For most of the 20th century, unions have had a most important place in the working life of many employees. From 1914 to 1990, 2 out of 5 workers were members of a union. At the turn of the new century new developments were brought about, like globalization, changes in workforce demographics and rapid technological advancements. Changes in the political and economical spheres have also contributed in the decline of the Trade Unions. These developments have had a strong impact on the structure of the labour market and industrial relations. As a result Trade Unions no more have the same importance in organizations like it had before.
Globalisation has brought with itself a lot of pressure for the local industries to become globally competitive. As a result enterprises have been forced to adopt greater flexibility – functional and numerical - in terms of labour utilization.
In terms of functional flexibility some examples are broadening of job designs, enlarging the scope of individual skills amongst others.
In terms of numerical flexibility, some examples are changing working hours, hiring of causal, part time, temporary and contract workers.
These job flexibilities have both the advantages and disadvantages, but people are so much in need of work nowadays that even if the disadvantages are higher than the advantages they would not want to go against the company in fear of losing their jobs. This shows that there has been a great decline in the solidarity that existed among all employees long ago. Infact this is what really made the Trade Unions be so strong. Workers now tend to be better educated, career minded and individualistic. As a result they are less interested in the problems that their friends or colleagues are going through as the “I” is now more appealing and profitable than the “WE”.
With the intense competition that is taking place, labour is becoming a commodity and not a partner towards