Employer association strategy in a decentralised employment relations system : the case of the retail industry

In an environment of decentralised employment relations, employers associations must reassess their role if they are to remain relevant. The Australian Retailers’ Association faces a particular challenge. On the one hand, it has traditionally focused on the interests of the largest retailers, at one time even taking responsibility for the local industrial relations policies of the major retail stores as well as controlling industry wide industrial relations issues. This role is problematic now that all of the major retailers have their own company specific enterprise agreements. On the other hand, the retail industry has a very large number of small businesses, and these comprise over 90 per cent of the Association’s membership. The way in which the Australian Retailers’ Association has redefined its role in response to changing conditions is examined and assessed in the context of evidence from large and small retail businesses (Mortimer, 2001; Mortimer, Whiting and Bond, 2001), and in relation to the responses to change of other employers’ associations (Mortimer, Still and Bond, 2002). The article concludes that, while the Association was initially able to build on its existing strengths, and has been able to progressively respond in a strategic way particularly to the needs of small retailers, it is proving very difficult for it to remain relevant to its other core constituency, large retailers.