Service model
Encyclopedia
The service model generally describes an approach whereby labor unions aim to satisfy members' demands for resolving grievances and securing benefits through methods other than direct grassroots-oriented pressure on employers. It is often contrasted to the organising model
Organising model
The organising model, as the term refers to trade unions , is a broad conception of how those organisations should recruit, operate and advance the interests of their members...

, and to rank and file
Rank and file
In politics and labor unions the rank and file are the individual members of an organization, exclusive of its leadership. The phrase originated in the military, denoting the horizontal "ranks" and vertical "files" of individual foot-soldiers, exclusive of the noncommissioned officers....

 organisation.

Australian context

In the Australian context, this model was encouraged through a comprehensive mechanism of centralised wage fixing and an industrial arbitration system. This system was particularly reliant on closed shop
Closed shop
A closed shop is a form of union security agreement under which the employer agrees to hire union members only, and employees must remain members of the union at all times in order to remain employed....

s, and the ability of unions to obtain preference of employment for their members. In 1987 the ACTU Congress adopted a "Future Strategies" document. The aim of this document and the underlying strategy was to encourage union rationalisation and thereby larger, more efficient unions that were more able to "service" their members' needs. This was further endorsed by the "Organisation Of Resources And Services Of The Trade Union Movement Policy" adopted in the 1991 congress. Both of these strategies were aimed at improving the delivery of services to members, which was seen as necessary to halt membership declines during this period.

The period following the 1987 congress saw significant shifts in the Australian industrial relations landscape including:
  • an end to closed shop
    Closed shop
    A closed shop is a form of union security agreement under which the employer agrees to hire union members only, and employees must remain members of the union at all times in order to remain employed....

     arrangements that were sanctioned by legislation
  • prohibition of secondary boycotts
  • a move to decentralise the award system through enterprise based bargaining.

These changes made it increasingly difficult to retain union membership numbers and density by applying a purely servicing model.

Furthermore, the change that was brought about by the Workplace Relations Act 1996
Workplace Relations Act 1996
The Workplace Relations Act 1996 is an Australian law passed by the Howard Government after coming into power in 1996. It replaced the previous Labor Government's Industrial Relations Act 1988. It started operation on 1 January 1997 and provided for the continuation of the federal award system...

curtailed the power of the Australian Industrial Relations Commission
Australian Industrial Relations Commission
The Australian Industrial Relations Commission, or AIRC , was a tribunal with powers under the Workplace Relations Act 1996. It was the central institution of Australian labour law...

 to resolve disputes by arbitration. This meant that in many cases the system of industrial arbitration was no longer available to resolve disputes, particularly where what was sought by workers was an increase in wages and conditions in excess of a centrally-fixed, minimum wage
Minimum wage
A minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labour. Although minimum wage laws are in effect in a great many jurisdictions, there are differences of opinion about...

 "safety net". For the first time since federation industrial action was sanctioned by federal legislation in certain defined circumstances. This meant that the bargaining strength of the respective industrial parties became a primary determinant of the outcome, and their ability to organise became crucial.

At Congress 2000, the unions adopted the "21st Century Organising and Campaigning Policy" which effectively gave formal recognition to the growing need to focus on actively organising workers to encourage membership growth, or adopt an organising model
Organising model
The organising model, as the term refers to trade unions , is a broad conception of how those organisations should recruit, operate and advance the interests of their members...

. This change also reflected the need to change to succeed in a decentralised bargaining context. While there is considerable controversy amongst unions about what constitutes a servicing or organising model, most Australian union structures incorporate a combination of both strategies to varying degrees.

The distinction between servicing and organising is not unique to the Australian Union movement. The discussion between various models is also prominent in other countries such as the United States.

External links

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