review essay The Ebb Tide of Trade Unions

Tom Bramble’s stands in the way of understanding the decline of trade unions, explains Michael Warby

Trade Unionism in : A History from Flood to Ebb Tide by Tom Bramble

Cambridge University Press, 2008 $49.95, 314pp ISBN 9780521716123

s he says right upfront, Tom Bramble’s case of 1969, when union official Clarrie O’Shea was Trade Unionism in Australia: A History from briefly gaoled for breach of said provisions (his fine Flood to Ebb Tide is a Marxist analysis of was paid anonymously) and the rather stage-managed the history of trade unionism in Australia union protests against WorkChoices in 2007. Afrom World War II to the election of the Rudd Labor Bramble sees the former as genuine union militancy government. driving politicians to respond—the beginning of Apart from being clearly written (not always a the high point of union effectiveness; indeed, from feature of Marxist writings) the book is very much the start to the end of the book it is his template of full of facts. It has considerable value simply in how union activism should be done. For Bramble, its assembling of relevant statistics and presenting strikes are a positive indicator—particularly given them clearly. In contemporary academe, Marxist the evidence he cites for such action encouraging scholars can be a welcome relief from the somewhat union recruitment. fact-challenged products of more recent intellectual He sees the 2007 WorkChoices campaign as being trends. Bramble is an example of ‘there are facts and carefully managed to help one lot of politicians they matter’ Marxist scholarship. When the blurb against another, which left the union movement talks of Bramble’s ‘compelling rigour,’ this may be in the weakest position it has been—both within what it is alluding to. It is also a useful corrective to those who fail to think about the downsides—particularly for those Michael Warby has a wide range of who have to suffer under it—of management experience in public policy. He has been arrogance. That, over the long run, employers tend to a union workplace delegate, a board get the unions and workplace problems they deserve member of the H R Nicholls Society, and comes across quite clearly. is a principal of a business that puts on Bramble starts off with an amusing contrast between union militancy over the destruction of the Medieval and Ancient days for schools. penal provisions of arbitration law in the O’Shea

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the ALP and more broadly—in the entire post-war Union-based challenge to Polish (and indirectly period. He notes how limited a roll-back of the Soviet) Communism—reduced ideological differences Howard Government’s WorkChoices the Rudd within the West, at least on economic issues, and government is committed to. To Bramble, the history moved political debate into managing capitalism. of Australian unionism is one of achieving a peak (After surging from about 1940 onwards, use of of militant effectiveness in the late 1960s and early the terms ‘Marxist’ and ‘Marxism’ in the JSTOR 1970s— that peak coming to a halt in the economic academic journal database peaked in 1988, then went crisis of the mid-1970s, a period of marking time into continuing sharp decline.) while resisting the Fraser government, and then a long Bramble’s Marxism both drives, and seriously decline from the election of the Hawke government limits, his analysis: the facts are subordinated to onwards. his theoretical framework. Since, under the labour theory of value, the only human thing or action that The limits of Marxist analysis contributes to exchange value is labour, then wages All events are interpreted in terms of a struggle cannot be ‘too high’ if any profit share exists (Bramble between working class and capitalist ruling class, explicitly denigrates connecting unemployment ‘class’ being treated as an unproblematic concept. to wage levels: to the extent of endorsing shorter Electoral outcomes are interpreted relentlessly hours on full pay to ‘share the work around,’ there within that framework. So the near defeat of the is no notion that wages might be a price), all profit Howard government in 1998 is analysed as following is exploitation. So there is no legitimate role for on from the failure to break the MUA in the business, so business and its supporters can never waterfront dispute. The GST gets no mention, and have legitimate motives, cooperation with business the social reforms enacted by Federal governments— is always betrayal, there can be no commonality or wage rises generally—are talked about in terms of with exploiters and there is no legitimate sense in concessions by the capitalist class. which we are all in a common economy and society The rise of the Green movement fails to get any together. Hence any constraining of union militancy coverage (except in getting the Left vote up to due to concerns for democracy, the rule of law, or more than 50 percent in 2007). Yet, even in terms unemployment are betrayals. of Bramble’s own concerns, this is foolish analysis. There are also no returns to trade between labour Bramble laments the decline of militant networks and capital—it is all a zero-sum game. So the question within the union movement. That activists who, of complexity costs or waste of resources doesn’t in previous times, might have gone into the union arise—nor do issues of loss, bankruptcy or managing movement now flow into advocacy NGOs— risk figure in his analysis (that is all subsumed into rise particularly of a ‘green’ variety—surely has much to and falls in the profit-share of GDP or rates of profit). do with said decline of militant networks. Innovation or commercial creativity figures still less This pattern of leaving highly relevant things out (there is merely productivity) nor does the question runs through the book—to a sometimes laughable of whether capital accumulation—by making labour extent. So Bramble cites General Pinochet’s violent more scarce compared to capital—might prove to be 1973 overthrow of the Allende government in Chile an investment in higher returns to labour. as being in people’s minds as they responded to what Indeed, there are no problems of ownership Bramble calls the ‘Kerr Coup’ in dismissing the (particularly not providing any guarantees against Whitlam government. Yet that the Communist Party income variability). Nor are there any problems of of Australia dissolved in 1991 is noted without any information flows or incentives other than those that reference to what else dissolved that year. affect levels and effectiveness of militancy and union Again, in terms of Bramble’s own concerns, organisation. This is ‘economic’ analysis with most Michael Warby has a wide range of ignoring the global collapse of the socialist alternative of the actual economics left out. experience in public policy. He has been to capitalism is foolish analysis. Surely it is precisely Bramble is in the rich tradition of academics a union workplace delegate, a board that in 1969–74, there was still a sense of as who live in capitalist societies, study and critique a viable alternative to capitalism that mattered in both member of the H R Nicholls Society, and (even obsess about) capitalism but, in certain crucial directing and firing up militant workplace activity. respects, do not understand it. is a principal of a business that puts on Socialism-as-genuine-alternative’s accelerating Bramble lauds the advance of women in the Medieval and Ancient days for schools. collapse—starting with China’s dramatic economic workplace but glides over union resistance to reforms from 1979 on and the 1980 Solidarity the same—the ACTU’s abandonment of the

