The trade union merger process : a study of trade union structural dynamics

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11

THE TRADE UNION MERGER PROCESS

A STUDY OF TRADE UNION STRUCTURAL DYNAMICS

Thesis _{submitted in Jeremy Waddington}

-fulfilment of a Department _{of Industrial} Relations

Doctorate _{of Philosophy January 1987}

Previous _{studies of} trade _{union structure} have _{relied upon} the differentiation _{of taxonomic} types. Descriptively, this _{method fails} to account

for the _evolutionary development _of trade _union form. Analytically, the categorisation of unions into ideal types and the accentuation of the pure form

have _acted to _{emphasise stasis} to the _{exclusion of} the dynamic _elements inherent _within trade _{union structural} development. _{In order to overcome these} shortcomings this thesis relies upon the identification and analysis of the

inter-relationships between trade _{union structural events.} There _{are four such} structural events: mergers, formations, dissolutions and breakaways. The central analytical focus is upon the trade union merger process, its causal influences

and its relationship with other structural events.

The wave pattern of occurrence observed in aggregate merger activity forms the initial focus. Multivariate _analysis is _employed to _{generate a framework} within which this pattern is examined. The results of the multivariate analysis suggest a changing relationship between the merger process and its

environmental influences during different phases in the institutionalisation of industrial _relations. Analyses _of the _{changing shape of merger activity and} differences in its form during _the two _{principal merger waves} lend further

support to the notion that the _merger process has undergone an evolutionary development.

The inter-relationships _{between merger activity and other} forms _of structural events also suggest variation over time. The pattern in these

variations is related to existing _{explanations of merger} activity in order that their _{merits and limitations can be considered. The extraction of elements of}

these _{explanations allows} for _{the generation of an alternative account of the} developments in _{merger activity} based _{upon the} integration _of the _extracted

