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The Changing Australian Labour Market

The Changing Australian Labour Market. Trade Unions . What is a trade union ? Types Occupation based (Electrical trade union) Industry based (Finance Sector Union) General (Australian Worker Union) Enterprise (individual workplace). Trade Union membership has declined from 55%

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The Changing Australian Labour Market

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  1. The Changing Australian Labour Market

  2. Trade Unions What is a trade union? Types • Occupation based (Electrical trade union) • Industry based (Finance Sector Union) • General (Australian Worker Union) • Enterprise (individual workplace)

  3. Trade Union membership has declined from 55% of workforce to 19% over the last 40 years. Why? ACTU – Australian Council of Trade Unions is www.actu.asn.au- research one recent ACTU campaign

  4. Strong Unions have the power to bid up wages. They act as an institutional factor influencing how the labour market operates. This means the Labour market does not operate freely. Do higher wages always mean higher unemployment?

  5. Employer Associations • Business Council of Australia • Australian Camber of Commerce • National Farmers Federation • They act as a lobby groups • Provide advice to members • Represent employers before industrial courts

  6. Industrial Tribunals • AIRC (Australian Industrial Relations Commission) was replaced by Fair Work Australia • Arbitration • Conciliation • Award wages and conditions • National wage case • Enterprise agreements (BOOT) Better Off Overall Test

  7. What has happened? • Awards (industrial law) 17% • Enterprise Agreements (industrial law) 42% • Individual Contracts ( civil law) 37% • 10 National Employment Standards apply to everyone except self employed owners of incorporated businesses

  8. “Fair Work Australia” http://www.fwa.gov.au Discuss the main features of Fair Work Australia • Enterprise agreements • Minimum wages • Minimum standards • Awards • Conciliation and Arbitration

  9. Conclusions • Labour Market deregulaton has improved the efficiency and productivity of the economy and increased Australia’s international competitiveness. • The Labour market is more flexible and workers with enterprise agreements achieve wage increases based on productivity increases.

  10. Individual unions and individual employers are more important in most agreements. • Income inequality has increased because workers with enterprise agreements have achieved wage increases of about 4%/annum while safety net increases have only averaged 2%/ annum.

  11. Deregulation does not mean no regulation. The government has established the rules for wage increases– a decentralised system with a safety net of minimum wages and conditions.

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