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family wage concept in 1977 is seen as worthy but smaller states: the diseconomies of scale were somehow comes without any attached history worth increased and any economies of scale largely avoided. mentioning. Bramble cites oppression of migrant That something more might be going on is, however, workers with little sense of why Australia so attracts suggested by the fact that union coverage fell in migrants. And he does not bring up the issue of many developed economies and that the only whether the combination of mass migration and other developed economy where it fell even more women entering the workforce might put downward precipitously was New Zealand. pressure on wages. (The push for equal pay may help Bramble sees the last as being a result of New Zealand obscure the larger effect.) Workforce changes that also being even more avid in adopting ‘neoliberal’ economic increased the difficulty of appealing to a common reforms. New Zealand was also the one other country union culture: the more diverse the background of workers due to varying cultural backgrounds and that had an arbitration system analogous to Australia’s. life experiences, the harder solidarity politics tends This meant that, like Australia, NZ unions had to become. developed as managers of legal complexity tied into a comparatively rigid structure of workplace regulations and legal privileges. The union movement was tied to a The worldwide move towards economic complex regulatory structure whose liberalisation was a response to the failure of socialism, the failure of highly centralised paths of implicit and explicit costs were increasing. development, and to stagflation. In the developed world, both the movement of women into the workforce and mass migration placed downward Not all the deleterious exclusions flow from pressure on wages, lessening the willingness to pay Bramble’s theoretical framework, his polemical for extra taxes, while increasing demand for jobs purposes also have an effect. So he includes useful and economic and social infrastructure. Economic graphs of average earnings and average award rates efficiency acquired an increasing public policy for the periods of the Hawke and the Keating premium, given the increase in welfare expenditures governments. The period of the Howard government already underway—particularly income support, a does not score any such graph, just a passing mention form of expenditure that, unlike previous surges in that average earnings rose. government expenditure, did not contribute notably What are unions for? to either physical or social infrastructure—and the For Bramble, unions are intermediaries between slowdown in productivity growth. All this led to capital and labour that represent the worker’s interests the liberalisation of domestic markets; restructuring best when they are their most militant and are most the scope of government; and trade liberalisation to focused on mobilising the shop floor. (As long as create an economically sustainable welfare state based the union activists get their analysis right: Bramble’s on a mixture of employment and economic growth critique of the failure of left-militants in the face (increasing income and reducing demand on welfare) of the 1973–75 economic crisis as being due to with more targeted (and affordable) redistribution. their ‘disorientation’—i.e. inadequate revolutionary Despite attempts to characterise this resurgence of rigour—is a gem in its own way.) He sees the period liberal economics as some weird derailing of history from 1983 onwards as one where union officials (including giving it the highly misleading title of concentrated on the benefits to be had in being ‘neoliberalism’), the reforms were very much within co-opted into political and business networks while long-term patterns of responses to fiscal crisis. From their connections with their members withered. It is this co-option that he blames for the lessening the work of economic historians such as Douglass of ideological dispute within the union movement North, we can see that some combination of reducing and the more widely: not any larger transaction costs, re-assigning and more precisely trends in world affairs. defining property rights, plus seeking private funding That the Kelty program of union amalgamations for infrastructure (in modern terms: de-regulation, was a failure is hardly to be denied. Not a single corporatisation and privatisation) are a recurring union official position was lost while union coverage pattern in economic reform in Western Europe back fell dramatically, and fell more quickly in the to medieval times.