COITEITS

LIST OF TABLES i

LIST OF FIGURES iii

LIST OF ABBREVIATIONS AND SYXBOLS _v

1. INTRODUCTION 1

SETTING THE SCENE 1

AN OVERVIEW OF THE AIMS, METHODS AND LIMITATIONS OF THE STUDY 11

THE STRUCTURE OF THE THESIS 18

FOOTNOTES 20

2. _{THE VAVE PATTERN OF TRADE U19ION STRUCTURAL DEVELOPMENT} 21

OVERVIEW OF THE WAVE PATTERN OF MERGER ACTIVITY 23

The Aggregate _{Wave Pattern of Merger Activity} 23

The Merger Wave Pattern _{Among Unions of Different} Sizes 26

THE WAVE FORM OF TRADE UNION STRUCTURAL EVENTS 30

The Formation Rate 30

The Dissolution Rate 34

The Breakaway Rate 35

TOWARDS A THEORETICAL FRAMEWORK 37

Existing Explanations 37

Long Cycles 41

Trade Union Organisation 45

Merger as a Strategy Towards Goal Achievement 50

CONCLUSION 53

FOOTNOTES 56

3. THE DEVELOPIEHT AND OPERATIONALISATIOB OF THE EXPLANATORY

FRAXEVORK 59

THE INFLUENCES 01 MERGER ACTIVITY 62

The Environmental Influences 62

Organisational Influences 73

OPERATIONALISATION OF THE EXPLANATORY FRAMEWORK 78

Methodological

Issues

78

Economic Variables 84

Unionisation Variables 91

Political Variables 95

CONCLUSION

100

FOOTNOTES

102

4. XULTIVARIATE ANALYSES 103

PRESENTATION OF RESULTS 104

BUILDING THE EXPLANATION 109

The Economic Explanation 109

Unionisation _{and the Merger Process} 117

THE AGGREGATE EXPLANATION 127

Expectations _{from the Analytical} Framework 127

The Implementation _{of Collective} Bargaining 128

The Operation _{of Institutionalised Industrial} Relations 133

CONCLUSION 139

FOOTNOTES 142

5. MERGER DIRECTION 143

MERGER DIRECTION 144

ACQUIRING UNIONS 153

Worker Involvement ₁₅₃

Size of Acquiring Unions 154

Acquisition Proportions 155

THE EVIDENCE ON MERGER DIRECTION 158

Geographical _{and National Mergers 158}

The Shape of the Merger Process 160

TOWARDS AN EXPLANATION OF THE CHANGING SHAPE OF THE MERGER

PROCESS ₁₆₂

Company Mergers _{and Merger Shape 165}

Union Density ₁₆₇

Merger Shape and TUC Policy 170

CONCLUSION ₁₇₄

FOOTNOTES ₁₇₆

6. _{INSIDE MERGER VAVES 178}

SUMMARY

STATISTICS

179

MERGER

_{ACTIVITY OF THE TEN LARGEST UNIONS DURING THE WAVES}

₁₈₃

Wave I: _{1918 - 1924} 184

Wave II : 1966 - 1983 188

Emergent Themes 193

FORMATION DATES ₁₉₅

Wave I ₁₉₆

Wave II ₁₉₇

Developing _{the Themes} 199

CENTRALISATION ₂₀₀

Centralisation _{1918 - 1924} 201

Centralisation _{1966 - 1983 209}

Centralisation _{1918 - 1924 and 1966 - 1983:}

A Further _{Thematic Development} 215

CONCLUSION: A RETURN TO THEORY 216

FOOTNOTES

221

7. _{ORGANISATIONAL INSTABILITY DURING THE DIPLEMENTATIOH OF}

COLLECTIVE BARGAINING 222

DISSOLUTIONS: THE DECLINE OF ORGANISATIONAL STABILITY 223

Regression _{Results 224}

Life _{Cycles of Dissolving Unions 227}

Emergent _{Themes 230}

TRADE UNION FINANCIAL STABILITY 232

A Further Thematic Development

ECONOMIC FACTORS AND INTERNAL UNION POLITICS 1893 - 1914

1914 - 1918 1919 - 1939 CONCLUSION

FOOTNOTES

8. _{ORGANISATIONAL INSTABILITY DURING THE OPERATION OF} INSTITUTIOJALISED _{INDUSTRIAL RELATIONS}

MERGER INTENSITY AMONG UNIONS OF DIFFERENT SIZE GROUPS Size Group 1

Size Group 2 Size Group 3

Emergent Themes

DISSOLUTIONS: THE DECLINE OF ORGANISATIONAL STABILITY Regression Results

Life Cycles _{of the Dissolving Unions} Developing the Themes

BREAKAWAYS

TRADE UNION FINANCIAL STABILITY

ECONOMIC

FACTORS

AND INTERNAL UNION POLITICS

1946 - 1967

1968 - 1979

The Incorporation _{of Workshop Organisation} CONCLUSION

FOOTNOTES

9 CASE STUDY I: TECHNOLOGICAL CHANGE IN THE PRINTING INDUSTRY THE INTRODUCTION OF LINOTYPE, 1893 - 1924

Period Trends The Technology

The Wider Implications

The Merger Process in THE ADVENT OF SILICON-CHIP

Period Trends

of Technological Change Printing _{; 1893 - 1924}

BASED SYSTEMS, 1966 - 1983

The Technology _{and its} Implications

The Merger Process in Printing _{: 1966 - 1983} CONCLUSION

10. CASE STUDY II: STRUCTURAL DEVELOPXENTS IN THE DATA

STRUCTURAL EVENTS AND THE WIDER ENVIRONMENT The Implementation _{of Collective} Bargaining The Operation _{of Institutionalised} Industrial

MERGER ACTIVITY AND THE DEVELOPMENT OF PRINCIPAL Civil _{and Public Services Association}

Society _{of Civil and Public} Servants Inland _{Revenue Staff Federation}

Civil Service _Union

NATIONAL GOVERMNT

CONCLUSION 361

FOOTNOTES 364

11. CONCLUSION 365

AN OVERVIEW OF FINDINGS 366

The Implementation _{of Collective} Bargaining 367

The Operation _{of Institutionalised} Industrial Relations 370

The Inter-Relationships Between Structural Events 373

ALTERNATIVE EXPLANATIONS OF TRADE UNION STRUCTURAL DEVELOPMENT 375

Undy et al.: The Centrality of the Leadership Role 375

Collective Bargaining 378

Expanding _{upon the 'Level of Bargaining} Account' 383

Suggestions _{towards an Integrated} Explanation _{of the}

Merger Process 389

THE FUTURE 395

FOOTNOTES 399

APPENDICES

A. PRIMARY AND SECONDARY DATA SOURCES 400

B. CORRELATION COEFFICIENTS 424

C. REGRESSION RESULTS, ECONOMIC, UNIONISATION ANDPOLITICAL

VARIABLES: DEPENDENT VARIABLE, INTENSITY 426

D. PRINTING INDUSTRY MERGERS 427

E. TRADE UNION STRUCTURAL EVENTS IN NATIONAL GOVERNMENT 431

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LIST OF TABLES

2.1 Merger Activity During _{Wave and, Non-Wave, Periods} 2.2 _{Number of Unions Absorbed by Size of Union}

2.3 Membership Absorbed _{by Size of Union}

2.4 Indices _{of Merger Activity by Long Cycle of Economic} Development

4.1 Regression Results, Economic Variables _{: Dependent Variable,} Intensity

4.2 Regression Results, _{Economic and Unionisation} Variables Dependent Variable, Intensity.

4.3 Regression Results. Political Variables _{: Dependent} Variable, Intensity.

4.4 Regression Results, Aggregate Explanations for the Period

of the Implementation of Collective Bargaining : Dependent Variable, Intensity.

4.5 Regression Results, Aggregate Explanations for the Period of the Operation of Inststutionalised Industrial Relations Dependent Variable, Intensity.

6.1 Composite Mergers _{and Unions Formed Through} Merger.

6.2 Comparison _{of Manual and White-Collar} Absorptions During the Merger Waves.

6.3 Membership _{Growth and Merger Activity} During Wave I of the Ten Largest Unions in 1924.

6.4 Membership _{Growth and Merger Activity} During Wave II of the Ten Largest Unions in 1983.

7.1 Regression _{Result, Aggregate Explanation} for the Period

of the Implementation _{of Collective} Bargaining _{: Dependent} Variable, Dissolution Rate.

ii

7.2 The Pattern _{of Union Finances} During the Implementation

of Collective Bargaining. 234

7.3 Regression Result, Union Expenditure _{and Merger Activity} During the Implementation _{of Collective} Bargaining

Dependent Variable, Merger Intensity. 240

8.1 Regression Results, Explanations _{of Merger Intensity among} Different _{Sized Unions for the Operation of Institutionalised}

Industrial _{Relations : Dependent Variables,}

-

Size Groups 1,2 _{and 3.} 267

8.2 Regression _{Results, Explanations for the Dissolution} Rate During the Operation _{of Institutionalised} Industrial

Relations _{: Dependent Variable,} Dissolution Rate. 278

8.3 The Life Cycles _{of Breakaway} Unions During the Operation _of

Institutionalised Industrial Relations. 283

8.4 The Pattern _{of Union Finances} During the Operation _of

Institutionalised Industrial Relations. 286

8.5 Regression _{Result, Union Expenditure and Merger Activity}

During _{the Operation of Institutionalised} Industrial Relations

Dependent Variable, Merger Intensity. 290

A. 1 The Primary Data. 400

A. 2 (i) Secondary Data 418

A. 2 (ii) Secondary Data 421

B. 1 Correlation _{Coefficients: The Period of the Implementation}

of Collective Bargaining, 424

B. 2 Correlation Coefficients: _{The Operation of Institutionalised}

Industrial Relations. 425

C. 1 Regression _{Results, Economic, Unionisation and Political}

Variables:

Dependent Variable,

Intensity.

