Some of what you say Boffin may be right but on the matter of declining union membership its I think more about that the conditions that have been won over the years have established a standard for conditions that are taken for granted and therefore in many occupations they dont feel it necessary to belong to a union and incur the fees involved.
However, I am certain that if unions did not exist at all, the tune would change as employers would take advantage of individual workers, particularly during periods of recession. The net result would be as in past history many would flock back to unions. I think most people in Australia realise that the existence of some organised labor(unions) is a disincentive for employers to go overboard. Their campaign against work choices was certainly effective.