Traditionally, trade unions thrive in the public sectors as a result of power resources through: internal strength through membership size; political ties and partnership alliance with other national and international trade unions. The power resources did not only strengthen national collective bargaining, but also gave trade unions an advantage over changes in the workplace, as they can sometimes oppose effectively organisational changes. One major power source came from political bidding- government intervention, which is said to weaken managerial decisions and performance in the state enterprises (Ferner and Colling 1991; Pitelis and Clark ). Most governments in a bid to increase performance, reduce political interference, promote efficiency and introduce capital in the sectors deployed the neoliberal economic policies, which led to the restructuring and privatisation of most state enterprises. (Ferner and Colling 1991; Wever and Tuner 1995; Locke 1995; Katz and Darbishire 2000).
In the United Kingdom and other countries were governments have introduced the privatisation concept, the approached to work has evolved from Taylorism towards a more flexible and specialist approach together with other non-standards form of work such as subcontracting. Troy (1990) and Purcell (1995) argue that this strategy has put tremendous pressure on trade unions as the introduction of private participation through privatisation is associated decline in unionism. The initial reaction at this point would be to agree completely with Troy (1990) and Purcell (1995), in their earlier prediction of a gloomy future for trade unions as public enterprises were increasing moving to private ownership. Their debate further aligns with literatures on trade unions responses during workplace changes (Goldner 1970; Kochan and Cappelli 1982; Katz 1988; Kelly 1996; Bacon et al 1996), which suggests that trade unions maintain their ideological approach which is either to co-operate or resist management’s strategies to workplace changes. This idea aligns with the convergence theory which asserts that the change from public to private ownership will result in similar experiences in trade unions involvement in the workplace-cooperative or militancy. According to this perspective, following privatisation, competitive pressures will drive employers to engage more with employees rather than labour, implement more flexible work arrangement. Bacon et al (1996) created an empirical stance of the convergence perspective as trade unions in the United Kingdom and German steel industry deploy a traditional engagement strategy during the restructuring of the industry. While both case studies adopted a traditional approach which was cooperative/militancy in the formal and co-determination in the later, Bacon et al went on to suggest for the UK steel industry needs to consider certain strategy such as an integrative partnership approach that will add value, as deployed by the German trade unions.
Such traditional approach however, creates a dichotomy which is rather narrow as they fail to consider other factors evident in the environment which may influence trade unions and managerial approach during the restructuring and privatisation process. This is important especially due to the contrast to the convergence model, as studies have documented variations in the trade union approach in privatised firms (Tuman 1999; Xelhuantzi-Lopez 1997; Katz and Darbishire 2000; Arrowsmith 2003). The contrast however supports the debate that trade unions approach to workplace restructuring and privatisation is not a straight forward approach as instigated by earlier debates (Goldner 1970; Kochan and Cappelli 1982; Bacon et al 1996; Kelly 1996) but are embedded within a complex framework (Katz et al 2003; Pulignano and Stewart 2013; Meardi et al 2009; Levesque and Murray 2005). The complexity of the framework as Martinez Lucio and Stuart (2004) and Mackenzie (2009) suggests entails an understanding of the political and economic contexts which informs trade unions strategies during the restructuring and privatisation process, as the decision for a cooperative or militant position does not exist solely on the ideological stance of trade unions.
Drawing from these initial debates, the study will examine the variations in trade unions strategy during reforms to assert whether they are based solely on trade unions approach or whether unionism is influenced by the intersectionality of factors. For the purpose of the study, the restructuring and privatisation process will be referred to as reforms. The study is organised in three sections. The first section discusses the debates which align trade unions approach into: cooperative or militancy approach to one which asserts for a reconceptualization of trade unions involvement strategy during reforms. The second section involves engaging in debates which supports that the reconceptualization of unionism involves an integration of institutional effects. Moving on to the third section which is the concluding part, the study posit for the need for future research in other contexts to provide a encompassing debate in the literature.
2.0 Main body
2.1 Local Unions Strategy during Restructuring and Privatisation (check the heading)
The reforms in state enterprises together with the decentralisation of collective bargaining have introduced pressures on trade unions engagement in the workplace (Bacon et al 1996; Frost 2001). The changes introduced by the reforms have not only involved the transfer to new ownership but also the growth in non-standard employment arrangement such as subcontracting resulting in debates on the appropriate strategy for trade union survival. The traditional conceptualism for trade union survival in the face of the changes resonates from the ideological stance which creates a dichotomy-cooperative or militancy, as strategies that trade unions will deploy for survival. To strengthen this perspective, an earlier study of Bacon et al (1996), assessed trade unions approach during the second wave of restructuring in the United Kingdom and German steel industry. They assert that trade union in the UK as against the German trade unions which engaged in work reorganisation, restricted the response strategy within their ideological stance as one of the steel unions – Iron and Steel Trades Confederation, and had an ideology for moderation which was a determining factor in the trade unions involvement with the employer. Nevertheless, while Bacon et al acknowledge the ideological stance of unions, and the institutional context in both case study context such as the political and economic agenda of the conservative government in the UK and the codetermination policy in Germany, they failed to discuss in impact such institutional context may have on the involvement strategy deployed by trade unions .
