Wednesday 21 August 2013

Are Trade Unions still to powerful?

Are Trade Unions still to powerful?


Trade Unions are not nearly as powerful they used to be in the 60’s when they had the power to bring down government, however they still have the power to cause serious disruption.  A strike on the London tube for example costs the UK economy £50 million per day and causes disruption and frustration for millions.  And with no minimum turnout required a strike can take place with the consent of only a fraction of a Unions membership.  Due to the laws surrounding strike action the UK lost 250 thousand work days due to strike action in 2012, and that was the least since the year 2000.  In 2011 the UK lost an amazing 1.4 million working days due to strike action, this is hurting the UK economy.  In 2009 the UK lost more working days to strike action than the USA and Germany combined.

Practical solutions have been put forward to reduce strike action in the UK, the most obvious one is a turnout threshold that must be met for a strike to be legal.  Strikes last year by the Public and Commercial Services Union representing border guards went ahead even though the Strike ballot only got a 20% turnout and this mean only 11% of members voted in favour of strike action, this is hardly a mandate for strike action.  It is still important that Trade Unions can strike as this can be the only way for them to bring employers to the negotiating table, but I don’t think it is unreasonable to set a 50% minimum turnout threshold for a strike to be legal.  However Trade Union bosses would argue that elections don’t have a turnout threshold nor did the AV referendum so why should a strike ballot.  There is a big difference between an election and a strike ballot and that is that a strike can potentially cause havoc particularly if it is in key areas such as the Tube or an emergency service.  Therefore, the strike should have a proper mandate, and not just be supported by a small number of Union members who voted.  



Trade Unions receive tax payers money yet Unite have enough money to donate £12 million to the Labour party,  a Yougov poll found that 51% of people support a ban on tax payer funding of trade unions with 26% not supporting a ban.  While the amounts spent are small for example the Ministry of Justice spent £6 million in 08/09 on staff working on Union activities, trade Unions are still special interest groups receiving taxpayer funding.  Now I believe that Trade Unions serve an important purpose and they should receive tax payers money, however in return for this money strike action should not be legal unless a minimum turn out threshold is reached.  As I don’t believe it is fair that Unions which receive tax payer funding can call a strike just because their leader does not like something.  If Unions don’t want minimum turnout threshold for strike ballots then they should not receive tax payer funding particular because many Unions have a political agenda.  To conclude, while Unions can call a strike, at the whim of their leader Trade Unions are too powerful.  There should be a minimum turnout threshold for a strike ballot to return Trade unions to their roots of representing workers, the majority of a Unions membership should want to strike for a strike to go ahead, not the majority of a small minority who turn up to  vote.  This would take the power away from Union bosses and give it to Union members.  

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