Service model

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The service model (or servicing model) generally describes an approach whereby labour 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, and to rank and file organization.

Australia

In Australia, this model was encouraged through a comprehensive mechanism of centralised wage fixing and an industrial arbitration system. This system was particularly reliant on closed shops, and the ability of unions to obtain preference of employment for their members. In 1987 the Australian Council of Trade Unions (ACTU) 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.

A pre-entry 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. This is different from a post-entry closed shop, which is an agreement requiring all employees to join the union if they are not already members. In a union shop, the union must accept as a member any person hired by the employer.

Australian Council of Trade Unions

The Australian Council of Trade Unions (ACTU) is the largest peak body representing workers in Australia. It is a national trade union centre of 46 affiliated unions and eight trades and labour councils. The ACTU is a member of the International Trade Union Confederation.

The period following the 1987 congress saw significant shifts in the Australian industrial relations landscape including:

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 curtailed the power of the Australian Industrial Relations Commission to resolve disputes by arbitration. This meant that in many cases the Australian Arbitration system 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 "safety net". For the first time since Australian 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.

Workplace Relations Act 1996 Act of the Parliament of Australia, no longer in force, registered as C2004A05064

The Workplace Relations Act 1996 was a law regarding workplace conditions and rights passed by the Howard Government after it came into power in 1996. It replaced the previous Labor Government's Industrial Relations Act 1988, and commenced operation on 1 January 1997.

The Australian Industrial Relations Commission (AIRC), known from 1956 to 1973 as the Commonwealth Conciliation and Arbitration Commission and from 1973 to 1988 as the Australian Conciliation and Arbitration Commission, was a tribunal with powers under the Workplace Relations Act 1996 that existed from 1956 until 2010. It was the central institution of Australian labour law. The AIRC replaced a previous system of industrial courts, which broadly speaking, was engaged in the same functions, but with superior independence and powers.

Minimum wage lowest wage which can be paid legally in a state for working

A minimum wage is the lowest remuneration that employers can legally pay their workers—the price floor below which workers may not sell their labor. Most countries had introduced minimum wage legislation by the end of the 20th century.

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. 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.

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