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Network on Organized Labour in the 21st Century: Progress Report Labour and Society Programme
DP/101/1999
ISBN 92-9014-609-5
First published 1999

Network on Organized Labour in the 21st Century: Progress Report

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Network on Organized Labour in the 21st Century: Progress Report
TABLE OF CONTENTS

*Introduction

*1. The network exercise: Some preliminary comments
*1.1 Changing patterns of employment and union membership
*1.2 Change in labour-management relations
*1.3 Public status of trade unions
*1.4 Challenges in a hostile economic environment
*1.5 The international economy: A threat to national trade unions?

*2. The next steps

*List of contributors

Network on Organized Labour in the 21st Century:

Progress report

Introduction

Early in 1998, the International Institute of Labour Studies launched a programme on "Organized Labour in the 21st Century" with the following objectives: to investigate the challenges facing trade unions; to present an overview of their varying responses, and to identify the policies and activities which have proved particularly successful in different regions of the world.

In order to implement the programme, the Institute established an electronic network which was designed to link trade union practitioners with the academic world. The objectives of the network were to:

(i) gather information on the situation and activities of organized labour in the present social and economic context;

(ii) exchange information between unions and the academic community on matters of concern;

(iii) disseminate ongoing research on organized labour; and

(iv) provide a forum for interactive discussion on union priorities and strategies.

As a first step in programme implementation a document entitled "Network on Organized Labour in the 21st Century: An Invitation to Participate" was put on the Institute web-site. The document summarized the main problems facing unions today and raised a number of questions about union responses. Labour specialists and trade union practitioners were invited to comment on the issues raised.

Feedback on the network paper was arranged in two ways. First, copies of the paper, along with a request to respond to the queries raised, were sent by e-mail or by post to more than 500 persons from a mailing list recommended by the Workers Activities Bureau in the ILO and the ICFTU in Brussels. Second, similar requests were sent to about 100 universities from the Institute's own worldwide network of academic contacts specializing in labour issues. The Institute received approximately 125 responses altogether, including more than 60 substantive contributions which have served as source material for the present report. The authors of these substantive contributions are listed at the end of the document.

The report follows the structure of the network paper, analysing responses to the five main categories of problem identified. These are: (i) changing patterns of employment and union membership; (ii) change in labour-management relations; (iii) public status of trade unions; (iv) challenges in a hostile economic environment; and (v) the international economy: a threat to national trade unions? Each section summarizes the problems identified and reports on the responses received. The report synthesizes the information under each section and raised some further points in the light of responses received so far.

The network exercise: Some preliminary comments

The responses were sent on a voluntary basis and the contributors replied in different ways. In some cases they responded directly to each question; in other cases they sent one of their publications relating to the subject and in yet other cases the reply took the form of a discussion of some aspects of the network paper. It should be noted that the regional coverage is uneven. Much of the information came from industrialized countries, most prominently from Australia, Canada, New Zealand, the United Kingdom and the United States. French and Spanish versions of the network paper are in preparation and will be available early in 1999.

The first responses were received through the electronic medium and postal replies began to arrive late in 1998. These will be taken into account when preparing the next progress report.

The present initial report is intended to pinpoint the relevant issues for a meaningful debate on trade union priorities and strategies and to foster a continuing partnership with members of the network.

1.1 Changing patterns of employment and union membership

The network paper highlights the changes linked to globalization. This phenomenon is leading to the decline of traditional industries, the rise of smaller workplaces, the growth of the service sector, and an increasing trend towards privatization. The composition of the workforce is changing, and this has implications for trade unions which have traditionally represented full-time male workers with secure jobs. Unions find that the labour market participation of men and women is becoming more evenly balanced; part-time employment is becoming common; temporary contracts are more widespread; and there is greater use of migrant labour. There are winners and losers in the new patterns of employment: winners have well-paid jobs and technologically-based skills; losers are less skilled, more numerous, insecure and exploited. Unions have yet to formulate their strategies for organizing and representing both winners and losers.

The responses confirm that unions have lost members because of changes in employment patterns. There are significant variations across countries with regard to the pace of change and to the vulnerability of labour and unions.

A great deal of attention is given to the changing structure of employment in manufacturing industries, due to new types of production organization. Large manufacturing enterprises in industrialized countries, which historically employed blue-collar workers in the mass-production of standardized goods, have been re-engineering their production units. The new trend is to establish small- and medium-sized enterprises, with greater reliance on skilled and professional workers. Labour-intensive manufacturing jobs are outsourced to new units within or across national boarders.

This development is linked to changes taking place in the composition of the workforce. Several contributions note that the labour force is becoming increasingly diverse in terms of skills, sex, and ethnicity and that the traditional solidarity platform of trade unions, built on standardized wages, working time, and homogeneous skills, is becoming increasingly difficult to sustain.

The post-war construct of a "normal employment pattern", characterized by full-time jobs with stable career trajectories, and regulated by law and collective bargaining, has been seriously challenged. The challenge is linked to supply pressures in the labour market, involving atypical workers who resort to part-time work, temporary work, subcontracting and/or independent work. Demographic changes leading to a large-scale entry of women into the labour force, either as independent workers or as supplementary earners at different tiers of the skill spectrum, have complicated the emerging situation.

The trends outlined above have led to the creation of two categories of workers who are less represented by trade unions. At one end of the scale are highly-skilled workers, developing new careers and having new aspirations. At the other end are marginal workers, scattered, and prone to exploitation as they tend to fall outside the traditional employment pattern. The first question concerns skilled workers.

(i) How have unions managed to recruit and represent those with new skills and new careers?

The responses do not give a clear profile of the new workers concerned, with mention of white-collar workers, supervisors, professionals and others including self-employed and freelance workers. There is some evidence that skilled workers are showing greater interest in trade unions and that unions have responded by strengthening their organizing efforts.

Among western industrialized countries there is evidence of unions making a conscious effort to organize workers with new skills and careers. For instance, the Canadian unions have attempted to organize new workers in traditional ways. However, it is stated that in Spain nothing has so far been done to recruit the new categories of skilled workers. In the UK, a task force was established by the TUC in 1996 to address general problems of recruitment, but no decision was reached on which union would represent the different unorganized groups. In Singapore the "better-educated" workers, traditionally not covered by collective bargaining, are growing in number and the unions are exploring ways to organize them. A contribution from India reports that young workers, who are educated and take up new careers, support union activities and join the movement.

