ABSTRACT

This chapter argues that an alignment of interests between capital and labour, demonstrated in voluntary cooperative relationships between enterprise managers and unions, is possible in liberal market economies, although relatively rare. The central question is: under what circumstances do these relationships develop and bear fruit for all participants? The chapter begins by selectively reviewing the literature and identifying challenges to measuring “success” in alignment of interests. Next, three related sets of factors that may support (or thwart) development of cooperation are identified: context in which the parties operate; agency of the parties; and historical path of relationships. Experiences of participants in successful examples of cooperation, drawn from primary data and published accounts, are discussed. These reveal how manifestations of the three factors have come together in particular times and places to support cooperation. They also reveal the significant challenges to sustaining alignment of interests in individual enterprises.

Keywords: Partnership; union interests; challenges for unions

INTRODUCTION

The point of departure for this chapter is the recognition that an alignment in the interests of labour and capital at an enterprise level, leading to the establishment of cooperative relationships and collaborative action by managers and unions, is possible, even though it is rare and often short-lived. Moreover, where and when these unusual examples of labour-management cooperation occur, they have benefited the enterprise, workers and unions through outcomes like financial stability of the enterprise, greater job security, improved job satisfaction and enhanced union influence and membership. We explore this by identifying some examples of alignment from various “liberal market economies” and show how they are largely exceptional, depending on how “success” and/ or “alignment of interests” are defined and measured. So, the key question is: under what circumstances does this alignment occur? Our answer to this explanatory question is not a simple one and focuses upon three sets of factors, which must come together at a particular time and in a particular place. First, the context in which the parties operate; second, the agency of the parties (i.e. the particular representatives of labour and capital involved); and third, the historical path by which relations within the enterprise evolve.

In exploring these three sets of factors and the way they come together, we draw on a well-established English-language research literature and primary data from over 140 semi-structured interviews conducted in Australia between 2015 and 2021.