The starting point for this article is the excellent article by Professor Marglin on the dangers of climate change. He outlines a broad remedial prescription, a new economics based on ecological concerns and a broadly based cultural revolution to change people’s thinking. We agree with Marglin that the prevailing neoclassical analysis is fundamentally flawed because inter alia it adheres to individuals’ independent (rather than inter-dependent) utility functions. It is argued that ultimately the problem of the ecosystem, and indeed violent threats of mass destruction that we constantly face cannot be solved without the insights that community and spiritual thinking bring us.

Governments’ economic policies need to be based on a coherent view of the role of innovation and productivity in sustaining growth. This article analyses advice on fostering innovation from Australia’s main statutory economics adviser, the Productivity Commission. It argues that the Productivity Commission’s comprehensive 2007 report, Public Support for Science and Innovation, contributed to a policy vacuum hampering government support for innovation for nearly a decade. First, within the Productivity Commission’s understanding of innovation was a contradiction between its required policy targeting criteria and the impossibility of meeting these criteria. Second, the resulting stance on innovation policy was at odds with research and theory on the drivers of innovation and hence growth – particularly innovation systems theories and those based on evolutionary economics. The ensuing innovation policy vacuum suggests that the Productivity Commission placed the abstract ideological ‘purity’ of neoclassical economic theory above empirical exploration of how government can best support Australia’s future economic development. Since late 2015, moves to fill this policy vacuum have included a Senate inquiry, a government department restructure, and the creation of a new Innovation and Science statutory advisory board. Whether these initiatives foster sustained innovation will depend on the extent to which they adopt approaches based on innovation systems or evolutionary economics, and transcend the static neoclassical mindset espoused by the Productivity Commission.

This paper examines the changes taking place in Australian industrial relations. It takes as its starting point the policy objective of improving workplace productivity and examines the impact of reforms on this objective using Lewin’s framework for the analysis of change and a mining operation as a case study. The paper suggests that the reforms are only facilitative and this exposes a reliance on management for the achievement of the policy objective. The dominance of managerial perspective changes the fundamental nature of the industrial relations system and raises several important policy considerations, in particular issues relating to the recognition of trade unions.

In the light of the financial consequences of longevity, the potential for widening living standards as the population ages, and the perception of an increased burden by the working age population, recent policy changes in New Zealand appear far from ideal. For nearly twenty years, the retirement system has comprised just a universal state pension, called New Zealand Superannuation, and voluntary unsubsidised private saving. The decision in the late 1980s to promote tax neutrality for saving was critical to attaining a cost-effective, adequate, equitable and sustainable retirement income for all in an uncertain future. Nevertheless, a level playing field was only partially achieved and by the early 2000s, large imbalances in the economy were apparent. Strident calls to promote saving gradually undermined the accord around tax neutrality for retirement saving leading in 2007 to the re-introduction of tax incentives for certain types of saving, and other types of state intervention in private provision. This paper examines how the twenty year experiment with tax neutrality is coming to an end and the implications this has for the support of an aging population experiencing increased longevity.

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.

The KEF developed its identity, role and activities in the face of challenges to employers quite different to those that marked the history of employer associations in western countries. Only in recent years have economic and political developments generated perceived threats from unions and pro-labour legislative proposals. Instead, the KEF had to find ways of attracting, holding and uniting members in the absence of these threats. The result was a very limited organisation operating at low levels. As those threats emerged more fully through Korea's democratisation process, the KEF responded to pressures to raise its profile, broaden its activities and sharpen its identity. In seeking to attract and retain members and to develop internal cohesion, macroeconomic and macro-political developments have been of crucial importance, as has the central role of large employers among the KEF membership.

This article examines trends in social disadvantage in Australia over the decade to 2018 using two approaches: a monetary approach using poverty and a living standards approach using deprivation. We compare the two approaches, highlight their implications and assess whether the evidence produced by each is consistent with trickle-down effects. The estimates allow for variations in thresholds, the treatment of housing costs and relative and absolute measures. The findings indicate an overall decline in poverty that is dependent on the treatment of housing costs and a more consistent decline in deprivation but with little or no improvement for many experiencing poverty or deprivation. Poverty and deprivation among unemployed households were above those for people in other labour force states throughout the period and while these differentials have narrowed, the findings suggest that trickle-down effects did not reach many of those highly disadvantaged or are subject to long delays.

A number of proposals for reducing unemployment in Australia focus on cuts or freezes in award wages. Typically, such proposals include (often vague) proposals to offset some of the distributional consequences by top-ups or other adjustments to the tax/transfer system. This paper examines the available options and concludes that, given the current structure of the social security system, there are serious obstacles to the most common ones such as the NIT or the EITC. There is a case for further reducing tax burdens on low wage earners, but options in this area tend to be very expensive and/or require targeting on a family needs basis

Since the Australian union movement’s representational peak in the mid 1970s, the industrial, economic and political landscape has considerably changed While the election of the Hawke Government in 1983 provided much cause for optimism among the union movement, the experience of the 1980s decade has proven to be cathartic. This paper examines the union movement’s response to the changes of 1980s; examines the development of the Accord and details the ongoing implementation of strategies for its restructuring.

This article compares the productivity and employment performance of the Australian and Irish economies over the 1990s, with particular emphasis on the different approaches to the role of information and communications technologies (ICT). Whereas Australia’s performance is characterised by the application and diffusion of ICT across a number of sectors, with indirect productivity and employment effects, Ireland has become a major producer of ICT products and services in its own right. The article traces the implications of these approaches for the pattern of growth and employment in both economies and also indicates their limitations. Ireland’s approach is limited by dependence on foreign investment, embodying externally generated technologies, though this is now being addressed by a policy interest in R&D support and the development of industry clusters and networks. On the other hand, Australia faces growing and possibly unsustainable deficits in its current account, driven by imports of knowledge-intensive goods and services, notwithstanding recent improvements in the terms of trade associated with higher prices for primary commodity exports.