It has been pointed out that unions are maintaining their strength and even improving their influence in certain sectors and occupations. For instance, in Australia they have reverted to the traditional approach to industrial relations, aimed at better wages and improved working conditions. In India, white-collar unionism has gained ground in recent years; professional workers have become more militant through unionization and their unions have gained greater bargaining power.

Considering that unions have so far given limited attention to organizing skilled workers, some commentators express concern about the possibility of alternative community-based organizations coming forward to represent their interests. One contributor has proposed a practical way of appealing to highly independent up-market employees in the emerging workforce. Unions could strengthen their technical expertise so as to become valuable advisors to workers' representatives within firms. They could play a useful role by setting up "employee consultancies" in the same way that managers have their own consultants. The "union consultancies" could combine their functions with helping workers maintain their skills and expertise. They could provide information on job opportunities, identify legal changes and employer policies and equip employees to make their working lives better. In terms of strategy, this calls for a subtle combination of individual services and collective representation. Some German trade unions have been providing this kind of service to Works Councils and to organizations of teachers and medical professionals for quite a long time.

Another practical approach mentioned by some respondents suggests that trade unions should try to analyse the direction of change in labour markets. Sufficient empirical data are available on the changing structure of employment to forecast the demand for labour by skill categories. Predictions similar to the Canadian Occupational Projection System(Endnote 1) could provide the unions with valuable information for their future organizing strategies. Unions can identify potential sources of recruitment and develop appropriate strategies to respond to the needs of different sectors and occupations.

In the light of the responses examined, new questions for consideration are: Who are the workers at the higher end of the scale, and how would the unions address their need for organization and representation?

(ii) How have trade unions managed to organize the growing numbers of "atypical" workers?

Polarization of the labour force and the growing numbers of people who are socially excluded, raise the question: Is it possible for trade unions to focus simultaneously on workers at the lower end of the market and on those at the higher end? The atypical workers referred to in the question quite clearly belong to down-market categories doing non-standard jobs, namely: part-time workers, those on short-term contracts and seasonal jobs, home workers, and also those hidden in the informal sector. Commentators recognize that these groups are expanding in all countries and that theyare rarely unionized. Unions are increasingly aware that these new forms of employment require new recruitment strategies.

Trade unions seem to be more concerned with part-time workers. In industrialized countries, unions have pushed for government recognition of groups of workers with precarious employment relationships and for intervention on their behalf. The purpose is to regulate their conditions of work and to qualify them for social security benefits. In Germany, unions have included the item "atypical" work on the agenda for collective bargaining, and have demanded that the definition of low-paid part-time work should be legally changed. In the Netherlands, an attempt has been made to organize the employees of temporary work agencies and to secure the benefits of collective bargaining for them. Some of these agencies have agreed to cooperate with the unions in developing acceptable employment relations.

Among the developing countries, it is reported that no serious effort has yet been made by national trade unions to organize home-based and part-time workers in India, although there have been a number of successful attempts at local level. A well-known case is the Self-Employed Women's Association (SEWA) in Ahamadabad. National unions have made a concerted effort to organize agricultural labourers, most of them belonging to the informal sector.

Overall, more has been achieved in organizing "down-market" workers than the upmarket group. Some contributors believe there is a need for additional elements to complement or reinforce the efforts of unions. This might include building alliances between unions and other social movements, a point which is discussed below. A second element relates to the role of the state, which should promote the recognition of unions and the acceptance of minimum employment standards for the protection of vulnerable groups. It is acknowledged that it might be difficult for governments to intervene in labour markets where precarious work relationships provide employers with flexibility and low labour costs.

Union experience with workers at the lower end of the market raises questions about organizing strategies. This point is taken up in Section 3.

(iii) How far has it been necessary to emphasize services to workers as individuals as an incentive to membership, rather than collective representation?

One of the suggested ways for trade unions to retain their affiliates as well as recruit new members is to offer incentives for joining. In different contexts, network respondents indicate that such a strategy has been adopted by unions.

The United Kingdom and Australia are prime examples. In the United Kingdom, this strategy has been one of the main components of the "new unionism" advanced by the TUC. The new service model aims to secure for its members "benefitsranging from wage increases to discounted credit, with minimal active involvement of members themselves". The idea is to make unions more attractive to workers through the development of credit support, insurance, legal assistance, holiday schemes, and other services.

Among the newly industrialized countries, Singapore shows a similar trend, but for different reasons. Members there enjoy the benefits negotiated by the unions when they work in unionized workplaces and lose these advantages if they move to non-unionized workplaces. Therefore, a "general union" was created in Singapore in 1992 to provide services other than collective bargaining; it has been fairly successful in attracting new members. The benefits of general union membership are not lost when workers move into non-unionized workplaces. In Uruguay unions provide private insurance and other services: this became the main focus of their efforts at a time when traditional union activities were banned under the earlier regime. Such services were the main reason why trade unions were authorized to keep their premises open and to collect their fees.

(iv) How have the unions managed to reconcile the competing interests of diverse groups of workers: women and men, native-born and migrant, secure and insecure, low-paid and high-paid? What has been the experience of special representative structures (separate committees, seats on governing bodies, etc) for previously under-represented groups?

The first of these two questions attracted some response, but little material was received on the second one. The difficulty lies in the lack of precise evaluation of the activities undertaken. Most contributors acknowledge that different approaches are required for the mass of insecure and precarious workers, but respondents have not been able to spell out the "competing interests" of these groups. Furthermore, trade union efforts mainly concern women as they constitute the fastest growing group in the labour force. Some unions emphasize the need to target minority groups in recruitment efforts, but no concrete results have been reported in practice. Similarly, the unions refer to a commitment to equal opportunity, but the impact seems limited.

There are some examples of concrete action by unions attempting to reconcile the interests of the diverse groups. This is either by establishing separate committees or groups to represent different categories of workers, or by including representatives of these workers in the machinery of the union. German unions have established special committees for women but no particular account of this experience is given. In the same vein, women in the USA and Canada, as well as in some countries of western Europe, have organized separately, to ensure that their interests and concerns are represented.

