Abstract
Aim: This thesis deals with doing a critical analysis of strategic management in The Danish Confederation and Trade Unions (LO). The LO- trade unions are challenge by fewer members and less power in the society. The unions are being proposed new ways. One of this new ways is the introduction of a business model of strategic management, inspired by the alternative trade unions, who are not a contracting party in the Danish labor market model. This is suggested by Carsten Lé Madsen in his book: “For medlemmernes skyld“. The aim of this thesis is therefor, making a analysis which has a critical aim, where the exciting literature about trade unions in Denmark, are being used to recap the oversights in Madsen’s contribution and the positive and negatives effects to the challenges which the trade unions are standing in front of. The thesis examines following questions:
How does Carsten Lé Madsen's proposal about business-like strategic management in the Danish LO trade union movement cope with the conclusions of the existing research from CARMA and FAOS, and does the proposal strengthen the LO federations power by incorporating a business dominated strategic management, in relation to the identified challenges for LO in the first part of this thesis?
Method: The method is a qualitative research method, which contagions documents as a source to do a critically analysis of business-like strategic management. The documents are selected by following criteria’s: New contributions to what Trade Unions in Denmark should do to get out of it crisis (“Kollektiv Handling” by Ibsen, Schuer and Høgedahl) and studies of trade union members (APL-study and LO-documentation). These are chosen to pinpoint some of the oversights in Madsen’s suggestions. The theory in this thesis is also chosen to give another point of view on the business management-theory that Madsen introduces to the Trade Unions. Trade Union theory, power-theory, the basis of strategic management and the value-based management have been chosen to cover; why people are members and that it would mean a shift in values for LO-trade unions if they incorporate Madsen’s suggestions into the organizations.
Results: The critical analysis shows some oversights. Both the power of being a part of the collective agreement-system and the member-democracy in the trade unions are crucial to regain the strength of trade unions in LO. Madsen recommendations have some good points about more focus on individuality among members of the trade unions. Unfortunately he does not focus on the members wishes. They want more focus on subjects, which are agreed on in the collective agreements and in legislation. Madsen does not take these points in consideration nor does he consider the fact of losing power by remodeling the trade unions structure of democracy, into customer based unions. The loyalty of members cannot be transferred onto a costumer. With Madsen’s suggestions the LO-unions risk losing even more members, more power and become close to the employer’s associations.
Keywords: Strategic management, Trade Unions in Denmark, LO, Carsten Lé Madsen, management, business, value, service, collective agreement, value-based, power.