Union Membership and Density Levels in Decline

By Sonia McKay

Trade union density rates, which in the 1970s increased in most developed industrial economies, are now declining, according to a recent analysis.

At the same time, union membership levels are particularly low among young workers, while a greater proportion of union members currently consist of retired workers. Meanwhile, the proportion of female union members has now surpassed that of male union members in a number of EU Member States.

The research concludes that several factors have contributed to a reduction in union recruitment and strength, including:

international competition with increasing globalisation;

rise of service sector employment;

slower growth rates combined with a decline in government employment through privatisation;

rates of long-term unemployment;

use of flexible employment contracts;

lower inflation in conjunction with tighter monetary policies.

However, labour market institutions, legal rules and politics all play a role. Indeed, the study highlights the connection between institutional factors and higher levels of union density. For example, in Belgium, Denmark, Finland and Sweden, union involvement in the administration and execution of unemployment insurance contributed to an increase in union density and membership rates from 1970 until 2003. Thus, the accepted presence of unions in the workplace, coordinated nationwide bargaining and consultation may also correlate positively with union density.

Working Lives Research Institute; London Metropolitan University

European Industrial Relations Observatory on-line (EIRO) 22 May 2006