The case for organizing women separately is strongly defended by certain academics. One contributor argues that if special representation is coupled with an "integrationist approach", unions will be able to avoid the marginalization of women's concerns and to reconcile the competing interests of various groups. They would build a stronger union movement by taking account of special needs, thus developing a basis for "unityin diversity".The integrationist approach has been tried in Scandinavia where women and/or young people are candidates for union office or are given a seat on the board of the governing body. One commentator mentions that Scandinavian unions have made significant advances in this field and that there are useful lessons to be learned from them. Unions in Uruguay have established a Commission for Women which, inter alia, encourages the appointment of women to posts on the governing bodies of unions while, at the same time, increasing the number of women representatives.

Some contributors argue that a starting point for unions to extend their representative base is for them to listen to the demands of various groups of under-represented workers. In order to achieve this, they should establish links with institutions outside the workplace such as churches, nongovernmental organizations and community groups. One US contributor asserts that this is all the more important in view of the fact that disadvantaged groups are making more pressing demands to be represented.

In the light of the responses reviewed in this section, the following two questions require special attention: (i) Would it be possible for unions to define the criteria for identifying special target groups for interest representation? (ii) What has been the experience of special representation (separate committees, seats on governing bodies, etc.) for previously under-represented groups?

(v) Where it has proved impossible to establish effective collective bargaining arrangements for certain sections of the workforce, what other means have been used to ensure basic employment rights and minimum standards of wages and conditions?

Contributors take the position that support and cooperation from the state are essential preconditions for ensuring fair employment standards and minimum wages. The establishment of employment standards in most countries has been preceded by legal recognition of trade unions and collective bargaining. Whether and how far the minimum standards can become operational in any country without pressure from the workers remains an open question.

The role of trade unions in negotiating and establishing a minimum wage within the framework of a social pact has been discussed by some university commentators. This point is analysed in Section 4, together with responses on the public status of unions.

1.2 Change in labour-management relations

The traditional system of industrial relations, where wages and conditions of employment are regulated or negotiated collectively, at national, sectoral or enterprise level, is underthreat. The parameters have changed and the new environment is characterized by greater mobility of capital, more autonomy for individual enterprises, increased competition on wages and labour costs, and less support by way of government intervention in labour markets. Employers have adapted to this new environment by restructuring production, establishing new patterns of work organization and/or by relocating production units. They have also defined their own system of industrial relations, different from national or sectoral arrangements. Consequently, there is a move towards individualism, coupled with new strategies to make employees identify more closely with the company. Trade unions have had to adapt their structure and strategies in order to represent workers in the new environment.

(i) How have unions adapted their own structures in response to the decentralization of industrial relations? What systems of workplace representation have been created, and how are these linked to the official union machinery?

Most responses confirm a general trend towards decentralized bargaining at enterprise level. There are two distinct strands to this tendency. In the industrialized world, among enterprises with a significant number of skilled workers, the dominant trend is towards a consolidation of the corporatist and non-adversarial relationship between labour and management. This is evident in continental Europe where it is encouraged and institutionalized by governments through Works Councils. Elsewhere in the industrialized world labour relations are becoming more decentralized and deregulated. In the newly industrialized and developing countries the picture is mixed, so that there are varying combinations of the two trends.

In continental Europe, centralized bargaining and consultation have been maintained. Negotiations continue at sectoral level, although agreements are increasingly reached at local level. The new institutions governing labour management are built on existing structures based on centralized bargaining. These are also intended to reinforce the present arrangements through a mix of control and consensus. The existing institutions seem to have influenced the choice and content of European responses. The presence of industrial relations systems with traditionally strong unions, legislation, and co-determination have discouraged employers and governments from deregulation.

Examples of the ways in which European unions are adapting to decentralization indicate the emergence of two strategies. First, unions either promote or move towards "micro corporatism". This means cooperating more with employers on a range of flexibility issues at workplace level, and seems to apply even to unions which traditionally took a conflictual stance. Second, in countries where national or sectoral bargaining is firmly entrenched and institutionalized, as in Germany, trade unions have responded to employers' requests to make national or sectoral agreements more flexible. Unions are trying to find means to "open" industry-wide collective agreements. For instance, working time can be negotiated at firm level in the framework of general norms, without compromising the role of unions in wage bargaining. In Spain, union representatives have room for manoeuvre at local level, even if sectoral collective agreements remain the norm for wage bargaining.

In other industrial countries, public policy seems to be more in favour of deregulating industrial relations. Collective bargaining in these countries tends to be carried out in an adversarial setting. Some commentators argue that bargaining is becoming increasingly fragmented; there is a shift towards enterprise bargaining which, inter alia, tries to avoid minimum wages, adopt non-union agreements and promote individual employment relations. It is reported that unions representing workers at the higher end of the market have opted for labour management cooperation on flexibility issues, and this is described as a pragmatic response to the growing power of management.

Both centralized and decentralized union structures are reported among the newly industrialized countries. Centralization facilitates the pooling of resources and promotes solidarity, while decentralization allows greater flexibility in bargaining. Among the developing countries, enterprise unionism and local bargaining are being supported by the more educated and career minded workers in India.

As the trend towards decentralization continues, growing importance is given to Works Councils. One successful test case is the well-known experience in Italy, where the trade union movement, in agreement with the State and employers' associations, has created a new institution in the workplace similar to the Works Council (Rsu). All workers can elect representatives from within or outside the union who sit in this forum. A majority of seats have in fact been won by the unions. The employers are reportedly satisfied with the new institutional structure for workers' representation. Another recent example is from South Africa where workplace forums were created in 1996, in order to establish joint decision making and consultation between management and workers at shop floor level.

It may be concluded that a number of unions have adapted to the new environment by changing their traditional structures. They are keen to remain key players in collective bargaining, even if this means making concessions. The new structures guarantee the presence and visibility of unions. However, such encouraging findings do not imply that the responses are uniform across countries. There are instances where decentralization threatened the institutional structures, and produced new forms of participation promoted bymanagement to bypass the unions. This development will be reviewed in the next section.

(ii) How have unions responded to "human resource management" initiatives? In what ways does the argument of "humanization" help unions?

Human resource management initiatives include quality circles, teamwork, productivity-linked wages, profit sharing, and performance-based rewards. These techniques have been adopted in many countries to raise productivity and to help employees identify more closely with the enterprise through "direct participation".

