The puzzle of Australian union decline

Abstract

In the last 15 years, unionization rates in Australia dropped from more than 50% of the employed labor force to less than 40%-the lowest level of union organization since the 1930s. In contrast to western European trends, Australian unions declined while collective bargaining became more centralized and the Labor Party enjoyed unprecedented electoral success. Changes in the industrial or occupational structure account for little of the union decline. Analysis of social survey data suggests that narrowing differences in union ization across occupations and sectors accompany shrinking membership. Results also show that the gap in union organizing is growing between the young and middle-aged and workers in small and large firms. These develop ments are interpreted in the light of shifting institutional, work, and market conditions in the Australian economy.