426

D. 1 Printing Industry Mergers _{: 1893 - 1924.} 427

D. 2 Printing Industry Mergers _{: 1966 - 1983.} 429

E. 1 _{Trade Union Structural Events in National Government 1893 -}

- iii -

LIST OF FIGURES _{ý, ..} M

Following

Page No. 2.1 Five-year _{Moving Average of the Intensity of Merger}

Activity, _{1893 - 1983. 23}

2.2 Five-year _{Moving Average of the Density of Merger}

Activity, _{1893 - 1983. 23}

2.3 Three-year _{Moving Average of Merger Intensity among Unions}

Organising _{2,499 Members or Less. 29}

2.4 Three-year _{Moving Average of Merger Intensity among Unions}

Organising

_{Between 2,500 and 14,999 Members.}

₂₉

2.5 _{Three-year Moving Average of Merger Intensity among Unions}

Organising _{More Than 15,000 Members. 29}

2.6 Five-year _{Moving Average of the Formation Rate. 30}

2.7 Five-year _{Moving Average of the Dissolution Rate.} 34

2.8 _{Five-year Moving Average of the Breakaway Rate. 35}

5.1 Five-year _{Moving Average of Worker Involvement}

in Merger Activity. 153

5.2 Five-year _{Moving Average of the Mean Size of Acquiring}

Unions. ₁₅₄

5.3 _{Five Year Moving Average of the Proportion of Unions}

Absorbed _{By Size Group of Acquiring Union. 155}

5.4 _{Five Year Moving Average of the Proportion of Membership}

Absorbed _{by Size Group of Acquiring Unions. 155}

5.5 _{Five Year Moving Averages Showing the Relative Proportions of} the Merger Process Constituted by National _{and Geographical}

Mergers. ₁₅₈

5.6 _{Five Year Moving Averages Showing the Relative Proportions} of the Merger Process _constituted by National _and

iv

5.7, _{The Shape of the Merger Process by Unions Absorbed. 160} 5.8 _{The Shape of the Merger Process by Membership Absorbed. 160}

6.1 _{The Shape of the Merger Waves. 181}

6.2 Formation _{Dates of Unions 'Dying' during} Merger Wave I. 195 6.3 Formation _{Dates of Unions 'Dying' during Merger Wave II. 195}

6.4 _{The Number of Federations. 201}

7.1 Life Cycles _{of the Unions} Dissolving _{Between 1889 - 1907 and}

1920 - 1933. 227

7.2 Formation _{Dates of the Unions Dissolving 1889 - 1907. 228} 7.3 Formation _{Dates of the Unions Dissolving 1920 - 1933. 228}

7.4 Unions Dissolving During the Dissolution _{Wave 1889 - 1907}

by the Industry _{from which they Recruited.} 229

7.5 _{Unions Dissolving During the Dissolution Wave 1920 - 1933}

by the Industry _{from which they Recruited.} 229

7.6 _{Five Year Moving Averages of Merger Intensity, Strike}

Frequency _{and Trade Union Membership. 245}

8.1 _{Formation Dates of Unions Dissolving 1973 - 1980. 279}

8.2 Life Cycles _{of the Unions Dissolving Between 1973 - 1980, 280} 8.3 Unions Dissolving _{during the Dissolution Wave 1973 - 1980}

by the Industry _{from which they Recruited. 280}

8.4 _{Five Year Moving Averages of Merger Intensity, Trade Union}

Membership _{and Strike Frequency. 294}

10.1 _{The External Shape of National Government Trade Union}

Structure. ₃₃₃

10.2 _{Union 'Births' in National Government. 333}

10.3 _{Union 'Deaths' in National Government. 334}

10.4 _{Five-year Moving Averages of the Formation Rate, Dissolution}

-v- LIST OF ABBREVIATIONS AND SYIBOLS

UNIONS

ABS Association _{of Broadcasting} Staff. ACA Assistant Clerks' Association.

ACTT Association _{of Cinematograph,} Television _{and Allied} Technicians.

AEOCS Association _{of Executive} Officers _{of the Civil} Service.

AEOOCS Association _{of Executive} Officers _{and Other Civil} Servants.

AEU Amalgamated Engineering Union.

AOT _{Association of Officers of Taxes.}

APEX Association _{of Professional} Executive, Clerical _{and Computer Staff.}

ASBSBSW _Amalgamated Society _{of Boilermakers,} Shipwrights, Blacksmiths and Structural Workers.

ASCJ Amalgamated Society _{of Carpenters and Joiners.} AScW Association _{of Scientific} Workers.

ASE _{Amalgamated Society of Engineers.}

ASLEF Associated Society _{of Locomotive} Engineers _{and Firemen.}

ASLPA _{Amalgamated Society of Lithographic} Printers _{and Auxilleries.} ASPD _{Amalgamated Society of Painters and Decorators.}

ASSET Association _{of Supervisory} Staffs, Executives _{and Technicians.} ASTMS Association _{of Scientific,} Technical _{and Managerial} Staffs.