Trade union reactions to these initiatives are varied and depend on the industrial relations scene in the countries concerned. In the United States, such techniques have long been seen as an alternative to trade unionism, rather than as good practice to be implemented in consultation with the unions. It appears, however, that many unions are currently adapting to HRM initiatives. For example, some unions have accepted "formal quality programmes", with workers meeting regularly to discuss workplace issues. Survey data from the US Government show that the most productive workplaces are those where unions have adapted to these methods. It also notes that productivity is lower in non-unionized workplaces where such techniques have been tried and also in unionized firms where industrial relations are adversarial. At national level, both in the USA and in Canada, trade unions seem to consider HRM initiatives as anti-union, but at local level, some instances of cooperation are reported to be successful.

In Europe, it is reported that HRM practices in a non-union environment are largely resisted, especially in Austria, Germany, and Sweden. Pressures for change in Germany have been accommodated by changes in labour market institutions. The existing institutions significantly reduce managerial discretion in the area of human resource management. This could be explained by the relative stability of the centralized collective bargaining system and by the presence of Works Councils which permit labour to work with management and which also act as a counterweight. Human resource management instruments have entered the sphere of German industrial relations, but they have been negotiated with the social partners. Unions and Works Councils do not reject these instruments but attempt to regulate them at firm and plant level. For example, IG Metall holds intensive consultations on the regulation of "group work". One network respondent suggests that a "pluralistic" model of HRM accommodated by the unions, as opposed to the unitarist model in the USA, might eventually emerge as the dominant form in Europe.

Unions in Singapore respond favourably to HRM initiatives; they sit on bipartite committees and try to ensure that HRM policies do not compromise the rights and benefits of workers. In India too, there are indications that HRM methods are becoming more popular. Performance-based rewards, teamwork, and direct communication with employees are promoted in newly established enterprises. In Africa, HRM is spreading in countries such as Ghana, Uganda and Zambia, although it is perceived to be undermining the collective representation of workers' interests. It is reported that new HRM strategies are designed to sidestep existing labour institutions and to deal directly with workers with a view to enticing them away from the union fold. Commentators from Uruguay also report the spread of HRM practices, noting that unions are reluctant to accept these initiatives.

Taken as a whole, the responses indicate that many unions have found ways to adapt to management initiatives and to work within the framework of institutions which complement collective representation. Some contributors point out that unions could act as watchdogs, using such initiatives for the advantage of the workers they represent, thereby limiting the disadvantages of HRM policies for workers.

The concept of "humanization of work" was not mentioned in any of the responses received at the date of writing this report.

(iii) How have unions been able to win broader community support in resisting anti-union employers?

None of the responses answered this question directly. A number of contributions emphasize that anti-union employers still exist in many countries but little information is given on union attempts to gain recognition by these employers. The only example comes from Uruguay, where unions have attempted to make the public aware of anti-union employers by distributing leaflets and by using media channels. This question is linked to question 3 (iii), on ways of building alliances with other organizations and bodies.

1.3 Public status of trade unions

In many countries, unions have historically achieved a publicly recognized status as representatives of workers' collective interests. This might mean that they have an exclusive right to negotiate collective agreements; that they are members of tripartite bodies; that they are consulted by governments on social and labour market policy; and that they participate in the administration of welfare benefits. However, the public status of unions could be under threat where membership is declining and rival forms of collective organization are emerging.

Unions lack public status in a number of countries where attempts to win recognition have met with resistance. This is true in the newly industrialized countries where governments have promoted industrialization at the cost of workers' rights. It is also true of countries where employers' anti-union practices are not efficiently sanctioned.

(i) How have unions succeeded in proving that they genuinely reflect the views of their members: for example, by renewing their links with the rank and file, improving workers' education, and strengthening internal democracy? What use has been made of media channels such as video, e-mail and web pages?

Two different patterns emerge, reflecting regional differences. In developing countries trade unions are searching for a new identity, while in the industrialized world they are trying to gain lost ground through membership campaigns.

Commentators express different views on the public status of unions in developing countries. First, it is reported that a lack of trust on the part of members is damaging the image and popularity of the labour movement. India is cited as a case where anti-union feeling is present. Similar views are expressed in the African context, where some unions are handicapped by the alleged absence of internal democracy and weak communication with the rank and file. In Ghana, however, strong internal coherence is reported in the national trade union movement, as a result of internal democracy and educational programmes which have been adopted since 1983. Second, unions are making a conscious effort to reduce their dependence on the state: many African countries display this trend. In Mexico, a new confederation of trade unions has emerged, which claims to be independent of state patronage. No further comment has been received on the Mexican case.

In transitional economies such as China and VietNam, the trade union movement is facing simultaneous challenges and opportunities in its attempts to transform itself from a "welfare organization" into a body promoting the participation and representation of workers. It is also trying to redefine its role in order to obtain support from workers at national level.

Against the background of declining membership in industrialized countries, several unions have tried to reform their movement by developing a grassroots strategy. The best known model comes from the United Sates, where the AFL-CIO and other affiliated unions have developed an "organizing model" which attempts to mobilize individual workers into a type of mass movement devoted to solving their problems collectively. Educational programmes for the rank and file delivered by trainers from local or national offices are important elements of the organizing model. The model has prompted strong campaigns for union recognition, strikes and political action. As a result, some victories for unions and gains in membership, although localized, have been reported. The organizing model is advocated as an effective instrument for attracting workers from different groups, such as women and ethnic minorities, and for strengthening internal democracy.

Taking its lead from the AFL-CIO, the Trades Union Congress in the UK emphasizes the development of an organizing model, although some British academics express serious misgivings about its practicality. The use and significance of this model in the broader context of developed and developing countries needs to be discussed further.

Other commentators point out that unions might attract new members if they improve the services they offer. This strategy is emphasized in relation to workers' education programmes, which have always been an important element of union activities. New skill requirements have emerged which could be met by education and training organized by the unions. Since unions may not have the necessary resources to cover such training and education, they could form alliances and networks with established training institutions at local and/or community level.

None of the contributions received at the time of writing this report addressed the second part of the question, dealing with the use of media channels.

(ii) Where the status of trade unions has been threatened - or never recognized - has it been useful to press the argument that trade union rights are basic human rights?

Too few responses were received to permit any general statement on this question. One commentator observes that countries can be categorized according to the degree of influence which trade unions exert on government policies. In some countries, unions have a decisive voice and they can influence social pacts as well as the human rights agenda through trade policies. Governments in other countries can ignore the unions without incurring major problems; in these cases unions have little influence on social policy or human rights concerns.