In contrast, Levesque and Murray (2005), Frost (2001) and Mackenzie (2009) studies sort ways of reconceptualising trade unions strategy especially as variations began to occur across countries. The initial focus at this point is to move away from the convergence perspective by asking the question, ‘are trade unions involvement approach easily predetermined’? In response, Levesque and Murray (2005) and Frost (2001) sort a move away from the debates that places trade unions as mere passengers, active participants or opportunist to change, to one with a more vibrant position. This involves an assessment of other contributing factors to trade unionism. On this note, Levesque and Murray (2005) went on to assert that irrespective of other external factors, the capacity of trade unions to maintain involvement during reforms is based on the capacity of unions to mobilize power resources. Frost (2001) incorporates a more extensive approach in the reconceptualization of trade union strategy during reforms; which differ extensively from Levesque and Murray (2005) power resources, as Frost provides a more encompassing approach which covers the influence of other external factors.
From the internal structure of trade unions, Levesque and Murray (2005) posit that the involvement strategy relies on unions ability to mobilize the internal and external resources which includes: internal solidarity , which refers to the ability of local unions to coordinate their collectivism among workers in the workplace; external solidarity, which has to do with horizontal and vertical alliance with other unions and social groups and the strategic approach, which refers to trade unions ability to coordinate and put forward their agenda. The result of their empirical test on 98 cases supports the propositions that the presence of internal solidarity will invariably strengthen the external and strategic capacity. The debates invariable focus on how trade unions respond rather than steps deployed by trade unions during the changes. It is important to assess how trade unions evaluate the constraints faced, how they evaluate and implement any strategy chosen and ways to make communicate their strategy for a more profitable relation with management.
Frost (2001) is a more detailed analysis as the study incorporates factors that influence the response strategy and how they informs not only how trade unions engage during the reform process, but also how each approach led to variations in outcomes even within the same industrial relations. In an the empirical study which assessed three trade union responses in North America, Frost termed the engagement approaches deployed by trade unions as the ‘interventionist’ and ‘pragmatic’ approach. The interventionist approach exemplified by two trade unions, was not based on the ideological stance or industry settings, but involves an initial involvement of trade unions prior to the restructuring process. A contrast to this approach is the pragmatic approach deployed by the third trade union, which engaged with management after the restructuring strategy was organised. An in-depth analysis of the approach deployed all three trade unions in Frost’s study points to the need for a reconsideration of prior union-management relations prior to the reforms, what factors-economic and political, drives the reforms, and the initial mode of reform approach as discussed by Tuman (2007).
On this note, Mackenzie’s (2009) posit for the need to incorporate the broader political, economic framework when assessing trade unions strategies in the face of uncertainties owning to reforms in the state enterprises. The study notes that in a bid to survival due to the subcontracting of work, trade unions in the Irish telecommunication firm Eircom, engaged with both management and local partnership groups to ensure that work is allocated to union friendly firms. In terms of involvement with management, rather than adopt a passive or restrictive approach, they deployed a more engaging approach such as developing a working scheme were employees got a three year contract on Eircom terms. Mackenzie (2009) asserts that this approach did provide a more strategic benefits for all parties involved: suppliers, employers, employees and unions in terms of membership even amongst non-standard workers. This analysis did not only support the move from a simplified dichotomy as indicated by Bacon et al (1996) to a more elaborate position, but elaborated on strategies deployed as trade unions reconceptualise their involvement strategy.
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The use of external labour market such as the non-standard forms of employment as discussed by Mackenzie (2009), through subcontracting and other contingent employment arrangements, calls for what Fairbrother (1994) refer to as trade union renewal. In the eminent debate that reforms creates pressures on the traditional form of unionism by threatening continued engagement, Fairbrother suggests that the constraints faced could be an opportunity for union renewal especially with the market changes. The result of the empirical case studies from the telecommunication, gas and water in the United Kingdom, supports their propositions that unions should take the opportunity offered by the reform process to lay foundations for renewal. The unions in two of the sectors in Fairbrother’s study with the exception of the Gas industry experienced decentralisation of collective bargaining with local unions being at the mercy of employers. While Fairbrother promoted the need for trade unions renewal policies owning to reforms, limited emphasis was placed on the strategy.
Frost (2001) and Mackenzie (2009) gave a more detailed approach in terms of the involvement strategy as trade unions sort approaches for renewal. In an attempt to renew trade unions strategy towards involvement in the face of restructuring, the trade unions in the Irish telecommunication industry deployed a strategic alliance with supplier organisations which aligns with Leveseque and Murray (2005) alternative sources for trade unions power. Nevertheless, despite the need for trade union renewal as government continue to adopt reform measures, there is need to extend the debate beyond the union structure by incorporating the external institutional frameworks. The incorporation of the institutional frameworks is one way of explaining the divergences in terms of trade unions involvement strategy across countries. The increasing change and the debate over the development of the appropriate strategies for addressing the challenges faced by unions is not done in exclusion of the institutional framework and the influence of the pressures which the exact. The literature (Fairbrother 1994; Tuman 2007; Mackenzie 2009; Pulignano and Stewart 2013) have stressed that the drive towards restructuring and privatisation is triggered by several institutions which may also impact on the strategic approach deployed by unions during such change.