ASW _{Amalgamated Society of Woodworkers.}

ATC

_Association

_{of Tax Clerks.}

AUBTW _{Amalgamated Union of Building Trade Workers.} AUEW _{Amalgamated Union of Engineering Workers.}

BIFU _{Banking, Insurance and Finance Union.}

- vi -

CMA Communication Managers' Association. COA Clerical Officers' Association.

CPSA Civil _{and Public} Servants Association.

CPWA Caxton Printers' Warehousemens' Association. CSCA Civil Service Clerical Association.

CSU Civil Service Union.

CWU Chemical Workers' Union.

DATA Draughtsmen _{and Allied} Technicians Association.

DM Durham Miners.

DWRGLU Dock, Wharf, Riverside _{and General} Labourers' Union.

EETPU Electrical, Electronic, Telecommunications _{and Plumbers} Union. EO(T)A Engineering Officers' (Telecommunications) Union.

ETU Electrical Trades Union. FDA First Division Association.

GMBATU General, Municipal, Boilermakers _{and Allied} Trades Union. GMMGA Government _{Minor and Manipulative} Grades Association.

GMWU _{General and Municipal} Workers' Union.

IPCS Institution _{of Professional} Civil Servants. IRSF Inland Revenue Staff Federation.

ISTC _{Iran and Steel Trades Confederation.} LSC London Society _{of Compositors.}

LSW _{London society of Warehousemen.} MEA Municipal Employees Association.

MLSA Ministry _{of Labour Staff} Association.

NAACT National Association _{of Assessors and Collectors of Taxes.} NALGO National _{and Local Government} Officers' Association.

NAOP _{National Association of Operative} Plasterers. NAPWC _{National Printers' Warehousemen and Cutters.}

- vii -

NATSOPA National Association _{of Operative} Printers, Graphical _{and Media} Personnel.

NES National Electrotypers _{and Stereotypers.} NGA National Graphical Association.

NTWF National Transport Workers' Federation.

NUAAW National _{Union of Agricultural and Allied} Workers. NUBE National _{Union of Bank Employees,}

NUBMR National _{union of Bookbinders and Machine Rulers.} NUGMW National _{Union of General and Municipal} Workers. NUGW National _{Union of General Workers.}

NUJ National _{Union of Journalists.}

NUM

National

_{Union of Mineworkers.}

NUPBPW National _{Union of Printing,} Bookbinding _{and Paper Workers.} NUPMW National _{Union of Paper Mill} Workers.

NUPE

_National

_{Union of Public Employees.}

NUR _{National Union of Railwaymen.} NUT National _{Union of Teachers.}

NUWDAT National _{Union of Wallcoverings,} Decorative _{and Allied} Trades.

NWQ _{North Wales Quarryman.}

POEU _{Post Off ice Engineering Union.}

PPMM Platen Printing Machine Minders.

PSWCAU Printers _{' and Stationers' Warehousemen, Cutters and Assistants} Union.

SALSA Sun Alliance _{and London Staff Association.} SCPS Society _{of Civil and Public Servants.}

SCS,

_{Society of Civil Servants.}

SDCA _{Second Division Clerks Association.} SGA _{Scottish Graphical Association.}

ti

SLADE Society _{of Lithographic Artists, Designers, Engravers and Process} Workers.

- viii -

STE _{Society of Telecom Executives.}

SWM _{South Wales Miners.}

TA Typographical Association.

TASS Technical, Administrative _{and Supervisory} Section (of AUEW). TGWU Transport _{and General} Workers' Union.

TUC

_{Trades Union Congress.}

UCATT _{Union of Construction, Allied Trades and Technicians.} UCW _{Union of Communication Workers.}

UKAPE United _{Kingdom Association of Professional} Engineers. USDAW _{Union of Shop, Distributive and Allied} Workers,

VCA _{Valuation Clerks' Association.}

VOCA _{Valuation Office Clerical Association.}

VU _{Workers' Union.}

YM Yorkshire _Miners,

REGRESSORS

oRW Rate of Change of Real Wages.

RW _{Level of Real Wages.}

GWR Rate of Change of Money Wages. oP Rate of Change of Retail Prices.

PEAK _{Index of Business Cycle Peaks.}

TROUGH _{Index of Business Cycle Troughs.}

COMER _{Number of Manufacturing Company Mergers.} UDEN _{Level of Union Density.}

oMEM

_{Rate of Change of Union Membership.}

FUNDS _{Level of Union Funds per Member.}

FORM _{Formation Rate.}

STCONC _{State Expenditure as a Proportion of Gross National Product.} MP _{Number of Trade Union Sponsored Members of Parliament.}

- ix -

1917 _{Trade Union (Amalgamation) Act 1917.} 1964 _{Trade Union (Amalgamation) Act 1964.}

BREAK _{Breakaway Rate.}

DISS _{Dissolution Rate.}

TREND _{Time Trend.}

DB _{Union Expenditure on Dispute Benefit.} OTHER _{Union Expenditure on Other Costs.}

PBUB _{Union Expenditure on Provident and Unemployment Benefits.}

OTHER ABBREVIATIONS

o The Rate of Change of a Variable.