Some commentators point out that the promotion of human rights is necessarily linked to the presence of democratic institutions. For instance, in Nepal where a new constitution has been put in place, the unions anticipate that the Government will help build a democratic system of industrial relations.

The presence of democratic institutions also implies a functioning multi-party system. This observation is made with particular reference to African countries where unions have been involved in decolonization. Subsequently, they built a nexus with the state apparatus, and have only recently begun to establish themselves as independent bodies. It is particularly significant that unions in Ghana have organized workshops and seminars focussing on human rights issues.

Some contributors draw attention to the hostile attitude of certain governments in industrialized countries towards the trade unions. Government policy and the national legal framework can adversely affect union status and position: the UK is a typical example. The same is true of some developing countries. For instance, the Governments of Ghana and Zambia have apparently tried to change legislation and restrict unionization with a view to attracting foreign investment. Union opposition has only had a limited impact.

The issues raised by the above question obviously need further consideration. Unions should have the necessary resources at their disposal for advancing the human rights agenda.

(iii) In what ways have unions been able to build alliances with other bodies concerned with workers' rights and interests, outside the workplace as well as within it?

Many contributions refer to alliances between unions and other organizations. These may be political bodies, local community groups, women's groups, churches, or nongovernmental organizations, all of which generally operate outside the workplace. There seem to be three main reasons for building alliances. First, unions develop contacts with political parties or groups in order to strengthen their position and to claim recognition. Second, they associate with other groups which can help them achieve their objectives, including a possible increase in membership. Third, they reach out in order to broaden their agenda and play a more social role. The contributions give some examples illustrating the second and third objectives.

Unions associate with other groups in order to gain support for their actions and to broaden their membership base. Alliances are built with organizations representing groups present in the workplace. For instance, the unions have established strong links with feminist groups in Canada. In the US, they have built community coalitions with churches and other groups around political and economic issues including collective bargaining. Most of this work is done at local level.

As to the third objective, some contributors propose that unions should expand their traditional role of defending the economic interests of workers. They should act as a true social partner, helping people outside the workplace and voicing their concerns collectively. This role has a universal relevance in industrialized, newly industrialized and developing countries. The rationale is that labour movements are democratic organizations having a strategic position in society, and that their agenda should therefore address more than work-related concerns.

Alliances with other representative groups are well-documented in Europe. Trade unions contribute to local partnerships with public authorities, employers, voluntary organizations and local community groups. In Belgium there is increasing trade union involvement in local development initiatives and social enterprises, whilst the target of the local partnership in Ireland is to combat long-term unemployment.(Endnote 2)

The contributions discuss the social role of unions outside Europe. For instance, it is suggested that African unions should liaise with NGOs in order to represent the informal sector. In East Asia it is argued that unions should go beyond their traditional role and promote human rights in collaboration with other actors in civil society. In Hong Kong (China), for example, unions are reported to be involved in social and community affairs. Union federations have formed social affairs committees and built alliances with community groups. In South Africa the National Economic Development and Labour Council (NEDLAC) was established in 1994 as part of an attempt to reach a consensus on economic and social policy between organized labour, employers, and community-based interest groups. The Council is an innovative instrument for giving voice to marginalized groups such as the unemployed, the disabled, women and young people. In Uruguay, unions have formed alliances with NGOs, churches and cooperatives in order to address the employment situation, and have submitted a list of proposals for job creation to the Government. These examples indicate that unions are increasingly aware of the need to extend their social role.

1.4 Challenges in a hostile economic environment

Trade unions have been successful in periods of economic growth and full employment. Strengthened bargaining power makes it possible to share the gains and to persuade governments to improve welfare benefits and public services. Such favourable conditions are now long past. The fear of unemployment can make workers reluctant to join a union or continue their membership. A less favourable labour market reduces union bargaining power. Collective bargaining often means sharing the costs of retrenchment, and concessions contribute to disenchantment. Reduced economic strength has affected the political influence of the unions. Governments feel less need to take account of their views, especially in a climate of tough monetary discipline, curbs on public spending, privatization of utilities and public enterprises, and deregulation of labour markets.

(i) What initiatives have unions taken to influence government policies - at local, national and perhaps international level - for economic development and job creation?

It appears that union initiatives have been taken principally at national level, but they are also discussed at local level in some instances. Different patterns emerge in different regions.

In the Anglo-Saxon countries, some commentators report that relations between trade unions and governments have deteriorated, irrespective of the political party in power, and the position of trade unions has been weakened by a hostile political environment. This has been the case particularly in the UK and New Zealand during the last two decades.

In other European countries, a different picture emerges. The Maastricht criteria for monetary union have reduced the room for manoeuvre of governments and trade unions, and persistent high levels of unemployment have made the problem more difficult. Some governments are keen to associate trade unions with social and economic policies, which are translated into "social pacts" or "employment pacts". This has been reported in Denmark, Germany, Italy, and the Netherlands. This "revival of concertation" finds concrete expression in Italy where, in September 1996, a pact was signed to promote employment, with special attention to the less developed areas of the country. The pact is a tripartite agreement which includes significant elements on educational reform, training and the reduction of working time. In Germany, a similar national pact was proposed, but not finally agreed. Spanish trade unions are cooperating with government policies, especially with regard to job creation and regional development. In Greece, the General Confederation of Workers has associated with the State and with employers' organizations in setting up committees on specific problems such as long term unemployment.(Endnote 3)

While entering into the above social pacts, unions have made several concessions. Many have accepted wage restraints in exchange for assurances that jobs will be created or at least maintained. Such agreements have been negotiated in Finland, Germany, Ireland, and Portugal. In Spain, the unions have agreed to far-reaching changes in legislation on retrenchment and severance pay with a view to encouraging job creation.

There is evidence in European countries that unions are active locally in preserving jobs and combatting unemployment. In Italy and Germany, regional or district level social pacts have been negotiated with the State and local governments in order to promote investment in areas of high unemployment and low development. Unions in Germany have also reached agreements at sectoral and/or regional levels. For example, a 35 hour week has been negotiated in some sectors and regions, though not extended nationally. The same type of negotiations take place for early retirement schemes, part-time work, educational leave and family leave. Furthermore, collective agreements on job stability have been reached, such as in Volkswagen, where unions have negotiated ways of avoiding retrenchment.

The Treaty of Amsterdam provides for active trade union involvement in the design of policies and programmes to combat unemployment in the European Union.

