Lecture 1 – Introducing Industrial Relations Policy

The main question that this unit is asking is:

How does the state attempt to shape the regulation of work?

This is a period of major change in Australia. In 2009 and 2010, wholly new national labour laws came into effect under the Labor Government.

At the same time, millions of people turn up to work every day in varied settings, often with little idea about their rights and obligations. This situation leads to many questions as we answer our overall question:

  • How do questions about everyday work for employees, companies trying to survive and make a profit and government policy all interact?
  • What effects do policy changes have in workplaces?
  • Why do we argue about IR policy so much in Australia?

The extent of policy change in the last few years means that our overall question is a hard one to answer. This problem is made harder because there are lots of (competing) answers to it. Changes in the work people do and the organisations where they do it as well as in government policy need to be put into some kind of context. In turn this means that we have think about how government policy, the state itself and workplaces interact – and we need to examine what has brought us to where we are now.

The three theoretical perspectives (unitarism, pluralism, radicalism) underlying industrial relations dictate (in a broad sense) about what it is that the state does with regards to the employment relationship. ‘What does the state do in industrial relations?’

Some recent national policy history:

The Liberal-National Government and ‘Work Choices’

  • December 2005: laws passed by Parliament; most provisions operative from 27 March 2006.
  • November 2007: election won and lost on this issue (industrial relations was the deciding factor between winning and losing this election)

2007-271-softening-of-WorkChoices

The Labour Government and ‘Fair Work’

  • Some initial changes and then in March 2009, the Fair Work Act was passed.
  • A new collective bargaining system, based on ‘good faith bargaining’ began 1 July 2009.
  • This sits atop new minimum conditions for employees in the National Employment Standards (NES), legislated by the Parliament and Modern Awards providing industry or occupational minimum standards, effective 1 January 2010.

This is all very confusing from an employer’s perspective. Fair Work Act coming from Fair Work Australia. NES from the Parliament. Modern Awards which are industry/occupation specific.

Policy today:

Where we are now…

The ‘arbitration system’ of 1904 to 1996 is all but gone; the individual agreement system of 1996-2007 is all but gone.

We do have a new framework to regulate work but …

  • Uneven pressures from a global economy
  • Many employer complaints that the new laws are too union-friendly
  • Some union complaints that workers’ rights are still infringed
  • Some media coverage suggesting that wages are threatening economic welfare
  • Below the surface, important cases have been taken to tribunals about low-paid work and the gender pay gap

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