D-W

_{Durbin-Watson Statistic.}

R2

_Coefficient

_{of Determination,}

_{Corr ected for Degrees of Freedom.}

*** _{Indicator of a Variable Attaining 1 per cent Significance,} ** _{Indicator of a Variable Attaining 5 per cent Significance.}

Indicator _{of a Variable Attaining 10 per cent Significance.}

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1

ITT80DUCTIOT

The objective of this study is to analyse British trade union

structural development since 1893 and to explain the evolving pattern of the trade _{union merger process.} Trade _{union structure} is regarded _{as the}

'external _shape' (Hyman, 1975: 36) _or 'morphology' (Turner, 1962: 233) _of trade _{unionism. As such,} it is distinguished, following Clegg, from

trade _{union government,} the _{study of which} is focused _upon the

'relationship between the _various decision-making bodies _{within a union'}

(1970: 41). This distinction is _{not meant} to imply that trade _union

government does not influence the development of trade union structure, but to indicate _{the central} focus _{of this study.}

British _{trade union structure} is _noted for its _{complexity and}

heterogeneity. _{Turner states} that this _reflects the 'deposit _of

successive waves of trade union expansion' (1956: 58). A primary feature

of this heterogeneity in form is the widespread overlapping in trade

union memberships, creating trade union structural tensions which induce a continual' process of evolutionary development. External influences

also

impinge

upon this

development

with

the- result

that

trade

union

structure has a continually changing appearance. As Hyman has stated, the tension between _{unifying and divisive pressures} is in

practice _{almost universal, within} individual unions as well

as between them: and this

gives union structure

at any point

of time a dynamic character

(1975: 41).

While _{mergers are regarded as resulting} from _pressures towards

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influence _{their occurrence.} Indeed, the _{observed pattern of merger}

activity _{would seem to suggest} that a widespread _, inhibiting effect of. divisive _{pressures on merger activity} is dominant throughout the

majority of the period under study.

The academic study of trade union structure has rested-upon the taxonomic differentiation _{of unions} into 'ideal types'. In broad terms two _approaches

. to such classifications have been adopted, based respectively upon organisational structure and function. For _example, Hoxie (1924) _{structurally categorised} American _{unions into craft,}

trades, _{compound craft, quasi-industrial,} industrial _{and labour} types,

while functionally he delineated four varieties: business, _ýuplift,

revolutionary and predatory. In Britain it is customary to distinguish

three _union types: _craft, industrial _{and general.} Descriptively these

categories are _{widely regarded-as} inadequate, primarily on the grounds that there _{are no ideal-typical unions} in _existence. In Britain _there has _never been _an industrial _union in the _sense that _{no single}

organisation has achieved _exclusive jurisdiction over all occupations

regardless of the _{procedures employed} to define industrial boundaries.

'Few unions completely _achieved the (craft] ideal' (Clegg, 1970: 51), it being _{commonplace to 'bend the rules' to suit specific economic and}

industrial _{circumstances. Furthermore, if general unionism is regarded}

as referring to unions recruiting irrespective of industry _or occupation, again the category is inadequate for the _recruitment

patterns _of those _{unions with general aspirations are shaped} by the

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In appreciation of the analytical inadequacies _{of such taxonomies,}

they _{are traditionally applied} in _{combination with the notion of}

membership _size to _examine the larger _unions (for _example, by Clegg (1970: 43-49) _{and Hyman (1975: 39-41)). Such reviews illustrate the} diversity _{of organisation and the tendencies towards the ideal typical}

form among larger _unions. In focusing _{upon the} larger _{unions, however,}

such an approach fails to take into _{account variations within} these tendencies _{among unions of intermediate and smaller sized memberships.}

Indeed, it _{can be plauspbly argued that the preoccupation with larger}

unions, their _{categorisation} into types and the accentuation on the 'pure' form, has _acted to _obscure the dynamic _{nature of} trade _union

development. This is _particularly the _{case as these categories do not}

allow for differences in policy and strategy arising from membership

stability. growth and size to be taken into account. Similarly, the

geographical coverage of a union's recruitment base is excluded from

explicit examination.

Turner _{(1956 and 1962) attempted} to break through the impasse _of

reliance upon these taxonomic devices. He drew a distinction between two non-mutually _{exclusive categorical pairs: vertical and horizontal,}

and open and closed. Each dimension refers to a direction in recruitment

growth. Vertical growth refers to a recruitment pattern concentrated

-within a particular industry regardless of occupation. Horizontal _growth indicates _{a tendency towards recruitment} from _{within a specific}

occupation _{or group of occupations regardless} of industrial boundaries.

An open union _{exhibits a tendency} towards _recruitment from _{within any}

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upon the _achievement of maximum union density within a defined and

constant

_recruitment

base.

Amalgamation is _{one of} the _{means whereby a union may expand} its

recruitment base. Throughout the course of a union's development both policy towards, and the direction of, recruitment expansion may change. Similarly, _{as Hughes argues,}

What needs to be recognised, however, _{in any dynamic} inter-

pretation of union structures. is the great empirical importance of intermediate _patterns of union response, in which unions

may be open in certain directions of recruitment interest, but closed in others. Relative _openers, if it is a feature

of the environment of a union for some length of time, may profoundly _affect the consequent shape (and consequently

membership _and'policy interests) of a union. What in terms

of the traditional classification was a pure form may become a hybrid (1967: 5).

It

follows

_that

_recruitment

_expansion,

_whether

_attained

_{by merger or}

'natural _{growth', may act as bath cause and effect.} If the _recruitment

base of a union expands, recruitment may become competitive with unions

which the _{original union} would otherwise have had no contact. To

ameliorate

_{any deleterious}

_effects

of competitive

recruitment

a merger

may be sought which,

if

completed,

might create

further

boundaries

of

competitive _recruitment. In this _manner an initial limited _{opening of} the _recruitment base _{may necessitate a more widespread opening to}

accommodate the consequences _{of the initial} opening.

