Wages Policy and Wage Determination in 1997

Abstract

hereafter IN&dquo;orkplace Relations Act) provided a new formal framework for wages policy and wage determination. It became the third change of this nature in five years. Despite the rhetoric, this is not the latest phase in the inevitable 'deregulation' of the Australian labour market. On the contrary, developments throughout the year confirmed the continuing relevance of Polanyi's famous dictum: laissezfaii-e has to be planned.' Like all 'deregulatory' projects (including those of the former Labor government) the new Act simply changed the form of regulation. This involved a realignment of the different elements of the Australian wages system: some are weakened (e.g. awards) while others are strengthened (e.g. management prerogative and individual employment contracts). This tendency was not, however, universal or uncontested. Awards remain the only source of wage movements for a third of Australian workers. In addition, many employers continued to bargain collectively with unions, in some cases on a multi-employer basis. Hence, while public policy promoted greater employer choice and individual agreements, a number of key players have adopted different approaches. Because of this, the practice of wage determination is far more complex and diverse than is commonly assumed among most politicians, policy makers and especially commentators in the financial press. This article begins with an overview of the economic context that prevailed in 1997, highlighting the importance of the ultra-low inflation environment that emerged during the year. Key developments at national and state level are then examined. The most significant of these concerned decisions about the role of awards in the wages system and the steady emergence of non-union agreements, both collective and individual. Tensions between the different types of wage determination were most apparent in the coal mining industry, where a number of intense and protracted disputes dragged on throughout the year. In addition, both the political and industrial wings of the labour movement unveiled new approaches to wages policy, shifting emphasis away from thehighly decentralised approach they had previously promoted. Developments in key industries are then analysed. These reveal that wage increases in enterprise agreements are not the only (or even the major) source of wage 1. K.

'Monday I'Ve Got Friday On My Mind': Working Time in the Hospitality Industry

“…The commission's decision signifies that, in the current climate of high unemployment, especially among those sections of the population from which many hospitality workers are drawn, the balance of power has swung strongly in the employers' favour. However, the determination was not an absolute defeat for hospitality workers; the notion of an award establishing standard conditions was not entirely abandoned (AIRC, 1997: 3, 38-9; SMH, 24 December 1997b; Buchanan et al, 1998: 100).…”