Employer Association Responses to the Effects of Bargaining Decentralization inAustralia andItaly: Seeking Explanations from Organizational Theory

Abstract

The literature has neglected to analyse employer associations as organizations facing potential environmental threats to their financial sustainability. We examine associations' responses to collective bargaining decentralization, a major, contemporary threat. Using a qualitative, comparative case approach, we examine eight associations — four each in Australia and Italy — to develop a model of response types. Stronger decentralization effects increase associations' exposure to new and heightened competition, which in turn produces stronger association responses. These include prioritizing commercial over associational objectives. We analyse responses using strategic choice and resource dependence theories, finding that associations use both. However, the decision how to combine them reflects environmental conditions as well as choices linking organizational purpose and financial sustainability.

The decline of Employers’ Associations in the UK, 1976–2014

“…They altered their existing product to bring it more in line with perceived customer needs and have been developing new offerings' (Silvia andSchroeder, 2007: 1451). Finally and most recently, Sheldon et al (2016) examined responses to change within Australia and Italy across eight EAs. Three factors driving change were identified.…”

“…We draw on the UK and international literature on employer collective action (e.g. Traxler, 2000;Behrens and Traxler 2004;Sheldon and Thornthwaite, 2004;Sheldon et. al.…”

Intra-industry competition among employer associations: a case study of the retail sector

“…Those which are perceived to be hostile or unfavourable to the interests of businesses and employers serve as a unifying mechanism against which the latter may rally and therefore encourage business collaboration. Sheldon et al (2014) expanded on the mechanisms that drive the adaptive responses of employer associations. Their research introduced the concept of product market competition as a moderating factor that affects an association's response.…”

“…In a recent paper, Sheldon et al (2014) introduce the notion of product market competition, with the likes of professional services firms and inhouse human resource ('HR') functions now competing for space occupied by EAs. In that study, however, competition between industry-based associations is not explored.…”

“…These propositions are developed in an effort to build on the model of EA renewal proffered by Sheldon et al (2014) by explicitly introducing intra-industry competition as a key variable.…”