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New Zealand—as a smaller, narrower and more that they can ‘manage’ for their members passes vulnerable economy with a much more centralised Bramble by. As it does so many commentators. political system—had more entrenched problems Conclusion than Australia and reacted more dramatically. But in both Antipodean economies, the union movement In the end, union officials believed too much in their was tied to a complex regulatory structure whose own propaganda to perceive how much they were just implicit and explicit costs were increasing. The a vehicle for workers: and the more other vehicles response of becoming even more tied to the political became available for what workers wanted, the more structure actually moved them further away from competitive pressure unions would come under. By being the genuine service organisations that they failing to successfully adapt to competitive pressure, needed to become to retain member loyalty. unions have been steadily abandoned by workers. Worse, by parading politics as a way of delivering Ironically, by building up political mechanisms to benefits to their members as a substitute for union deliver benefits to workers the unions increased this action on wages, they actively undermined their competitive pressure. own value as providers of negotiation and risk management services. Use of statutory minima for wages and conditions turned lawyers into their By failing to successfully adapt to competitors: competitors who became increasingly competitive pressure, unions have been affordable competitors as household incomes rose. If benefits are to be politically delivered, advocacy steadily abandoned by workers. groups and ‘gotcha media’ also became alternative avenues for workers. But to perceive the reality of such competitive As household incomes rose (including from pressure, one has to see social choices for what they women entering the workforce and increased income are, not what one wants them to be. Bramble’s book transfers to working families), worker ability to is ultimately far too attached to congenial theory to cope with income variability, and the importance be a successful work of empirical analysis. Perhaps of controlling other elements in their work life, Marxism’s most serious analytical flaw is that it both increased—as did the appeal of various forms purports to be a complete structure of analysis when of self-employment. As intermediaries, it is in the it is clearly not so. The analytical flaws Bramble is interest of union officials to have worker income so firm in criticising Bill Kelty for loom large in his delivered in as complex and contingent (i.e. tied to own analysis—not seeing how the world actually specific job) ways as possible—particularly divided up looks from where workers are and the unresolved into lots of allowances and contingent benefits that contradiction between claiming that union officials union officials can trumpet achieving. Conversely, it have failed to connect with workers and their is better for workers to have their remuneration as concerns, while wanting workers to be willing foot simple and direct as practicable. Increases in the costs soldiers in causes and outlooks not their own. of complexity—the ‘wedge’ of wasted resources—for But thus is the history and failure of Marxism. full-time permanent employment (the most easily Given the manifold failures of all the attempts to create regulated, and union-organised form of employment) ‘post-capitalist’ alternatives, Bramble’s endorsement left more resources to be garnered by moving to other of revolutionary rigour as what Australian workers modes of employment (casual, part-time, sessional, ‘need’ is not quaint, it is contemptible. This is contract, etc.) that allowed more efficient use of particularly so because revolutionary elites using their resources: hence higher rates of profit, more income position to act in their own interests—precisely what in direct wages rather than contingent benefits, and a he damns union officials for doing—is at the heart of wider range of positions that catered to diversity and the failure of socialism: the concentration of power were far less easily union-organised. Unsurprisingly, required to ‘transform’ the society giving them vastly as the gap between the interests of workers and union more scope to so act. officials grew, unionisation rates fell—particularly Underneath the rather selective facts and scholarly among private sector workers (a dramatic trend apparatus—even given its genuine perceptiveness on Bramble fails to note). some key issues—this is social analysis parading as a That many employer organisations have a similar self-serving fairy tale. The union movement does not vested interest in there being regulatory complexity need more of such.

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