unionhistory.info). The Labour party
then lost the election in 1951 perhaps as a result of their handling of the economy. The
party did manage to bring in a couple of changes in legislation which benefitted trade
unions. One is the introduction of the National Insurance Act, which, among other things,
insured all workers against workplace accidents, something the TUC had been fighting for.
The ‘Trade Disputes and Trade Unions Act’ was then repealed around this time after which
union membership rose dramatically (unionhistory.info).
1960-80
The 1960s and 70s were good years for the trade union movement in terms of numbers.
There was a rise in membership during this period with union density reaching 55.4% in
1979. Particularly noticeable was the rise in membership among women, with numbers
going up from 2 million to 4 million from 1960 to 1979. Working conditions and wages had
improved for manual workers. Professional associations started to align with the TUC, with
the TUC building a stronger relationship with the government. The unions also took account
of the changes in work culture and social change, by paying attention to the feminist
movement for example. Closed-shop agreements were adopted by some employers and
unions around this time, which made union membership a condition for employment, a sign
of increasing union influence. The governments during this period also brought in laws to

3. regulate terms and conditions of employment like the Contracts of Employment Act, the
Equal Pay Act that the unions had been pushing for etc. (unionhistory.info)
The Labour Party came back to power in 1974 and was compelled to support the unions in
their demands for wage increases despite the industrial decline during this phase. This
caused the prices to go up, with inflation reaching a postwar high and the value of the
pound declining. Unemployment started to rise as industrialists went out of business. By
popular perception, the Labour party and the union leaders themselves failed to restrain
union members. The Labour party left the economy in tatters yet again, and was voted out
of power in 1979.
1980-2000
Unemployment rose and union membership declined during this phase as heavily unionized
industries declined. Even when unemployment started to drop, the new jobs were in the
service industry, marking clearly the shift in the UK’s economy from manufacturing to
service industry. While union density was 55% in 1979, it fell to about 30% by the year 2000.
A lot of unions started to then merge to try and remain relevant.
Apart from the decline in unionized industries, the Conservative Government of Margaret
Thatcher had a role to play in the decline of unions. They brought in a series of laws that
controlled trade union activity. They also eased unions out of public bodies, industrial
training boards and the like, gradually weakening their importance and influence. The
unions also faced a series of massive strike defeats during this period, with employers filing
court cases against unions and also dismissing striking employees because they had the
support of the legal structure and the government. Thatcher also dealt with strikes in the
public sector with an iron fist, by making use of the new balloting laws, with unofficial
strikes disappearing completely. The most defining event that was reflective of the wave
against the unions was the miners’ strike in 1984-85. Pit closures were announced which led
to huge numbers of miners striking across the country. The miners’ eventually lost the strike
after a year, and this gave employers across the country the confidence to act against
unions aggressively by bringing in changes to terms and conditions of employment.
(unionhistory.info)
The unions started to become more diverse during this period with more women joining the
workforce and a certain percentage joining the unions as well. The TUC started to establish
annual conferences for black workers, gays and lesbians, and disabled workers as well. This
phase also saw a shift towards workplace unionism from the district organization model,
with stewards seeing the workplace in isolation from others.
Role of trade unions in Britain in the current economic climate
If one looks at the recent membership trends, unions in virtually all developed countries
have lost members. In Britain, while membership stood at 50% in 1980, it was 27% in 2010.