These

'intermediate

_patterns

_of

_union

_response'

_and

_the

difficulties _{in detecting policy changes towards the direction of}

'natural

_growth'

_{have precluded}

_the

_widespread

_adoption

_of

_Turner's

approach for the _{empirical study of trade union structural} development. More recent _{studies, such as. that of Undy et al.} (1981), _{have reverted,}

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categories _{and are exposed} to similar criticisms as earlier classifications, _{particularly,} their _{stress upon stasis} to the _neglect

of dynamics.

A further _approach to the _{study of} trade _{union structure} has

centred upon the notion of trade union concentration. Two elements _of this _{notion have been identified: organisational concentration and}

membership _{concentration.} Windmuller (1981: 43) _refers to organisational

concentration _as being 'the _{absolute number of organisations at a} particular level _of the _{union structure'.} Membership _{concentration} is defined by Estey (1966: 345) _{as 'the ratio of the membership of a given}

number of large

_unions

to total

union membership'.

Whatever the chosen

definition, _{concentration is a relative concept. As such, any}

suggestions _regarding the _{effects of changes} in _{union concentration on}

union _structural development _should be proffer/ed _{with some caution.}

A number of issues preclude the adoption of concentration _{as the}

central

_analytical

_concept

for

the purposes of this

_study.

Firstly,

_as

measured by a concentration _ratio,. he-measurement°-of _{concentration} does

not _allow for the _{analysis of structural} developments _{among smaller.}

unions. For _{example, assume a concentration ratio of} the ten largest unions _{was employed;} that is, the _{concentration ratio} is the _ratio between _{the membership of the ten largest unions and total trade union}

membership. A merger between the twentieth _{and the} twenty-first _ranked

unions _{would not} be captured by the _{concentration ratio, nor would a}

union formation _{or dissolution provided such an event} did _{not add to or} detract _{from the list of the ten largest unions.}

Secondly, _{to draw inferences regarding policy and strategy about}

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of concentration is fraught with both' analytical and methodological difficulties. Hyman (1983: 41-48). for _{example, notes} the divergent

patterns among unions regarding 'devolution and centralisation' in internal _{union organisation while aggregate union concentration showed a}

continued tendency to increase.

An approach to concentration _employing the 'variance _{of the loge of}

size' was utilised by Phelps-Brown _{and Hart} (1957) _{and Simpson} (1972). While this _{method, unlike the concentration ratio, allows for the}

analysis to include the impact _{of smaller unions on structural} development, _{a number of implications arise from the assumptions}

underlying the _{variance of} loge _{method which} limit its _usefulness. Simpson summarises these _assumptions:

First, that large, _{medium and small unions have the same} proportionate growth, and second that around this common average the dispersion of growth rates is the same for all

sizes. Third, the distribution is lognormal _{and lastly,} that

the relative dispersion _{of the size of unions tends to increase} over time (1972: 385).

To restate _-these points, if a population of unions of equal size

experience different growth _-rates, there will be an increase in the dispersion _{of sizes.} As this _{process continues so the} large _{unions will} become _{relatively larger which will be reflected in an increase in}

concentration. Employing _{such assumptions} Phelps-Brown _and Hart _were

able to conclude that

'the _{rise in the degree of concentration of British unions} as measured by the variance, has owed little to the decline

in the total _{number of unions or to 'births' and 'deaths' of} unions; and only a quarter of it can be ascribed to amal-

gamation. Most of it has been due simply to differences in the rates of internal growth of the unions' (1957: 14).

Obviously, _{the variance of logs method has an initial attraction in}

-7-

the properties of the log-normal distribution upon which its application

is based. Additionally, tests _{of statistical significance} can readily be

conducted on the measures of concentration derived from the

characteristics of the distribution. Against these points must be weighed a number"of disadvantages. 'Firstly, to assume that growth is a

'random' _process is to disregard the' _{complex of relationships} that

underlie the phenomenon and, _{more specifically,} the divergent policies

adopted by unions towards membership growth. Furthermore, integral to the _{notion of randomness for the proponents of the variance' of} logs

method is the assumption that union growth- is random in relation to

economic influences. Bain and Blsheikh (1976) have demonstrated.

however, that _{union membership growth} is intimately _related to

particular economic factors.

Further

_evidence

_leading

_{to the rejection}

_{of concentration}

based an

the log-normal _{distribution as the means to study} the dynamics _{of trade}

union structural development is provided by Hannah and Kay (1977). These

authors have demonstrated that the proportion of the tendency towards concentration that _{can be attributed} to merger activity is undervalued

through the _{use of the variance of' logs and,} in certain _{circumstances,}

actually produces a figure which suggests that a merger makes no

contribution towards concentration. '

If taxonomic _{categories and the methodology underlying existing}

approaches to the _{study of} trade union concentration do not provide a

satisfactory _{method to the analysis} of the impact of merger activity on trade _{union structural} dynamics'', _{the question arises"as} to what approach

-8-

structural "events: formations, "dissolutions, breakaways and mergers. A formation _{involves the establishment of a union where no organisation}

existed previously. The dissolution of a union occurs when an existing

organisation ceases to _{exist as an independent} entity. A section of a union which cedes to become an independent _organisation is a breakaway.

A _{merger occurs when two (or " more> 'unions' join together, the} independence _of (at least) _{one of the unions being subsumed within the}

other so that one independent _{organisation exists where} two (or'more) did beforehand. _{'It is the inter-relationships between' structural 'events}

that _allow for the _{examination of trade union structural dynamics. ', The}

influences _{acting upon'these dynamics can be studied in isolation or in}

combination.

