When navigating the complex word of industrial relations there are instances where observers may see that a trade union has the upper hand in a dispute with an employer. The union may be able to organise its members leading them to a protest in the form of withdrawal of labour or other ways to disrupt the operations and the production of the employer.
The union may be able to get media attention and have media reporting about its dispute, leading to public support. It may also get the support of other organisations whilst other trade unions may be sympathetic of its demands. The build-up created and the way it is portrayed may suggest that the union is in a position of power over the employer.
In actual facts it is may not be the case. Using modern terms, the union may actually be the underdog, but so can be the employer.
Trade unions are generally created to balance power disparities between individual employees and employers. The imbalance between a single employee and their employer is well known and no employee can single-handedly manage to bring about improvements in the place of work in comparison to what a group of employees can bring about through their representative union. A strong membership base of a trade union is very important. Currently in Malta the rate of the number of unionised employees in relation to the total employee population is slightly over 30% - what is known as the membership density. This is the lowest figure in the past 50 years and it is on the decline.
The strength of a trade union depends on the number of employees who adhere with its cause and not only on its membership base. If we look at some European countries like France, the membership base of trade unions is very low with a membership density close to 10%. However, union members and non-members follow trade union directions in France leading to ongoing manifestations, mass protests and industrial actions.
Trade union activity in collective bargaining is another important measure which is indicative of the strength of trade unions. In Malta the number of employees covered by a collective agreement in relation to the workforce is estimated to be less than 50%. The collective bargaining coverage in France is over 95%. However, the absence of a collective agreement does not necessarily mean that collective bargaining is not taking place. There are a number of employers in Malta who recognise a particular trade union at the place of work and discuss matters with the union without engaging in negotiations towards a collective agreement. This may be on the rise.
Back to the power issue and considering that a trade union may have a high membership base, the support of the absolute majority of employees at a particular workplace, media support and the support of other organisations. In this scenario can the power between a trade union and an employer be balanced?
During a dispute, the trade union can disrupt operations and production leading to significant losses, whether financial or otherwise, which are incurred by an employer. The employer has an ultimate tool and may use it based on the particular employment and economic situation at the time. It can lock-out employees until they conform to its demands or withdraw theirs but it can also relocate. If the service or production requires skilled or professional employees that are scarce, the employer is quite powerless and has little option but to find a compromise with the trade union.
If on the other hand there is a supply of employees who can replace the protesting ones, the employees and the union are quite powerless. Thus the power imbalance may be based on factors which do not depend on the strength or otherwise of the trade union.
In my experience and studies of industrial relations, there is only one instant, lasting few minutes where the power between a trade union and an employer may be balanced - or at least there is the illusion that it is balanced. This occurs during the signing of a collective agreement. Collective bargaining from the process of negotiations, to the implementation of agreements is clearly an unbalanced process.
Marco Bonnici is President of the Malta Union of Teachers