4. Importantly, this downward trend in membership has been pronounced among younger
workers and workers in the private sector, with a rise in the number of people who have
never joined a union (Dundon and Rollinson, 2011). While just 14% of the employers in the
private sector are members of trade unions, the percentage stands at 56 in the case of the
public sector, and while 33% of workers aged 50 and above are a part of unions, just 10% of
those aged 16 to 24 have joined a union. This is definitely a worrying trend for trade unions
(Wright, September 2011).
The economic, political and work atmosphere has changed a great deal which has led to this
downfall. Apart from the effects of the steps taken by Margaret Thatcher’s Conservative
Government in combating unionism through the legislation route, there has been a notable
decline in the propensity of workers to join unions and in the incidence of recognition of
unions by employers across sectors for collective bargaining. There has been a decline in
large-scale manufacturing industries with high union density, partly responsible for the fall
in numbers (Blanchflower, David and Bryson, Alex; April 2008). There has also been a lesser
need for workers to join unions with the state stepping in to protect their interests in a few
cases. For instance, they introduced the National Minimum Wage and also setup an
organization called the Gangmasters Licensing Authority to protect workers from
exploitation. There is also this growing trend of ‘Occupational Licensing’ in Britain which is a
form of recognition of the worker’s skill by either the government or their respective
professional body (Wright, 2011). As the incidence of occupational licensing has grown,
union membership has declined. There is also the rise of the Human Resources field, with
the employees’ interests being protected by the employers themselves, well enough for
them to not feel the need for unions. A rise in the percentage of employees who have never
been members is perhaps a result of this (Bryson and Gomez, 2005). There has also been a
sea change in the work relationship between employers and employees, facilitated by
globalization (ACAS, January 2011). There is a high incidence of work being outsourced to
countries where the labour costs are cheaper, a greater incidence of part-time work, short-
term contracts etc., with trade unions having to adapt to these changes, while they have
traditionally only dealt with full-time and long-term employment contracts.
The unions have been trying to reinvent themselves in response to all these changes in
atmosphere. They have started to co-operate more with employers, and have brought
about changes in their recruitment methods. They have also tried to restructure by merging
with other unions as an effort to increase their size and thereby their influence, bargaining
power, utility and attractiveness to prospective members. For most unions with dwindling
numbers, it’s also about reducing the burden on resources. (Dundon and Rollinson, 2011;
Wright, 2011)
The Unions have started to co-operate more with employers by adopting a partnership
approach, where there’s an emphasis on consultation and involvement in the formulation
and implementation of corporate plans, and where decisions are made keeping the interests
of both parties in mind. Though there has been an increase in such partnership agreements
in Britain, with 248 being recorded in 2007, they haven’t been very beneficial for unions
(Dundon and Rollinson, 2011). For instance, in the case of such plans, it becomes difficult for

5. unions to resist radical management plans. In fact there is evidence to show that wage
increases have been lower and job losses higher in such cases. But in an atmosphere where
employers aren’t even recognizing unions, this is still an option for them.
In order to attract more workers, the trade unions have also been offering a range of
professional services. The services include legal and financial services, individual protection
when members face problems at their workplace, negotiation services where there’s no
collective bargaining, and the like. Called the ‘service model of unionism’, this is one model
that can attract workers to join, especially the ones who feel vulnerable (Dundon and
Rollinson, 2011). The unions also set up a ‘Union Learning Fund’, in 1998, with the money
being used to increase the productivity of workers through skill up-gradation. This, as
reported by the employees themselves, has had a positive impact on their productivity and
morale at the workplace.
On the same lines, the unions have also started to develop alliances with civil society. So
called ‘living wage’ campaigns were launched in various cities by unions and community
groups in unison, which called for better pay and working conditions for contract cleaners,
and these were successful campaigns (Wright, 2011). In these campaigns though, the
community groups seemed to have had more influence than the unions. A few unions have
also turned to, what is termed as ‘community organizing’, aimed at people who aren’t
normally associated with unions, and who are marginalized and vulnerable (Holgate, 2013).
For instance, the union, ‘Unite’ a few years back declared that it will offer community
memberships to students, single parents and the unemployed for just 50 pence a week, and
through this offer legal support and educational facilities in exchange for collective
community action (Milo, 17th July 2011). Unions like Unite, TUC, the Public and Commercial
Services Union, Unison etc., have been taking steps to play a more active role in civil society
and build ties with them, by finding issues of common interest and supporting them in such
cases. They have been specifically targeting communities where the unemployment level in
relatively high or people whose lives have been affected by the government’s austerity
measures, resulting from the economic downturn. While what they’ve been doing for the
weaker sections of society through this can be appreciated, this is a tactic the unions are
using to gain the sympathies of the people, whose support they might need if they carry out
large-scale demonstrations. They wouldn’t spend all that money if they see no direct or
indirect benefit from this whole activity.
Another model of unionism, which is contrasted with and is adopted as an alternative to the
service model, is the ‘organizing model of unionism’ (Dundon and Rollinson, 2011; Wright,
2011; Rose, 2008). Here the union tries to empower workers, encouraging them to
determine their own agendas while providing a framework. To be clearer, this is about
training workers in workplace activism, so they can handle problems at the workplace
without depending too much on the union. These workers, apart from being workplace
representatives, also attempt to recruit other employees into the union. This approach is
adopted by several of Britain’s unions, including the TUC, who have a dedicated ‘Organizing
Academy’. There is evidence which shows that unions have gained from this approach, at
least as far as numbers are concerned. As of 2009, 40,000 new members were signed-up by

