The essay will seek to examine and conclude if Trade Unions, in a twentieth century, still play a pivotal role in the work place. I will consider a number of factors that have shaped employment law today and have somewhat changed the relationship between

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Introduction

The relevance that Trade Unions play in industrial relations is a question that requires an in depth analysis of their history, their aims and primary roles. The essay will seek to examine and conclude if Trade Unions, in a twentieth century, still play a pivotal role in the work place. I will consider a number of factors that have shaped employment law today and have somewhat changed the relationship between employee and trade unions. This includes an overarching principle of Individualisation of the employment contract, wide spread legislative reforms that have changed the scale of trade unions and employees, a move towards an educational system, and the diminishing use of Collective bargaining. Before I proceed with examining the extent that trade unions play in industrial relations I feel that a brief history of the trade union movement is required.

The United Kingdom has long been seen as the heartland of the modern trade union movement over the last century. The emergence of the modern trade union started in the nineteenth century with the beginning of the Industrial era. Alongside a new era came a laissez faire approach by Governments and a rise in capitalism; refusing to accept workers rights and placing more emphasis on productivity. As a result there was a heightened demand for workers to assert their rights and to ensure businesses accepted a level of responsibility in industrial relations. Over time this movement became known as the trade unions. During the 1980’s Trade Union membership was at its highest with thirteen million people belonging to a trade union. Over the next two decades the movement witnessed a general decline in membership resulting in only seven and a half million people belonging to a trade union in 2007. This trend furthered itself and in 2008 there was a further decline in membership by 0.6% . This apparent decline has been visible for the past thirty years. I shall now move onto describe why this decline has happened and to examine whether trade unions still are important in industrial relations.

                       One reason for this apparent decline in membership can be attributed to the changing nature of the employment contract. The nature of employment law has changed and the main focus is now on the individual rather than the trade union. This has lead to the gradual increase of individualisation of employment contract. This change has steadily been creeping upon industrial relations but one needs to draw a distinction between procedural individualisation and substantive individualisation. It is true to suggest that procedural individualisation has been present for the last two decades, however substantive individualisation is an emerging concept. Whereas procedural individualisation refers to the diminishing use of collective means for determining the terms and conditions, procedural individualisation is concerned with the difference between each individual employee for example the difference between person A and person B.

                      The changing nature can be best seen when one takes the primary aim of trade unions; that of collective bargaining. Collective bargaining is an example of procedural individualisation. In the past trade unions would use their power and agree with the employer the terms and conditions of all employees that were employed in a particular work place. Historically, collective agreements were not to be taken as legally binding, however the Industrial Relations Act 1971 created a presumption, albeit a rebuttable one that they were to be taken as binding in law.

                        However nowadays individuals have a greater say, and in many employment contracts terms and conditions are not covered by collective agreements. The graph above shows that in 2008 only 34% of contracts were governed by collective agreements.  Only one in five (18%) private sector employees and three in five public sectors employees contracts are now governed by a collective agreement. (The distinction between private and public sector workers is discussed later on). The use of the individual right to bargain has resulted therefore in a reduction for the need of collective bargaining and thus has reduced, if not diminished, one of the Trade Unions main roles, rendering them limited when determining workers terms in industrial relations.

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                         Another explanation for the decline in membership and the gradual decline in trade union importance is the introduction of wide spread legislative reform that has been introduced since the 1980’s in Employment law. Another primary role of the trade unions, historically was to ensure that employees were covered by the realm of the Law, on issues such as health and safety and pay conditions. In the nineteenth century there was a need to set up standards in the workforce.  However over time Employment Law has seen a ...

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