As the central

_{focus of the study is upon merger activity,}

it

is to

the elaboration _{of aspects of this structural event} that the discussion

now turns. 'Mergers have _affected the development _{of unions' of all}

organisational forms _{and characters.} Single-craft _unions, initially the dominant form _{of union organisation, extended their recruitment} bases both _{geographically and vertically to form unions tending towards}

national organisation _{which exhibited} kindred craft structures. Mergers were influential in this _process. The 'new _model' form,, ' formally

initiated by the Amalgamated _{Society of Engineers (ASE) in 1851, was the}

result' of _{a merger. ' Similarly,} those _{unions regarded as most closely} approximating industrial _{organisation,} the National Union _{of'Railwaymen}

(NUR) and the National Union _{of Mineworkers'(NUX), were the outcome of}

-9-

archetypical

general

unions,

had their

origins

in multi-union

mergers

following.

Vorld Var I.

The organisations resulting from mergers need not be similar. As

the above indicates, there _{may be differences} in terms _{of organisational}

policy, structure and objectives. Furthermore, Chaison (1982b) has identified _various degrees _of integration _{among post-merger union}

governing structures. Drawing the distinction between amalgamations and absorptions, Chaison. delineates three degrees _{of post-merger} integration

within each merger, category, _concluding that 'there is _considerable latitude- in the degrees _{of integration of governing structures'}

(1982b: 148). The _{extent to which fusion, of post-merger governing}

structures is achieved, Chaison argues, is the result of the degree to which such structures are _. 'compromise solution[s] to the often-

conflicting goals of economy and efficiency in union administration and

structure on the one hand, _{and the} preservation of the interests of

union members, officers _{and staff,} on the other' (1982b: 149).

ý,

As there _{are degrees of post-merger} integration _{of organisation so}

there _are degrees _{of closer unity which, while often serving similar}

purposes to merger, do not constitute _{a merger.} Federal forms _{of union} organisation, inter-union _{working arrangements.,} (for _{example,. recognition}

of spheres of influence, _{mutual recognition of union cards and transfer}

of membership agreements) _{and other} forms _of 'strategic _{alliance' are} illustrations _{of closer unity in which unions maintain their separate}

identities _{yet yield a degree of independence. In certain circumstances,}

which are _examined in the body of the text, closer unity arrangements

- 10 -

had to be satisfied in order to secure a merger. The distinction between

closer unity arrangements and merger is, therefore, determined by the

satisfaction of legislative provision.

It follows from the discussion _{above that merger activity} in the

aggregate should be regarded _{as a} 'process'-, _along two principal dimensions. Firstly, _{merger activity embraces changes in union governing}

structures, policy and strategy. In this _sense the _ratification of a merger agreement may constitute _{one incident, albeit an important one,}

in _{a series.} Hypothetically, _{two unions may establish closer working}

arrangements while both _{are affiliated} to _{a federation,} These closer

working arrangements _{may be subsequently} formalised by merger which may

predate the fusion _{of governing structures.} For example, both formal _and

informal _{closer woking arrangements were established} between the GMWU

and the Amalgamated Society _of Boilermakers, Shipwrights, _{-, Blacksmiths}

and Structural Workers (ASBSBSW) before the 1982 merger between the two

unions to form the General. Municipal, Boilermakers and Allied Trades Union (GMBATU). _{Subsequent to the} formal _{merger agreement, a set of}

'core _{rules' applied to all members which were supplemented by separate}

rule books to cover the former GMWU and ASBSBSW sections. Similarly, the Executive Council _{was composed of two sections essentially comprising}

the Executive Councils _{of the two constituent unions.} Moreover, the ASBSBSW section _{maintained a separate} Annual Delegate Conference _which

was responsible for the-selection _of delegates to the TUC and Labour Party. _{The GMBATU Congress, -constitutionally the merged union's supreme}

authority, _{was the only} formal _{point of contact} between _{members of} the two former _{unions within the new organisation, delegates being elected}

- 11 -

timetable _{was agreed to further the extent of formal} integration between the' two unions, the _{point remains} that the _{ratification of} the _merger

agreement was simply a stage along a continuum of integration initiated before _{merger negotiations commenced.}

The second dimension _{along which aggregate merger activity} is

regarded as a process _relates to its historical _{role within} the development _{of trade union structure. ' Trade union structure at any point} in time imposes limitations _{on 'merger search' parameters' (Undy et}

al., 1981: 202) through the _{operation of 'the} tensions' inherent' in its form. It _{must also be acknowledged that mergers act to alter trade union}

structure. In, promoting trade _{union structural realignment, a merger} disrupts the _{nature of the structural tensions thereby establishing a}

changed set of merger _{search parameters.} ' In these circumstances the

ratification of a merger _{agreement represents} the culmination _{of a"stage} of structural development _{while simultaneously enabling} further _stages to proceed. `It _{can resonably be assumed, therefore,} that the influences

upon the merger process _{are not fixed} but vary, at least in degree, over time _{as trade union structure and behaviour, within the confines of}

which merger activity takes _{place, a(ß. transformed.}

AN OVERVIEW OF THE AI S. METHODS All) LIMITATIONS OF THE STUDY

The first _{section to this introductory chapter outlined the}

weaknesses in the _{current approaches} to trade _union 'structure ' with

respectýto the nature _{of trade union structural"dynamics.} An approach to the study _{of the merger process based upon trade union structural events}

- 12 -

merger process was discussed. Given that the principal focus is upon the merger process, it remains to be established which aspects of this process lie _within the ambit of the study.