6. a cadre of 270 trained union organizers. For this organizing model of unionism to work
effectively though, the employer needs to be reasonably positively responsive and the
model must be implemented effectively by union officials who aren’t politically motivated
to push their agenda. On the face of it, this seems like a radical, unfriendly approach that
employers might not like. The other issue here is, while this form of unionism is dependent
on workplace representatives, their numbers have declined considerably and so have their
bargaining powers (International Socialism, June 2011).
The unions have also shifted from negotiating at the sectorial level to negotiating at the
enterprise level and even dealing with individual contracts. Collective Bargaining now
happens at the enterprise level more often, and with the breakup of the national bargaining
structures there has been a decline in the number of workers covered by collective
agreements (Wright, 2011). While this is often used as proof while explaining how the
unions have been losing power, to a great extent this is because the labour market has
become fragmented and there are new forms of employment. For instance, non-core
activities are being outsourced to other firms and there’s been an increase in the number of
short-term contracts. Therefore, one cannot explicitly say, ‘the decline in collective
bargaining shows how the unions are losing influence’. It is just that, the employer-
employee relationship being the way it is currently, collective bargaining cannot be done at
the sectorial or even the departmental level. Contracts of employment, even of the same
department, aren’t identical anymore. Therefore, each case must be treated differently.
The economic downturn also had a profound effect on the functioning of trade unions.
There was a liquidity crunch and a lot of companies had to resort to downsizing, which
meant large scale job cuts, a pause on hiring, benefits and promotions, and a lot of pressure
on even the workers who managed to hold on to their jobs. Trade unions felt the need to
come in here to protect the interests of the employees, while also keeping in mind the
apparent helplessness of the employers. They had less to bargain for but nonetheless
decided to do so. There were collective agreements on the flexibility and reduction of
working time, on employee re-skilling programs, on voluntary temporary leave for
employees etc. Although collective bargaining played a very limited role in the service
industry with the exception of the retail sector, in the manufacturing industry it was more
widely adopted during this period (Glassner, 2009; Glassner, Kuene and Marginson, 2011). It
can be seen that the trade unions played the role of a ‘safety net’ during the crisis, with the
focus being on maintaining employment while agreeing to compromise on many things.
RecentDevelopmentsinthe UK
While all this seems like there’s a shift towards a softer form of unionism, the last few years
have witnessed the flaring up of trade union activity in Britain. There was a teachers’ strike,
strikes at the Royal Mail, at London Transport, at fire brigades across the country etc.
(Newcombe, 20th December 2013). The biggest one, which was given a lot of attention
because of the high stakes involved, was at a town called Grangemouth, where an oil

7. refinery faced permanent closure. Ineos, the owner of the refinery, wanted to introduce
new terms and conditions on pay and pensions which the workers’ didn’t like and which
made them launch a massive strike with the help of ‘Unite’, the union representing them.
Work came to a standstill as no party was willing to budge. Ultimately, the workers had to
accept the terms and conditions as the owner threatened to close the refinery for good,
affecting the credibility of ‘Unite’ to a significant extent. This perhaps is an indication that
this militant form of unionism doesn’t work anymore, or at least isn’t as effective as it used
to be a few decades back. ACAS (March 2010), talks about the general decline in collective
bargaining and how this could lead to a rise in ‘unofficial expressions of discontent’ as if to
defend this sort of action. But ‘unofficial expressions’ can’t solve things as the law is on the
side of the employers.
In the near future, it would perhaps benefit unions if they adopt a soft mode of unionism.
Although when it comes to the most vulnerable members, disadvantaged due to their
helplessness and the power distance between them and their employers, striking work
seems like the only option at first; this approach seems to be outdated in today’s economic
and political atmosphere, as evidenced by the recent developments. Instead of reacting
when radical decisions are taken by employers when they run into problems, it would be
better for unions to be proactive by having agreements in place before hand, by adopting a
partnership approach (Terry, 2003). Although this approach has its critics who say unions
haven’t been able to achieve much through such agreements and that most have been
‘hollow’ (Wright, 2011), the unions should focus on getting what they can and not be too
ambitious when the tide is against them. But they do have things to fight for. According to
an Observer editorial (7th July 2013), profits are at a postwar high as a share of GDP and
wages at a postwar low. As far as recruitment is concerned, the unions have been, and
should continue to attract atypical workers and under-represented groups by adopting a
flexible approach (Rose, 2008). The unions also seem likely and will need to continue to
build and maintain ties with civil society organizations in order to build a support base. They
should be able to convince workers that being part of a union will benefit them in some way
(Metcalfe, David; 2005) over and above the benefits that the state and the human resources
departments of employers are providing already. The future, especially in the private sector,
seems bleak for trade unions. It would probably make sense for them to focus more on the
public sector, where they have some kind of an influence, and to continue to support
atypical workers and those who are the most vulnerable. They must also try and be as
apolitical as possible, which will bring more legitimacy to their aims and intentions in the
eyes of the general public. The most recent trends show a slight rise in numbers but it’s too
soon call this a ‘revival’. (gov.uk, 2012)
Conclusion
A combination of factors has led to the gradual downfall of trade unionism in the past few
decades in Britain. The economy shifted focus from manufacturing to service industry, new
laws limiting what trade unions can do were introduced while this economic transition was
taking place, and this was made possible by a general political will to reduce their influence.