Institutional context and Trade Unions involvement strategy
The attempt to understand trade union involvement strategy during the reforms is due to variations in industrial relations across countries. Evidence suggests that the combination of various institutional frameworks such as: legislative; economic; socio-political and firm-level structures influence the strategic approach deployed by trade unions. Pulignano and Stewart (2013) and Mackenzie (2009) built on this to assert that trade union involvement strategy is influenced by institutional pressures which invariably impact their strategic choice in the workplace. To a degree, Leveseque and Murray (2005) were able to illustrate how the strategic choice-internal solidarity and stronger articulation with other unions, deployed by unions influence their engagement at the firm level in Mexico and Canada. Nonetheless, Levesque and Murray argue, that regardless of the institutional frameworks, restructuring and privatisation strategy will lead to similar outcomes for trade unions, which is to either exclude or cooperate with management during the changes. Such debate which excludes institutional contexts seems to suggest that trade unions and managerial approaches operate in a vacuum with no institutional interference. The reference to trade union power sources and the applicability during firm restructuring and privatisation as they note two types of workplace relationships: contested unilateralism and micro-corporation , however supports the fact that other institutional influence external to trade unions also apply.
Based on the firm-level approach, Pulignano and Stewart (2013) assessment of trade unions strategy towards firm-level restructuring suggests that a combination of structural and socio-political firm-level conditions will invariable influence the specific strategy deployed by the trade unions. The analysis of six case studies within three nationalities: Netherlands; Ireland and Italy went on to suggest that diversity in trade unions involvement strategies during restructuring is based on both the firms structural characteristics such as: workforce composition; company financial vitality and the management-union relationships. The idea of management and union relationships was also stressed in Mackenzie (2009) and Frost (2001) were trade unions were able to diverse interventionist approach and other forms of involvement strategy in the case of unions in the Irish telecommunication industry to remain relevant in the firms.
Nonetheless, it will be over ambitious to assume that trade unions strategy and the alignment within an institutional context will result in a definite position. Therefore while a definite prediction may not be eminent within union strategy, Pulignano and Stewart (2013) posit for an in-depth examination of the firm-level structures and how these conditions influence the trade union approach. This in-depth examination of the other structures may arise from management willingness to work with unions (Mackenzie 2009); availability of financial resources to consider other forms of retraining (Frost) or the revaluation of the engagement strategy (Fairbrother 1994). The diversity can also arise from Tuman (2007) debate regarding variations in the initial reform strategy. This entails recognition of the policy structure which led to the reforms. In the study of variations in trade union involvement outcome in Argentina and Mexico, Tuman (2007) identified two patterns of reforms: negotiated and imposed. The negotiated patterns are when government make certain negotiations with trade unions prior to the reform process to ensure that significant concessions are attributed to workers. The contrast is the imposed reform strategy where there is an absence of negotiations. The approach deployed informed the institutional context in terms of regulation, legal and employer strategy deployed in each context. The implication arising from this research is the importance of the policy foundation which drives the reform process and the effect has on the process.
All seven papers make strong contribution towards the trade unions approach and the factors impact of the involvement strategy deployed. The significant point to note which takes us back to the initial question in this study is, what informs unionism? The papers starting from the earliest (Bacon et al 1996) served as transition as the debate on trade unions involvement moved from the ideological stance which aligns with the convergence perspective to a more dynamic approach which incorporates the internal structure of trade unions, firm-level and the external institutions. The most recent studies Tuman (2007), Mackenzie (2009) and Pulignano and Stewart (2013) provides a more detailed analysis in terms of the influence of economic and political pressures which invariably influence strategic choice trade unions by enabling or restricting the options available during reforms.
The interesting dimension which Tuman (2007) introduced and which should be engaged in future studies is the assessment of the policy structure prior to the reform process. Therefore, instead of the analysis of trade union involvement strategy based solely on institutional effect, comparative studies could be initiated to assert if the effect on trade unions involvement post- reforms are either converging/diverging with reference to both the institutional context, drives for reforms or the policy structure pre-reforms.
Conclusion
The literature provides evidence to support the involvement strategy deployed by trade unions during reforms. Starting from the earliest study from the literature (Bacon et al 1996) which aligns with the dichotomy of trade union strategy into co-operative or militancy approach, other studies provided an in-depth analysis on institutional contexts that also influence trade union response. Although other literatures supports the need to evaluate the institutional contexts which is the debate expressed in this essay, there are divergences that apply even in regions within a national context. The analysis in the studies however possess the need to further studies which incorporates large case studies and peculiarities that arise especially in countries with regional differences, and cases of foreign direct investment which involves multinationals. This is important as it creates a dynamic perspective into trade unions strategy during reforms.