While the servicing model is difficult to precisely define, it generally describes an approach whereby unions aim primarily to satisfy members' demands for resolving grievances and securing benefits through methods other than direct industrial pressure from members such as industrial action or a strike.
In the Australian context, this model was encouraged through a comprehensive mechanism of centralized wage fixing and an industrial arbitration system. This system was particularly reliant on closed shops, and the ability of unions to obtain preference of employment for their members. In 1987 the ACTU Congress adopted a "Future Strategies" document. The aim of this document and the underlying strategy was to encourage union rationalization and thereby larger, more efficient unions that were more able to "service" their members' needs. This was further endorsed by the "Organization Of Resources And Services Of The Trade Union Movement Policy" adapted in the 1991 congress. Both of these strategies were aimed at improving the delivery of services to members, which was seen as necessary to halt membership declines during this period.
The period following the 1987 congress saw significant shifts in the Australian industrial relations landscape including:
- an end to closed shop arrangements that were sanctioned by legislation
- prohibition of secondary boycotts
- a move to decentralize the award system through enterprise based bargaining.
These changes made it increasingly difficult to retain union membership numbers and density by applying a purely servicing model.
Furthermore, the change that was brought about by the Workplace Relations Act 1996 curtailed the power of the Australian Industrial Relations Commission to resolve disputes by arbitration. This meant that in many cases the system of industrial arbitration was no longer available to resolve disputes, particularly where what was sought by workers was an increase in wages and conditions in excess of a centrally fixed "safetynet". For the first time since federation industrial action was sanctioned by federal legislation in certain defined circumstances. This meant that the bargaining strength of the respective industrial parties became a primary determinant of the outcome, and their ability to organize became crucial.
At Congress 2000 the unions adopted the "21st Century Organizing and Campaigning Policy" which effectively gave formal recognition to the growing need to focus on actively organizing workers to encourage membership growth, or adopt an organizing model. This change also reflected the need to change to succeed in a decentralized bargaining context. While there is considerable controversy amongst unions about what constitutes a servicing or organizing model, most Australian union structures incorporate a combination of both strategies to varying degrees.
The distinction between servicing and organizing is not unique to the Australian Union movement. The discussion between various models is also prominent in other countries such as the United States.
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