Union Mergers in Australia and Germany : a Comparative Study From an Organisation Theory Perspective.

Abstract

Waves of union mergers took place in Australia in the early 1990s, and in Germany major restructuring is underway today. The countries are dissimilar cases regarding their industrial relations systems and trade union structure. However, similar environmental pressures induced the mergers and similar internal political processes determined their course. The analysis is exploratory and uses key concepts of two organisation theories to gain an understanding of the merger processes:An ecological theory of organisations is used to explain the occurrence of mergers as a minimal adaptation of unions to environmental changes transformational shields and inertial tendencies inhibit change, and when it does take place, it pertains only to peripheral, or structural, features of the organisation, rather than questioning its purpose and activities.A political theory of power in organisations unravels the struggles that take place at various levels in the course of merger negotiations between groups within a union, between possible merger partners, between merger partners and other unions, between peak associations and affiliates, and between the government, political parties and the trade union movement. Interest groups and coalitions bargain over merger terms. Influence and leadership, as well as dependence relationships and commitment processes play an important role.A synthesis of the theories is found in the need to control resources in order to survive: Mergers occur because unions are losing control of resources vis-à-vis the other actors in the industrial relations arena; their course is determined by the struggle for resource control among the interest groups within the union movement.Not all mergers are successful. It is uncertain whether negotiated structures can be retained in their intended form, whether goals formulated prior to the merger are achieved, and whether merged unions have a greater capacity to engage in new activities.The thesis concludes with an overview of merger activity in other countries and of structural alternatives available to unions seeking organisational reform.