The substantial changes that are taking place ill the organization of
the UK public sector are transforming traditional patterns of industri
al relations based on centralized and institutionalized collective bar
gaining. Whether the trade unions can successfully respond to this pro
cess will be of prime importance for the future development of industr
ial relations in the public sector. The paper considers recent evidenc
e of the impact of decentralization on union organization in four hosp
ital units. The research findings suggest that there is a growth in un
ion activity as a result of the process of decentralization, but that
the effectiveness of unions is likely to vary considerably between hos
pitals.