In the newly industrialized countries, the context is clearly different, but unions have indeed played a role at national level. Generally, unions concur with government decisions to limit the number of foreign workers entering the labour market. Trade unions in Singapore cooperate with the State and the employers in efforts to maintain full employment; the social partners try to set wages at levels which maximize employment. Unions are members of tripartite committees, including a National Wage Council, and in the past have accepted temporary wage cuts in order to save employment. In Hong Kong (China), unions are not part of such an integrated relationship, but they have pressed for legislation on labour conditions and social security through other channels.

Developing countries, particularly in Africa, are going through many changes. One commentator notes that tripartism, as understood in the context of industrialized economies, does not necessarily apply to all African countries. A number of unions have just started to affirm their autonomy, and in order to derive benefits from tripartite bodies or policies their independence must be fully gained and preserved. Another commentator reports that unions are having some success in negotiating comprehensive social pacts. In South Africa, this is the case at both the national and local level. Since the establishment of a social dialogue structure in the late 1980s, there have been a number of agreements on major social and economic policies at national level. Among the industries most exposed to globalization, such as mining, motors, textiles and clothing, unions took the lead at sectoral and local level, creating institutional forums to negotiate the pace of liberalization. Unions have been active, submitting proposals for alternative employment, as well as offering counselling and retraining to workers who are made redundant. In developing countries, such social pacts are being established or are being renegotiated in countries where they broke down in the context of austerity plans.

(ii) What part have unions played in new "supply-side" measures to improve the position of the unemployed and of new entrants to the labour force?

This question attracted little response. It is reported that unions are involved in upgrading skills to improve employability and worker productivity in Singapore. Some commentators draw attention to the potentially significant role which unions could play in this field, proposing that they should invest heavily in continuous upgrading and worker training. Clearly, there is need for more information on this subject. The paper, "A new agenda for trade unions", prepared by Richard Hyman for the meeting, addresses some of these issues.

(iii) What policies have unions adopted towards alternative forms of work organization - for example, workers' cooperatives?

This question is linked to the service model of unionism, but the comments do not constitute a specific reply. The single example provided concerns Singapore, where unions went into consumer cooperatives in the 1960s and have since established their own cooperative ventures, enhancing worker ownership and control.

(iv) How have unions addressed the need to create - or defend - effective social security provisions?

In the industrialized countries, many unions defend the current system of social security, aiming to extend it to cover the maximum number of workers. Unions in Germany have put pressure on the Government to include atypical workers in the social security system. There are also instances of unions taking up the cause of the unemployed in relation to social security cover. When the Governments of Germany and France proposed to reduce benefits and/or abolish certain provisions, unions mobilized workers to oppose such measures.

There have also been cases of unions making concessions on social security provisions. In Spain, Government proposals to reduce the scope of certain provisions were accepted by the labour movement on condition that the money saved would be reallocated to job creation. Similar concession bargaining has also been reported in Australia and Finland; in the former case this was apparently resented by some union members.

In the newly industrialized countries, unions have played an important role in shaping social security systems which differ from those in industrialized countries. In Singapore, unions provide welfare benefits to members and also participate in a sophisticated mechanism for mobilizing savings. Workers and employers together contribute a significant share of their earnings to the Central Provident Fund which has become an important pillar of the Singapore economy. Unions have also pushed for the establishment of a pension system in Hong Kong (China), although this has not yet been put in place.

In transitional economies such as China and Vietnam, unions are increasingly entrusted with the funds and the responsibility of administering social security schemes. In developing countries, particularly in Africa, it is suggested that the unions should, as a matter of policy, strive for the introduction of a social wage for all citizens. The social wage should ideally provide the minimum income for a secure livelihood, access to education, health, shelter and a safe environment.

Commentators from the USA have mentioned that, at the beginning of the twentieth century, the US labour movement provided union-financed and union-controlled social welfare benefits such as unemployment compensation. The emergence of the welfare state, along with other factors, meant that the unions surrendered this function to the State. It is interesting to consider whether unions have the capacity to revive effective and independent social security schemes.

1.5 The international economy: A threat to national trade unions?

Industrial relations are rooted in agreements between the national social partners, supported by national legislation. However, the globalization of markets and the growing importance of multinational enterprises threaten such national systems for three main reasons. First, the growth of regional or global markets means that decisions which affect national labour markets are often taken outside the country concerned. Second, labour costs affect national competitiveness, shape corporate investment decisions, and constrain national collective bargaining. Third, ensuring the stability of the national currency may involve deflationary economic policies, which are often not in the interests of labour.

(i) In what ways have unions been able to exchange information, coordinate policies and undertake common activities internationally?

The majority of contributors refer to the industrialized countries where unions have managed to exchange information, coordinate policies, undertake common activities and develop a general solidarity in response to internationalization. Newly industrialized countries address the problem in the same way, but sometimes from another point of view. They are at an early stage of integration into the global market and their immediate concern may be to derive maximum benefit from globalization.

The attempt to strengthen unions' international links is not a new phenomenon; labour organizations have tried to do this ever since they were created in the nineteenth century. They have achieved it mainly through the creation of International Trade Secretariats and by developing cross-border contacts for mutual support. One question addressed by some commentators is whether this trend will continue and whether the national regulatory power will be transferred to new institutions at the supra-national level. It is clearly too early to give a definite answer, and this needs to be investigated further.

With regard to the concrete actions undertaken by trade unions, responses indicate two distinct trends. Unions undertake activities at the international as well as the regional level. At the international level, they operate within the framework of formal institutions, usually international secretariats and confederations. Through these institutions, they have managed to influence the behaviour of transnational companies. One instance is the agreement negotiated with Danone which enhances union rights and promotes labour standards. Unions have also developed informal ways of coordinating their strategies. They meet at global level in order to compare conditions and coordinate campaigns for trade union rights and labour standards in relation to specific companies or sectors.

Trade union activities are reported at regional level, but they vary according to the region concerned, the European Union representing the line of demarcation. Progress in the MERCOSUR region is reported to be quite significant and some commentators note a dynamic exchange of information, especially concerning working conditions, and also an attempt to create a representative body of trade unions at regional level. In Canada, Mexico and the USA, cooperation has been established between unions within the framework of NAFTA. Some contributors draw attention to the recent waterfront dispute in Australia which showed how the international trade union movement could provide timely assistance to unions in individual countries.

