Hostname: page-component-586b7cd67f-r5fsc Total loading time: 0 Render date: 2024-11-30T21:02:07.046Z Has data issue: false hasContentIssue false

The Economic Implications of Enterprise Bargaining

Published online by Cambridge University Press:  01 January 2023

Judith Sloan*
Affiliation:
National Institute of Labour Studies
Rights & Permissions [Opens in a new window]

Abstract

Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.

The economic implications of enterprise bargaining depend critically on the precise version of enterprise bargaining being contemplated. One version sees enterprise bargaining as an add-on process, with the existing bank of awards retained, and trade unions playing a central and protected role. Another version sees enterprise bargaining as an holistic process, wherein all terms and conditions of employment can be negotiated subject to some minimum conditions. Trade unions may play some role, but not to the exclusion of other bargaining agents. Add-on enterprise bargaining may have only a small impact on productivity; there is a danger that wage (and price) inflation could increase; and the impact on employment is uncertain. Holistic enterprise bargaining is likely to have a more substantial impact on productivity; is unlikely to lead to inflation; and employment growth should be boosted. However, power-reducing policies and the abolition of awards are necessary correlates of holistic enterprise bargaining.

Type
Research Article
Copyright
Copyright © The Author(s) 1993

Footnotes

*

The author would like to thank Mark Wooden for helpful comments. The article is based on a conference paper delivered at a Conference on Enterprise Bargaining organised by the Office of the Economic and Planning Council held in Canberra in October 1992.

References

Australian Bureau of Statistics (ABS) (various), The Labour Force Australia, Cat. No. 6203.0.Google Scholar
ABS (various), The Labour Force Australia, 1979 − 1989, Cat No. 6204.0.Google Scholar
ABS (various) Consumer Price Index, Cat. No. 6401.0.Google Scholar
ABS (various) Average Earnings and Hours of Employees Cat. No. 6401.0.Google Scholar
ABS (various), Average Weekly Earnings, Cat. No. 6350.0.Google Scholar
Borland, J., Chapman, B., Rimmer, M. (1990), “Microeconomic Reform in the Australian Labour Market”, Paperpresented at the Conference on Micro Economic Reform in Australia, Centre for Economic Policy Research, ANU, Canberra.Google Scholar
Calmfors, L., Driffill, J. (1988), “Centralisation of Wage Bargaining and Macro-economic Performance”, Economic Policy, 6, pp. 1361.CrossRefGoogle Scholar
Chapman, B. (1990), “The Labour Market”, in Grenville, S. (ed.), The Australian Macro-economy in the 1980s, The Reserve Bank of Australia, Sydney.Google Scholar
Chapman, B., Gruen, F. (1990), “An Analysis of the Australian Consensual Incomes Policy: The Prices and Incomes Accord”, Discussion Paper No. 221, Centre for Economic Policy Research, Australian National University.Google Scholar
Department of Industrial Relations (DIR) (1992), Workplace Bargaining: The First 100 Agreements, Report prepared by the Wages Policy Branch.Google Scholar
Dowrick, S. (1990), “Explaining the Labour Productivity Slowdown”, Australian Bulletin of Labour, 16(3), pp. 174198.Google Scholar
Frenkel, S., Shaw, M. (1989), “No Tears for the Second Tier: Productivity Bargaining in the Australian Metal Industry”, Australian Bulletin of Labour, 15(2), pp. 90111.Google Scholar
Harbridge, R., Rea, D. (1992), “Collective Bargaining and the Labour Market Flexibility Debate in New Zealand: A Review”, Economic and Labour Relations Review, 3(1), pp. 126153.Google Scholar
Harris, C. (1991), Enterprise bargaining: possible outcomes and policy issues, Working Paper No. 72, Bureau of Industry Economics, Canberra.Google Scholar
Higgins, H. B. (1922), A New Province of Law and Order, Workers’ Educational Association of New South Wales, Sydney.Google Scholar
Industrial Relations Commission (IRC) (1988), National Wage Case Decision, August 1988 (Print H4000).Google Scholar
Industrial Relations Commission (IRC) (1989), National Wage Case Decision, August 1989 (Print J9407).Google Scholar
Industrial Relations Commission (IRC) (1991), National Wage Case Decision, April 1991 (Print J7400).Google Scholar
Industrial Relations Commission (IRC) (1991), National Wage Case Decision, October 1991 (Print K0300).Google Scholar
James, C. (1992), “Lessons from the NZ Model”, The Australian, p. 20.Google Scholar
Layard, R., Nickell, S., Jackman, R. (1991), Unemployment: Macroeconomic Performance and the Labour Market, Oxford University Press.Google Scholar
McDonald, T., Rimmer, M. (1988), “Award Structure and the Second Tier”, Australian Bulletin of Labour, 14(3), pp. 469491.Google Scholar
Mitchell, W. F. (1992), “Wages Policy and Wage Determination in 1991”, Journal of Industrial Relations, 34(1), pp. 153161.Google Scholar
Nevile, J.W. (1992), “Fightback in Perspective: What Difference Would It Make?”, Economic and Labour Relations Review, 3(1), pp. 113.Google Scholar
Norris, K. (1986), “The Wage Structure: Does Arbitration Make Any Difference?”, Chapter in Niland, J. (ed.), Wage Fixation in Australia, Allen & Unwin, Australia.Google Scholar
Norris, K. (1989), “Wage Policy and Wage Determination in 1988”, Journal of Industrial Relations, 31(3).CrossRefGoogle Scholar
Plowman, D., Rimmer, M. (1992), “The Fruits of Abdication: Australian Multi-employer Award Respondency”, The Economic and Labour Relations Review, 3(1), pp. 153176.CrossRefGoogle Scholar
Reilly, S. (1989), “An Analysis of the Factors influencing the Second Tier and its Evolution”, Australian Bulletin of Labour, 15(3), pp. 200222.Google Scholar
Rimmer, M., Zappala, J. (1988), “Labour Market Flexibility and the Second Tier”, Australian Bulletin of Labour, 14(4), pp. 564591.Google Scholar
Sloan, J. (1992), “Until the End of Time: Labour Market Reform in Australia”, Australian Economic Review. 4'92.Google Scholar
Sloan, J., Wooden, M. (1990), “Trade Union Structure and Workplace Efficiency: An Agenda for Reform”, Australian Quarterly, 62, pp. 198206.CrossRefGoogle Scholar
Sloan, J., Wooden, M. (1990), “The Structural Efficiency Principle in Action Management Views” Australian Bulletin of Labour, 16(3),.pp. 199223.Google Scholar
Wooden, M. (1990), “Corporatism and Wage Setting”, Economic Papers, 9(2), pp. 5163.CrossRefGoogle Scholar