Is there a Representation Gap? An examination of union density

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The Crisis and Precarious Work

Irish Economic Policy Conference

2014

Dr. Thomas Turner & Dr. Michelle

O’Sullivan,

University of Limerick

Outline

• Focus on

– Challenges for unions following crisis

• public & private sectors

• immigration

– Challenge for dispute resolution system following crisis

70

60

50

40

30

20

10

0

Union density 1925-2013

Employment Density

Employment Density

3

70

60

50

40

90

80

30

20

10

0

1990

Public and private sector union density

1995 2000 2002 2003 2006 2008

Public sector union density

Private sector union density

Trends in working conditions

All employees

Private sector

2007

Casual and part-time workers on live register

20,457

Trends in part-time work

2007

380,000

% employ labour force

Average weekly earnings

18%

2008 (Q1)

€704.3

642.5

Public sector 904.8

2013

81,382

2013(Q1)

454,000

25%

2013 (Q1)

696.6

628.3

913.4

% change

+300%

+19%

-1%

-2%

+1%

5

Employee experiences

Any period of unemployment and work seeking lasting 12 months or more?

Any period of unemployment and work seeking within last five years?

Living comfortably on income

European social surveys 2006 and 2012

(Irish results)

2006 2012

46% 60%

50%

48%

72%

Coping with income

Difficulty with income

Mean Satisfaction with your job

0 to 10)

Allowed to influence policy decisions

(range 0 to 10)

(range

Allowed to decide how work done

(range 0 to 10)

41%

11%

7.3

4.3

6.1

22%

46%

32%

7.3

3.9

5.4

6

Crisis & Unions in Public Sector

• Union presence still strong but likely difficulty in maintaining density levels

– Pay cuts & deteriorating conditions

– Voluntary redundancies amongst older age groups

– Lack of solidarity & consensus amongst unions

Challenges in Private sector

• Difficulty in accessing & protecting workers

• Changing profile of union members (about

20% are unionised)

• Fragility of wage setting for precarious workers

• Tensions regarding migrant workers

Low pay

2/3 medium earnings=€10.86

Less than €8.23

Low pay

Private sector

10%

%

Private sector

2.5%

JLC: €8.23-€9.68

€9.69 – €10.86

Low pay total

52%

38%

100%

13%

9.5%

25%

Wage setting mechanisms

• Threats to JLCs & REAs

• Importance of State support – Labour Party

• Costs – loss of protection, more bureaucratic system

• Benefits – some JLCs moved to REA system

Hourly Earnings By Nationality & Unionisation –

Private Sector

Member of a trade union

Irish nationals

Non-Irish nationals

Original EU 14

EU accession

Others

Low Pay

(2/3 of median earnings)

Yes No

%

16

25

15

36

20

%

27

37

27

47

32

%

51

31

41

24

33

Above median hourly earnings

Yes No

%

40

25

38

14

30

Attitudes to allowing immigrants access in EU countries

Ireland

Ranked out of 12 countries

Allow in the same ethnic race as

Irish nationals

(Scored 4=allow many to live here to

1=Allow none)

2006 2010 Change

2006-

2010

2.94

3

2.64

8

-10%

Allow a different ethnic race from

Irish nationals

(Scored 4=allow many to live here to

1=Allow none)

2006 2010 Change

2006-

2010

2.78

2

2.49

7

-10%

Ireland

Ranked out of 12 countries

Immigration – good for the economy

(Scored 10=extremely good to

0=extremely bad)

6.05 4.43 -27%

Immigrants make it better place to live

(Scored 10=extremely good to 0=extremely bad)

5.72 5.09 -11%

1 11 3 6

Proportion agreeing with allowing in many or no immigrants from the same or different ethnic race

Ireland

Average for

12 countries

Allow many from same ethnic race as majority to live here

2002

%

2010

%

23

15

16

19

Ireland

Average for

12 countries

Allow many from different ethnic race as majority to live here

2002 2010

12

10

12

12

Allow none from same ethnic race as majority to

2002

% live here**

2010

4

%

14

6 8

Allow none from different ethnic race as majority to live here

2002

6

11

2010

17

12

13

Crisis & Dispute Resolution

• Crisis led to significant increases in referrals to state bodies

• Such increases a symptom of industrial relations & legal systems

Referrals to State bodies

18000

16000

14000

12000

10000

8000

6000

4000

2000

0

Rights Commissioner EAT

2006

2010

Sub-systems

Regulated;

Restrictions to collectivising

Unionised subsystem

Nonunionised subsystem

Disorganised;

Reliance on law

Contrast: The Swedish Employment Rights System

• Collectivist orientation –no state agencies except LC

• Cases referred to the Labour Court: averaging 400 to 450

• Union involvement in the dispute resolution process is mandated through legislation

• Disputes handled directly between union and employer

• Minimum intervention of the law or third parties

• In many instances, the ‘priority right of interpretation’ is assigned to the ‘established union’

Conclusion

• Crisis & work

– Worsening conditions in public sector and private sector

– Employees in precarious jobs further weakened by crisis

• Immigration

– Significant increase in negative attitudes between 2006 and 2010

– the decline in positive attitudes to immigrants highest in Greece and Ireland

• Dispute resolution

– Crisis accelerated trends in referrals to state bodies

– Underlying cause: separation of collective and individual disputes in law; weak role afforded to unions in dispute resolution

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