Australian Bureau of Statistics
4102.0 - Australian Social Trends, 2008
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 23/07/2008
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TRADE UNION MEMBERS
Source: Trade Union Members, Australia, August 1986 (cat. no. 6325.0); Employee Earnings, Benefits and Trade Union Membership, Australia, August 2007
(cat. no. 6310.0).
Although unionisation rates fell across all age groups between 1986 and 2007, the pattern of generally higher rates of trade union membership among older employees and lower rates among younger employees was maintained. The biggest decrease in rates were seen in the younger age groups. Over this period, the trade union membership rate among employees aged 15-24 years fell from about one in three (36%) to one in ten (10%), and the rate among employees aged 25-34 fell from 48% to 15%.
The decline in unionisation rates is also observed when age cohorts are examined, suggesting that people may not be renewing their membership from year to year or when they change jobs. To some extent, this would be expected as older workers move to managerial and other non-unionised positions. 6
UNIONISATION RATES, BY AGE
Source: ABS 1986 Survey of Trade Union Members and ABS 2007 Survey of Employee Earnings, Benefits and Trade Union Membership.
In 1986, almost half (48%) of those employees born in the 1950s, and then aged 25-34 years, were union members. Ten years later the unionisation rate of this cohort, then aged 35-44 years, had fallen to 36%, and a further decade later it was 28% (26% in 2007). Similarly, among employees born in the 1960s and aged 15-24 years in 1986, 36% belonged to a union. Ten years later their unionisation rate had fallen to 30%, and the decline continued to 23% in 2006 (20% in 2007).
Falling unionisation rates are evident when the workforce is examined by sector, industry, occupation and type of employment. The workforce has continued to undergo compositional change, which has tended to increase the employment share of groups that generally have lower unionisation rates at the expense of groups that have higher rates.
The proportion of public sector employees who belonged to a trade union fell from 55% in 1997 to 41% in 2007, while the proportion in the private sector fell from 23% to 14%.
In addition, over this period the share of public sector employees of the total workforce fell from 22% to 19%.
Between 1997 and 2007, trade union membership rates fell across all industries. There were relatively steep declines in a number of industries including Finance and insurance (from 36% to 11%), Communication services (60% to 28%), Cultural and recreational services (24% to 14%), and Property and business services (from 10% to 5%). While the Education and Electricity, gas and water supply industries experienced falls in membership rates, they still maintained relatively high overall membership rates (40% and 34% respectively in 2007).
Over this period, the share of the total workforce employed in the more highly unionised Manufacturing industry fell (from 15% to 11%) while the share working in the less unionised Property and business services industry increased (from 10% to 12%).
EMPLOYEES AND UNIONISATION RATE: BY SELECTED INDUSTRY, SECTOR AND TYPE OF EMPLOYMENT
Trade union membership rates are higher in 'blue collar' occupation groups such as Intermediate production and transport workers and Tradespersons and related workers, and are lowest in the higher skilled 'white collar' occupations such as Managers and administrators and Advanced clerical and service workers. Unionisation rates for female employees were higher than males for Managers and administrators (15% and 9% respectively in 2007), and Professionals (30% and 17%).
As with other aspects of employment, falls in unionisation rates between 1997 and 2007 have been observed across all occupation groups. The largest declines in rates were among Intermediate production and transport workers (from 48% to 29%), Tradespersons and related workers (38% to 22%), and Labourers and related workers (33% to 20%).
UNIONISATION RATES, BY OCCUPATION
Source: Employee Earnings, Benefits and Trade Union Membership, Australia, August 2007 (cat. no. 6310.0).
The occupation distribution of employees has also changed between 1997 and 2007, with a trend away from the relatively higher unionised occupations of Labourers and related workers, Tradespersons and related workers, and Intermediate production and transport workers.
