LITERATURE REVIEW
Scholars in Britain largely ignored the relationships between social democratic parties and unionsuntil the rise of New Labour (Ludlam, Bodah and Coates 2002). In one of the few major studies inthis area before the electoral triumph of New Labour in the UK in 1997, Lewis Minkin (1991:658),argued: “this is a relationship which, contrary to much mythology, is becoming more not lessintegrated”. In essence, Minkin argued that the relationship was resilient because both sidescontinued to receive important benefits from it.Globalisation and neo-liberal policies created a more hostile environment for unions (Peetz 1998,Rachleff 2006: 458, Teicher et. al., 2007: 126), and led to a loss of membership and weakened wage bargaining positions (Frege and Kelly 2003: 8). Scholars have also recognised that union declinehas varied greatly in its size, nature and impact across countries (Frege and Kelly 2003: 8), with theimpact of globalisation on unions being less severe in many Western European countries than in theUK, USA, Australia and NZ. Accounts of these union setbacks usually include a perceived declinein union influence on social democratic parties. Piazza (2001: 413) described as ‘conventionalwisdom’ the idea that globalisation has prompted de-linking of social democratic parties andunions. Many other scholars have also argued that the links between political parties and unions inWestern Europe have been in decline over recent decades (Howell 2000: 201, Moschonas 2002:319, Rueda 2007: 2).Valenzuela (1992), a Chilean scholar, argued that the circumstances of their creation have anenormous and lasting impact on the character of labour movements. He used a typology with fiveforms: social democratic, pressure group, contestatory, confrontationist, and state-sponsored. Thecontestatory category refers to countries where the labour movement is split along ideological,religious, or other, lines. The confrontationist and state-sponsored categories are found in countrieswhere there are authoritarian regimes. The first two of these forms are, however, relevant to thisdiscussion; the social democratic form in which “unions link up to form basically one nationalorganisation that in turn connects itself with a single, relatively strong party” (1992:55) and the pressure group form in which “unions link themselves with a pre-existing party or fragments of it”(1992: 55). Pressure group links are much looser and less formal than they are in the socialdemocratic model.Valenzuela argues that because unions in countries with social democratic type unions-partyrelationships were able to achieve a high-level of consolidation early in their histories, throughdirect employer negotiations, their leaders, and those of the parties they aligned with, adopted “amoderate socialist viewpoint with an incremental and reformist style of political action” (1992: 69).Valenzuela also argued that the close links between unions and parties in the social democratictype, together with this moderate and reformist style, lends itself to the development of corporatismin democratic societies (1992: 69).Valenzuela’s pressure group type is based on the experience of the USA (1992: 77). Valenzuelaargued that during the 1960s the relationship between American unions and the Democratic Partycame to resemble the relationship between the British Labour Party and unions during the same period. Nevertheless, he argues, the lack of a formal, organisational link remains an important anddistinguishing difference. American unions must always “exchange electoral support for individualcandidates for their promises of support for union causes at the legislative and governmental level”(1992: 78). In Britain, Valenzuela argues, unions can pretty much take it for granted that Labour members of parliament will vote for the option most favourable for unions amongst those optionsunder consideration (1992: 78). The organisational link, or its absence, therefore, is highly
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