Public concern about the precarious work conditions that sections of the workforce are subjected to, and resentment about the insecurity of the gig economy, often rise to the surface. So why is it that the proportion of workers that are unionised is falling?
The trend of falling union membership is not just a local phenomenon. Statistics published by Eurofund in its Annual Review of Working Life in 2018 indicates that 1,562 workers joined unions last year.
However, the number of new workers joining the workforce was 13,000. Today only 38 per cent of workers are unionised – almost half the figure that was often recorded in the 1970s.
Trade union leaders do not seem to be unduly worried by this phenomenon even if they do admit that they need to change to remain relevant in the 21st century. A Union Ħaddiema Magħqudin spokesman argues that the situation in Malta is better than in other European countries, adding that “trade unions need to adapt to labour market exigencies”.
Josef Bugeja, general secretary of the General Workers’ Union, while still not showing signs of concern, insists that “the biggest mistake the trade union movement could make is to be complacent”.
The long-term reasons for union decline are varied. Sweeping industrial change, shifts in social attitudes and the rise of outsourcing and offshoring have had an intense effect on union membership. However, there are often other reasons within the trade union movement that have dented their credibility with workers.
Rather than focus on innovation in the services they offer, local trade unions have often engaged in inter-union turf wars rather than in the more productive task of attracting new recruits. Another fundamental mistake, especially when economic conditions are less favourable, is to defend the privileges of existing members rather than encourage employers to recruit new workers with working conditions that reflect today’s changing workplace.
Trade unions should not rely on the government to solve their membership challenges by legislating on the obligation of all workers to join a trade union or pay a fee for opting not to do so.
While it is in the government’s interest to ensure that workers are not exploited, this should not be done through legislative over-reach.
The biggest threat that trade unions face is not that of technology or trade but the impending demographic crunch. Baby boomers are fast joining the retired section of the population as they reach pensionable age. Younger workers need to replace them if the trade unions stop the negative trend in membership.
To do this, they need to innovate and not rely on the government to help them maintain the status quo. They need to innovate in the range and quality of services they offer to their members. They have to do this with low-cost tactics that are digitally savvy and appealing to the younger generations. To command support they need to offer effective services in the workplace, rather than to rest on appeals to broader causes.
The future of organised labour is at risk, and this is not good for a society that values the role of workers. The trade union movement will be wrong if it believes that doing more of the same will help it to convince workers to join its ranks.
Trade unions must innovate today or shrink tomorrow.