Using an administrative dataset from the Ontario Ministry of Labour, we investigate three hypotheses about employment standards violations among franchised businesses: (1) franchisees have a higher probability of violating employment standards than other businesses, (2) franchisees have a higher probability of monetary/wage-related ES violations than other businesses, and (3) franchisees have a lower probability of repaying monetary/wage-related violations than other businesses. The results of our statistical models suggest that overall, franchisees are indeed more likely to violate ES, have a higher probability of monetary/wage-related violations, and are less likely to repay such violations. However, the results vary substantially by industry. While franchisees had only marginally higher probabilities of an ES violation in two of the seven industry-groups examined, five of the seven industries showed substantially higher probabilities of a monetary violation. The results also show that franchisees in three industry groups (retail, accommodation and food services, and education, public administration, healthcare and social services) are particularly prone to monetary violations.

This article charts and analyses the change path and various transformations of Malaysia’s state-owned enterprise, the Federal Land Development Agency, from its establishment in the 1960s to the present. The analysis supports arguments that the model of the developmental state, based on planned public/private cooperation, provides an alternative policy prescription to that of sole reliance on the self-regulating market. The Federal Land Development Agency is shown not only to have survived but also to have thrived as an economic development arm of the Malaysian state, successfully adapting to the changing environment in which it operates. To delineate the changes, a framework of punctuated equilibrium is utilised as it best captures the instances of rapid discontinuous change and the periods of incremental change and relative stability.

In investigating recent changes to the automotive industry production process, such as modularisation, our work emphasises the process of fragmentation of production as a configuring element of inter-firm power relationships, and as an explanatory element in working conditions. From a theoretical framework focused on power relations, we analyse by way of a selected case study how the capabilities of companies and their network positions, together with the agency of labour, shape the power relations that influence the evolution of working conditions. The study does indeed find relevant changes to inter-firm relationships, for example, within networks of assemblers and suppliers, but without a consequent re-balancing of power. This finding serves to explain differences in the evolution of working conditions between distinct companies, these conditions being fully functional to a strategy for profitability and thus difficult to reverse.

This article analyses the impact of the Great Recession and radical labour market deregulation on employer associations’ (EAs) membership levels and composition in Southern Europe. It also reviews the literature and advances it in four relevant aspects. First, it verifies a general decrease in membership of EAs in Southern Europe, almost to the point of collapse in Greece. Secondly, it identifies the greater importance of large companies (more than Fordist economic sectors) in the composition of this membership. Thirdly, it confirms that sectoral bargaining (as a major determinant) and union representation (an element weakened by reforms) are strong company-level incentives for membership in EAs. Finally, it re-examines the reasons put forward in the scholarly literature to explain why EAs in Southern Europe have not been in favour of these significant institutional changes.

When viewed against its ostensibly successful management of the global economic crisis between 2008 and 2013, growing electoral disenchantment with the Australian Labor Party government during that time defied standard explanations and calls for further analysis. A major reason for the party’s electoral loss in 2013 was arguably popular disappointment with its eschewal of social democratic principles. Notwithstanding some progressive measures initiated between 2008 and 2013, successive Australian Labor Party governments were constrained by neoliberal strictures, even when they chose to implement progressive policies. Whatever other reasons exist for its decline in popularity between 2007 and 2013, the Australian Labor Party’s unwillingness or inability to mark out a clear alternative to neoliberalism was fundamental. In making this case, this article uses the conceptual framework of ‘depoliticisation’, defined as the displacement of policy decisions from the sphere of democratic accountability and public debate, making them matters for regulation by technocratic experts operating according to supposed edicts of the market.

Are people receiving unemployment-related income support more likely to exit from income support if they live in a stronger labour market? This paper examines this question using data from the Australian Department of Family and Community Services Longitudinal Data Set (LDS). We find that, controlling for other observed characteristics, living in an area with a one percentage point lower unemployment rate is associated with a 5 per cent increase in the probability of exit. This implies a 9 per cent decrease in the mean duration of benefit receipt. This should be considered an upper bound for the impact of regional labour market characteristics as it partly reflects the fact that people with low skill levels can only afford to live in high unemployment regions. To control for unobserved characteristics (such as skill levels) that are constant over time we look at changes in income support among people who move location. This suggests a much lower, but still significant, impact of local labour market conditions on unemployment benefit receipt.

Australian industrial relations was a curious beast for much of the twentieth century. For many it was the institutional equivalent of a marsupial — native to the Australian environment. It developed in the economic and social circumstances of the nineteenth century. Indeed the development and elaboration of the arbitral model of Australian industrial relations was one of the major social experiments of a vibrant, young and successful Australia.

In the United States, as in other advanced industrial countries, worker participation in management has taken on increasing importance, placing pressures on employers and unions to change how they deal with employees/members, and with each other. This paper examines two of the most impressive cases in the U.S.: the partnerships between General Motors (G.M.) and the United Autoworkers union (U.A.W.) at Saturn and between BellSouth and the Communication Workers union (C.W.A.). We outline the evolution and the basic features of these innovations, as well as highlighting certain ongoing problems. These problems, we argue, confront the parties to employment relations in the U.S. more generally, reflecting profound ambivalence about such experiments, and their continued isolation as ‘islands of excellence’. As such, these cases both illustrate the vast potential for labor-management partnerships as well as the dampening effect of the employment relations context in the U.S.