What is the future of trade unions in the current world?

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Trade unions have slowly been silenced. They once had their golden age in Kenya and beyond. They fought for workers’ rights, moderating the excesses of capitalism. They have, however, suffered a slow puncture globally. 

But the first nail on the tyre was politics. Did it cause a slow puncture? Once the political leaders realised the power of the trade unions, they incorporated them into their “systems.”

Typically, keeping your enemies close. South Africa is a good example with the Congress of South African Trade Unions, and Kenya with the Central Organisation of Trade Unions. Have you noted how leading trade unionists align themselves with the government of the day? 

The alignment creates an interesting scenario; workers want to be union leaders to get closer to power and the perks that go with that, not to serve the downtrodden workers.

The new union leaders must balance the interests of the workers and power that be. They easily benefit from both sides; some hold political offices alongside their union posts. And the posts are lucrative. Want a hint? My union contribution is the same as the housing levy! 

Curiously, some countries like Germany saw the danger of that and incorporated workers into boards. That created a harmonious relationship, a disincentive to unionisation.

Some suggested that incorporation is too good for competition, leading to higher labour costs.  In other countries, new laws have slowed trade unions. 

The second nail was the market. Companies long realised that unions make them uncompetitive because of high labour costs. They started locating in countries and regions where unions are weak.

That is how American car makers, particularly new investors, started shifting to the south, such as Mississippi, Kentucky, Alabama, Georgia, and Texas, among others. Who wants to spend time fending off strikes instead of focusing on productivity and profitability?

The third nail was the shift to temporary workers. Add gig workers. They have no time to join unions, which denies them union membership and contributions. Why join unions if you can make more money in self-employment?

 The fourth nail has been technology. Long before artificial intelligence (AI), automation, mostly robotics, started taking over jobs. Workers feared they would be replaced, and unions kept a low profile.

Who can win against technology?  In Kenya, automation is still giving trade unions some clout, but not for long.

The unions’ slow puncture will continue. Can we try the German way and incorporate workers into the boards? What do you think?