Type of employment
Unionisation rates also differed with employment conditions. Rates were higher for full-time employees (21% in 2007) than part-time employees (14%), and were also higher for those with paid leave entitlements (23% in 2007) than those without paid leave entitlements (7%). The unionisation rates in all these groups fell between 1997 and 2007, most notably among people without leave entitlements (from 14% to 7%).
Data sources and definitions
Data for this article are from the ABS survey of Employee Earnings, Benefits and Trade Union Membership (EEBTUM), conducted annually in August as a supplement to the Labour Force Survey (LFS).
A trade union is an organisation consisting predominantly of employees and is concerned with negotiating rates of pay and employment conditions for its members.
A trade union member is an employee with membership in a trade union related to the member's main job.
The trade union membership rate (also known as the unionisation rate) is the proportion of employees who are trade union members.
There is considerable variation in the trade union membership rates among OECD countries. In 2003, compared with the Australian unionisation rate of 23%, lower rates were observed in France (8%), Korea (11%) and the United States (12%); while much higher rates were observed in Denmark (70%) and Finland (74%). Countries with unionisation rates closer to Australia's included Japan (20%), The Netherlands (22%), New Zealand (22% in 2002) and Germany (23%). 6
There were some similarities in the pattern of trade union membership across countries. Rates were generally higher in the public than private sector, and higher for full-time than part-time employees. Unionisation rates in manufacturing were generally at least equal to or higher than the national average and rates for young workers (aged 16-24 years) were generally lower. Differences between men and women varied from country to country, with employed women more likely than employed men to be union members in Finland, Norway and Sweden. 7
While a small number of countries, including Belgium, Denmark, Finland and Korea, experienced an increase in unionisation rates over the period 1970 to 1990; the picture from 1990 to 2003 was one of declining rates in virtually all OECD countries. Steep declines were observed in Australia, New Zealand, Ireland and Germany. As in Australia, the changing composition of the workforce and legislative changes were associated with declining unionisation rates in other countries. 6
TRADE UNION MEMBERSHIP RATES, SELECTED COUNTRIES
Source: Visser, J 2006, 'Union membership statistics in 24 countries', Monthly Labour Review, January, pp. 38-49; Blanchflower, DG 2007, 'International Patterns of Union Membership', British Journal of Industrial Relations, vol. 45, no. 1, pp. 1-28.
States and territories
The downward trend in unionisation since 1986 was reflected in each state and territory. The unionisation rate in Tasmania, which has the highest proportion of trade union members, fell from 55% in 1986 to 24% in 2007. By comparison, in the ACT, which has the lowest unionisation rate, the proportion of union members fell from 42% to 15% over the same period.
UNIONISATION RATES: STATES AND TERRITORIES
Source: Trade Union Members, Australia, August 1986 (cat. no. 6325.0); Employee Earnings, Benefits and Trade Union Membership, Australia, August 2007 (cat. no. 6310.0).
1 Cole, K 2007, Workplace Relations in Australia, Pearson Education, Australia.
2 Peetz, D 2002 'Individual contracts, bargaining and union membership', Australian Bulletin of Labour, vol. 28, no. 1, pp. 39-52.
3 Australian Bureau of Statistics 2004 'Trade Union Membership', in Australian Labour Market Statistics, April 2004, cat. no. 6105.0, ABS, Canberra.
4 Australian Bureau of Statistics 2005, 'Industrial relations', Year Book Australia, ABS, Canberra.
5 Wooden, M, and Sloan, J 1998, Industrial relations reform and labour market outcomes: A comparison of Australia, New Zealand and the United Kingdom. Paper presented at the Reserve Bank of Australia 1998 conference: Unemployment and the Australian Labour Market, 9-10 June 1998.
6 Blanchflower, DG 2007, 'International Patterns of Union Membership', British Journal of Industrial Relations, vol. 45, no. 1, pp. 1-28.
7 Visser, J 2006, 'Union membership statistics in 24 countries', Monthly Labour Review, January, pp. 38-49.
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