Trade unions across the world are continuing to experience a serious decline in membership, according to the latest annual report of the International Labour Organisation. Even in states like Ireland, where overall membership is increasing, the actual percentage of the workforce in a trade union is tending to fall.

The report expresses concern that the decline in trade union membership may affect social cohesion in some industrialised countries, particularly in central and eastern europe. It says that unions and employers are at a crossroads in determining the future of industrial relations.

The ILO, which is an international tripartite body on which governments, employers and trade unions are represented, says that on occasions good economic performance is attributed to deregulation. But "good performance" is also sometimes due to sound regulation backed by social consensus. Such was the case, in the past, in Sweden and Japan.

"It also applies, today, to Ireland and the Netherlands, which employ highly centralised collective bargaining systems and currently display particularly enviable economic indicators."

The report says that most English-speaking countries have followed the US or UK model, where negotiations are concentrated at local level. It has been characterised by falling union membership, high levels of redundancies and social costs.

In the US 65 per cent of workers made redundant have had to accept lower-paid jobs subsequently. "Notwithstanding very low unemployment levels, opinion polls reveal a widespread feeling of job insecurity."