8. In addition to this the employer-employee relationship has also seen a change, with new
forms of employment coming into being.
The unions have been making an effort to remain relevant in the midst of all these changes
in atmosphere. They have responded to falling numbers by merging into bigger unions. They
have been trying to attract members to join by offering various professional services in an
atmosphere where interest in them, especially among the younger workers and those
working in the private sector, has been waning due to various reasons. They have also been
dealing with atypical employees, while they were earlier only in favour of the traditional
variety of full-time and long-term employment. The employer-employee relationship has
also changed and the unions have responded by either adopting a partnership approach
with employers or by organizing and empowering their own representatives at workplaces.
The unions have also been looking at the larger picture and have been forging alliances with
civil society in an effort to widen their support base.
While all this seems like the unions have come of age, making a shift towards a softer form
of unionism, there still have been instances in the recent past where they have shown
flashes of radicalism. They could say they use such methods as a last resort. But then such
methods haven’t brought them any desirable results anyway. It would help if they realize
this and focus more on co-operation with the employers as such militant methods would
spoil their relationship with the employers forever and also alienate them from the general
public. A good place to start would be to make more realistic demands of the employers.
References
ACAS (January 2011); ‘The Future of Workplace Relations’
ACAS (March 2010); ‘Riding out The Storm: Managing Conflict in a Recession and
Beyond’
Blanchflower, David and Bryson, Alex (April 2008); Discussion Paper 864, Centre for
Economic Performance
Bryson, Alex and Gomez, Rafael (2005); ‘Why Have Workers Stopped Joining Unions?
– The Rise in Never Membership in Britain’

9. Dundon, Tony and Rollinson, Derek (2011); ‘Understanding Employment Relations’-
2nd Edition
Glassner, Vera, Keune, Moarten and Marginson, Paul (2011); ‘Collective Bargaining in
a time of crisis: Developments in the private sector in Europe’, European Review of
Labour and Research
Glassner, Vera (Working paper, 2009); ‘Government and Trade Union responses to
the economic crisis in the financial sector’
Hassel, Anke (June 2013); ‘Trade Unions and the future of democratic capitalism’,
Hertie School of Governance.
Holgate, Jane (2013); ‘Community Organizing in the UK: A New Approach for Trade
Unions?’
International SocialismJournal (27th June, 2011); ‘Britain’s trade unions, the shape of
things to come’
Metcalfe, David (2005); ‘British Unions: Resurgence or Perdition?’
Milo, Dan (17th July 2011); ‘Unite launches cut price membership for students and
the unemployed’, The Guardian.
Newcombe, Tom, (20th December 2013); hrmagazine.co.uk
Observer Editorial, (7th July 2013); ‘We need unions, but not a Labour’s banker’, The
Guardian.
Rose, Ed (2008); Employment Relations, 3rd Edition
Terry, Michael (2003); ‘Partnership and the Future of Trade Unions in the UK’
William, Steve (2014); Introducing Employment Relations - a critical approach
Wright,ChrisF., (September2011); ‘Whatrole for trade unions infuture workplace
relations?’,Universityof Cambridge
www.gov.uk,(2012);Trade UnionMembership:Statistical Bulletin
www.legislation.gov.in
www.nationalarchives.gov.uk

10. www.unionhistory.info/timeline