Declining Union Density

Abstract

Union density has been declining since thefirst Australian Bureau of Statistics (ABS) survey of trade union members in 1976. Between 1976 and 1982, changes in the industry composition of employment actually benefited trade unions. Since around 1982, however, this structural change has disadvantaged unions, and this accounts for around half the decline in union density since then. Changes in average establishment size may also have affected union density. The propensity for employees to belong to a union has been steadily falling since 1976. The decline in the propensity to unionize has accelerated since 1986, as has the deleterious impact of structural change upon union density. Factors that may have had an influence upon the declining propensity to unionize could include unfavourable legislative environments, a shift in public sentiment against unions during the 1970s, adverse reactions to the two-tier wage system and, possibly, management strategies. There is no convincing evidence yet that declining real wages, or centralized wage fixing arrangements as such, are primarily responsible.