Two dimensions

_{to the merger process have been identified:}

_that

relating to the ratification _{of a merger agreement as a point on a} continuum of degrees _of integration _within trade _{union governing}

structures, and that focusing _upon the inter-relationships between

merger activity and trade _{union structural} development. It is to the investigation _{of this} latter _{dimension of the merger process that this}

study is devoted. Stating this _{aim is not meant to imply} that the, former dimension is disregarded, _{but to concede that it is only considered. in}

detail in those _{circumstances in which it impinges upon the study's}

central focus.

Within

_these

_confines

_three

_aspects

_{of the}

_{inter-relationship}

between aggregate _{merger activity and trade union structural} development

are isolated for detailed _analysis. Firstly,

_ the pattern of occurrence of merger activity. A variety _{of measures are employed} to

. 'capture' the developing form _{of merger activity on the understanding that reliance}

upon a single measure _obscures its _complexity in _character. Secondly, the inter-relationships _{between aggregate merger activity and other} forms _{of trade union structural events. Particular emphasis is afforded}

to the divergent _{patterns in these inter-relationships between} historical _{periods in order that the nature of trade. union structural}

dynamics _{can be more fully elaborated. Thirdly, those factors impinging}

upon the pattern _{of aggregate merger activity are examined with} the

- 13 -

The aims of the study and the reliance upon the analysis of trade

union structural events to achieve them necessitates a statistical core to the presentation. Such an approach has achieved popularity in studies

of trade union membership growth and strike activity but has rarely been applied to merger activity. Freeman and Brittain regressed the number of American trade _{union mergers} in _{a given year against a series of}

variables representing 'economic stagnation and the labor unrest it produces' (1977: 179). Freeman and Brittain's approach and the hypotheses attached to it is characteristic in so far as a particular measure is

abstracted as the dependent variable and specific economic hypotheses

subsequently 'tested'. The object here is broader, based upon the

recognition that the merger process takes place within trade union

structure and, therefore, is influenced by factors additional to those traditionally labelled _{as 'economic'.} Furthermore, _whereas Freeman _and

Brittain deploy data from 1935 to 1973, _{a markedly} longer time _{span is}

utilised for this study in order to accommodate an analysis of, the developing historical _{nature of the merger process and its relationship}

with trade union structure and behaviour. - In other words, this study is not directly concerned with the testing of specific hypotheses grounded

in economic theory but with the changing pattern of occurrence of, and

the character of influences _{upon, aggregate merger activity.}

In stating an aggregate focus to this _{study, a number of issues are}

raised regarding the establishment of a general explanation., Chitayat (1979), for _{example, stresses that} the _{capacity to generate an overall}

comprehension of the merger process is limited due to the variation in the _{circumstances of} individual _unions. Coady _{(1976: 10, quoted in}

- 14 -

is a response to the _{specific needs of the unions} involved, _{and can be}

expressed only tenuously by reference to generalised social conditions'.

It is, _{of course, undeniable} that _{the circumstances of individual unions}

are specific both organisationally and at particular points in time during their development. While the impact _of 'generalised _social

conditions' may effect specific unions according to, for example, their organisational form, it is also manifest that these conditions impinge upon trade unionism as a whole and, therefore, the merger process in aggregate, albeit with different specific organisational effects. In

other words, each merger is a specific organisational realignment, ' imbued with peculiarities, yet is not an isolated event by reference to

trade _{union structure and the"factors} influencing its development. In

recognition of this complexity Chaison comments that

as researchers seek to uncover the common elements in mergers, cases will be made for varied degrees of generalisation. A

middle ground will have to be found between overly detailed'

case studies _{and sterile aggregate} data _analyses (1982b: 200).

To this _{end the regression analysis is supplemented by a variety of}

complementary analytical approaches. Firstly, the current research on

aggregate merger activity is purely reliant upon measures of the rate of its _occurrence. This _{study employs additional measures} in _order that

aspects of the merger process apart from frequency can be embraced within the analysis.

Secondly, _{in selecting a focus upon aggregate tendencies within}

the _{merger process, existing case study material is not disregarded but}

is _utilised to inform _{the analysis of these aggregate} tendencies through

its _{complemetarity with aggregate statistical analyses. While its use is}

- 15 -

discerned _{and allows} for _comments to _{be made regarding} the _extent to

which they typify the merger process organisationally and temporally. For _{example, Undy et al.} (1981: 167-219) draw _{generalised conclusions}

regarding merger activity in the 1960s and 1970s on the basis of four detailed _{case studies. The method adopted for this study allows} both for the _{situation of} these _{case studies within aggregate merger activity}

and, thereby, for an analysis to be made of their usefulness as a basis for _{generalisation.}

Thirdly,

_{on the understanding}

_{that the study of merger activity}

_is

one of an institution in process, _{an historical} dimension is explicitly

developed _{within the analytical framework. This allows for the pursuit}

of a number of analytical opportunities _{so far} left untouched. Research

on trade union behaviour has been influenced by the debates between

those _{researchers respectively advocating the primacy of}

industrialisation _{and institutionalisation. The historical grounding to}

this _{study allows} for the _{contrasting of} the _{role of} these _{sets of}

factors in influencing _{merger activity. Furthermore, this approach}

provides the opportunity to _{situate existing case study material not} only in cross section but _also in time _series. Additionally, _{and of} central import to the _{generation of an aggregate explanation of merger}

activity, the longitudinal basis to the _{study permits} the investigation

of the changes in the nature _{of the influential} factors _{and the purposes} towards _{which merger activity is directed. This assessment complements}

the _contrasts drawn _{between the impact on merger activity of}

industrialisation _{and institutionalisation.}

While _{the deployment of aggregate data facilitate the generation of}