Within the European Union, the process of economic and political integration has led to the formulation of common labour standards at regional level, and the establishment of new institutions giving voice to workers at the macro level. The infrastructure created in the process has promoted an exchange of information and the development of cooperation between national unions.

The unions are members of tripartite bodies such as the Economic and Social Committee and the Standing Committee on Health and Safety. They are consulted on legislative proposals and have strong links with the European Parliament. Since the Treaty of Maastricht, unions are regularly consulted on the content of social policy and also entrusted with some responsibility for policy implementation. There is a discernable trend towards organizing dialogue between the social partners at sectoral and inter-sectoral levels. In this respect, the conclusion of a European collective agreement on parental leave and part-time work is an interesting development. A final element is the dialogue which takes place at company level. EU legislation provides for the establishment of European Works Councils in transnational companies. The new forum has to be informed and consulted on transnational management policies and decisions that affect employees' interests. New networks might stem from such bodies which in turn could strengthen the unions at the international level.

Some commentators point out the drawbacks of the new institution, which is still at an early stage. Firstly, European legislation does not explicitly recognize unions as the workers' representatives. Secondly, the European Works Councils do not meet frequently enough to establish effective communication channels. Finally, European Works Councils are only designed for information and consultation, which might be controlled by management.

International cooperation between trade unions is progressing. They have expanded the scope of activities without giving up their national functions. The question is whether they can go further and become proactive, influencing policies and international treaties for the protection of labour standards.

(ii) Given that most union members are primarily interested in questions which directly affect them in their own workplace, how have unions succeeded in informing them of the importance of international issues?

The comments received do not respond adequately to this question. Some commentators mention that internationalization of trade union activities might mean that unions risk losing sight of members' interests at local and national levels. This question remains to be considered in greater detail.

2. The next steps

The network exercise was undertaken as an experimental venture. The Institute and its counterparts were uncertain about the outcome and, partly as a precautionary measure, the Institute has also launched a second track of research into union successes and failures in different countries. Sixteen case studies dealing with trade union responses to globalization are being organized in the following countries: Brazil, Canada, Chile, Ghana, India, Israel, Japan, Korea, Lithuania, Niger, South Africa, Spain, Sweden, Tunisia, the USA, and Zimbabwe. The aim of these studies is to survey how far the unions in each country have adapted to a changing environment by organizing new constituents; adjusting their structure and finance; addressing new concerns; forming new alliances; and formulating a new agenda for collective action. They will document union strategies in different economic and geographical settings with a view to preparing a comparative analysis for policy debates. The case studies are due for completion in mid-1999 when they will be brought out as working papers/monographs of the Institute.

The activities under Track 1 proved to be dynamic and encouraging even in the early stages. The end of 1998 saw an acceleration in the pace of communications and responses from network participants. It appears that the network has established a solid base and is poised to take off.

The present report summarizes the early responses to the network survey. It was prepared as background material for the meeting held in December 1998 on "Organized Labour in the 21st Century". Participants also examined some individual contributions which were specially prepared to complement these responses. Based on this review, the meeting was expected to look at the future activities of the programme and to suggest ways of obtaining better results.

At the beginning of this report, we listed the main objectives which were established when the network was initiated. They may be grouped into two types of activity: (i) gathering information on the situation and analysing the activities of organized labour, and (ii) exchanging such information and analyses and providing a forum for interaction between the Institute, union practitioners, and the academic community.

In the light of experience gained at the initial stage of organizing the network, two questions need to be addressed. First, are we on the right track in relation to the original objectives? Second, how do we make the best use of the outputs generated through the programme? The meeting was expected to consider these two questions. The discussion was structured under the following four headings: (I) The content of responses to the network document; (II) The methodology used; (III) A revised document on the network; and (IV) The final output.

I. The content of responses to the network document

Not all the questions raised in the network paper were addressed. Those which elicited weak responses have already been identified in this report. They relate to the following topics:

(i) Union experience in paying special attention to previously under-represented groups, such as women and minorities, within union structures and in promoting the interests of these groups (especially concerning gender issues) in the workplace.

(ii) Means at the disposal of unions for ensuring that basic employment rights and minimum wages are respected, especially in countries or regions where effective collective bargaining has not been established. Union strategies to win broader community support in resisting anti-union employers.

(iii) Measures promoted by unions to improve the position of the unemployed as well as new entrants to the labour force.

(iv) Unions as development partners in society. (The paper by Henk Thomas addresses subjects related to this topic).

(v) Unions and the human rights agenda, especially the argument that trade union rights are basic human rights.

The papers presented by some of the participants at the meeting filled a number of gaps. Participants were also invited to provide further information and analysis of these issues.

II. The methodology used

A review of the methodology used in the network leads to the following observations:

(i) The network did not really reach out as expected to the trade unions. In this respect, it should be noted that:

(a) there were fewer responses from unions than from the academic community, and that very few trade union leaders replied.

(b) not all trade union offices are linked to the Internet, and this has clearly reduced the flow of communication from unions.

(c) The use of alternative means of communication (letters and faxes) was, however, sufficient to generate some meaningful responses.

It should be possible to encourage the unions to become more active in the network and ensure they make the best use of its output. The meeting discussed possible ways of reaching this goal.

(ii) The geographical coverage of the responses needs to be improved. There are serious difficulties in receiving information and analysis from the developing countries of Africa, Asia and Latin America concerning the present situation of trade unions and their perspectives for the future.

It is proposed to organize regional meetings with a view to obtaining on-the- spot data and ideas which are not available through the network. The Institute intends to hold such a meeting in each of the above regions during the coming three years.

(iii) The network should become a fully interactive exercise, which means putting a substantial proportion of the contributions received on the Internet. This would create a genuine forum for debate and also encourage participants to disseminate their own work. The web-site would also serve as a compendium of information on matters of concern to labour and unions.

III. A revised document on the network

Two sets of issues need to be considered.

(i) Was the network paper fully understood by the potential contributors? A good deal of attention was given to the clarity and readability of the first network document. Was the effort successful? There are linguistic barriers to overcome if the paper is to reach out to a broad spectrum of union membership all over the world.

(ii) Some aspects may not have been sufficiently developed or emphasized in the network paper. Such issues are listed below:

(a) Trade union action at local level. Reference has been made to a report reviewing recent experience in Europe.(Endnote 4) There is a need to know if the same type of action is carried out in other regions.

(b) New frontiers for trade union action at transnational level. There is a lack of precise information on labour-management relations in multinational enterprises. (The paper by Robert Taylor addresses some questions related to the topic).

(c) The role of trade unions in small and medium-sized enterprises. Obstacles to unionization are numerous. For example, the workers concerned are more dispersed; the employers normally maintain direct personal relations with the staff, making the intervention of a workers' representative more difficult; and the size of the enterprises does not permit sophisticated labour-management structures.

(d) The role of unions in defending and promoting the interests of the unemployed and the under-employed as well as workers in precarious employment. Here again, the obstacles to unionization are numerous. However, by defending and promoting the interests of the workers the unions can become useful vehicles for social integration.

(e) Unions in the informal sector. This implies a detailed assessment of two related issues: firstly, the role of unions in improving the conditions of workers in the informal sector, and secondly, working with other organizations to realize such goals.

(f) Given the current trend towards diversification of union activity (in enterprises and sectors, at local, national and transnational levels), there is a need to coordinate activity at different levels.

(g) Benefits and drawbacks of union mergers. The subject has assumed great importance in both developed and developing countries, but the possible outcome has not been fully assessed.

(h) The economic impact of unionization. Is there still a need to study whether trade unions contribute to economic growth and productivity? Is it possible to measure with any degree of certitude the economic impact of unions? The social and political roles which unions play in society are deeply rooted in the culture and traditions of that society. Such roles are not amenable to quantitative measurement.

IV. The final product

Two types of end product are envisaged.

A set of publications - monographs, working papers, and a final report.

(ii) A network which remains active and makes it possible for participants to contribute to the policy debate. This requires considerable planning of follow-up activities in the regions with a view to ensuring that the products of the network and the knowledge base are passed on to the appropriate target groups, and that these groups are equipped to participate effectively in an ongoing debate on the future of trade unions.

Network on Organized Labour in the 21st Century

List of contributors


Adams R.J., McMaster University, Canada
Adhikari R., Tribhuvan University, Nepal
Akpokavie C.K., World Confederation of Labour, Belgium
Akwetey E., Stockholm University, Sweden
Babace H., Universidad de la República, Uruguay
Barbagelata H.H, Universidad de la República, Uruguay
Barretto-Ghione H., Universidad de la República, Uruguay
Beng C. S and Chew R, Nanyang Technological University, Singapore
Briskin L., York University, Canada
Campero G., Ministerio del Trabajo y Previsión Social, Chile
Carriere P., ICFTU, Belgium
Chang H-J., Cambridge University, United Kingdom
Clarke S., University of Warwick, United Kingdom
Claussen T., Rogaland Research, Norway
Cornfield D. B., Vanderbilt University, United States
Crouch C.J., Instituto Universitario Europe, Italy
De Bueno Lozano N., Universidad Nacional Autonoma de Mexico, Mexico
Deutsch S., University of Oregon, United States
Dombois R., KUA-University of Bremen, Germany
Duthoit M., ENSAR, France
Edgren G., Swedish International Development Cooperation Agency, Sweden
Engelen-Kefer U., Deutscher Gewerkschaftsbund, Germany
Evans J., Trade Union Advisory Committee to the OECD, France
Fairbrother P. and Carter B., University of Warwick, United Kingdom
Forsyth A., Transport Workers Union of Australia, Australia
Garver, P., IUF, Belgium
Giuzio G., PIT-CNT, Uruguay
Harcourt T., ACTU, Australia
Harrison M., Bar-Ilan university, Israel
Haworth. N., University of Auckland, New Zealand
Kester G., Global Participation Development Programme, The Netherlands
Khan N. I., Bangladesh Institute of Labour Studies, Bangladesh
Landsbury R. D., The University of Sydney, Australia
Levin D. A ,University of Hong Kong, China
Lyon-Caen A. Institut International de Paris, France
Mamkoottam K., University of Delhi, India
Martens G., ICFTU, Belgium
Mathur A., University of Tampere, Finland
Müller H-E., Berlin School of Economics, Germany
Muller M., University of Innsbruck, Austria
Navarro V., Johns Hopkins University, United States
Nikoli M., Belgrade
O'Neill R., Workers' Health International Newsletter, United Kingdom
Ogden M., ACTU, Australia
Panford K., Northeastern University, United States
Plà-Rodríguez A., Universidad de la República, Uruguay
Ramsay H., University of Strathclyde, United Kingdom
Regini M. and Regalia I, Università di Milano, Italy
Richardson C., University of Massachusetts, United States
Robinson P., Institute for Public Policy Research, United Kingdom
Samb M., Université Cheikh Anta Diop, Senegal
Sarfati H., Geneva, Switzerland
Sarries S. L., Universidad Pùblica de Navarra, Spain
Sibley T., International centre for Trade Union Rights, United Kingdom
Sydow J. and Wirth C., Free University of Berlin, Germany
Széll G., University of Osnabrück, Germany
Tar Ern Ser and Irene K.H. Chew, National University of Singapore, Singapore
Tholen J., University of Bremen, Germany
Thomas H., Schiphorst F., Moonilal R., Chhachhi A., Bose A.J.C:, Institute of Social Studies, The Netherlands
Thompson W.M.H., The University of British Columbia, Canada
Thys W., WCL, Belgium
Turner L., Cornell University, United States
Tyry A-J, ETUC, Belgium
Undy R., University of Oxford, United Kingdom
Verge P., Université Laval, Quebec, Canada
Webster E. and Adler G., University of the Witwatersrand, South Africa
Weeks J., University of Sussex, United Kingdom
Wells D.M., White J., Pupo N., McMaster University, Canada
Wheeler H.N., University of South Carolina, United States
Zhug Y., Victoria University, Australia

Endnote 1:
Lowe, G.S. 1998. "The future of work, implications for unions", in Industrial Relations, Vol. 53, No. 2, pp. 235-255.

Endnote 2:
See Geddes, M. 1998. Local partnership: A successful strategy for social cohesion. European Research Report, European Foundation for the Improvement of Working and Living Conditions, Dublin. The Report looks at local partnerships designed to build social cohesion and combat poverty, unemployment and exclusion in European member states. These arrangements pool the energy and resources of several actors, including trade unions.

Endnote 3:
Ibid, p. 56.

Endnote 4:
Ibid.

Updated by RS. Approved by AVJ. Last Updated 16 March 2004.