• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Report on Austrlian Workplace Relations

Extracts from this document...

Introduction

Contents Introduction Key Characteristics Impact on the Economy Recent Changes Conclusion Bibliography Appendix A Newspaper article Appendix B Magazine/Journal Article Appendix C Australian Government Website Material Appendix D Non-government Website Material Appendix E Book Excerpt Introduction Workplace relations play a very crucial role within the Economy of Australia. The IR or industrial relations system various laws and procedures have been established to organise workplace relations. Industrial relations concentrate on determining the process of setting wage levels and resolving conflicts within the labour market. This report will effectively display key characteristics, impacts and contemporary changes of Workplace Relations. Key Characteristics An important part of Workplace Relations is Wage setting. Industrial relations allow three ways to set the wage level of employees. Firstly the collective enterprise agreement Is a very consistent form of wage setting. These agreements are negotiated between employers and the employees. Secondly there are AWAs or awards which state the minimal standards that must be follow by employers. Lastly there are also individual contracts which are discussed and negotiated by the employer and the employee. These are classified as Common-law Contracts under the Workplace Agreements. The effectiveness and success of these wage determination systems greatly impacts on labour. Australia depends on a skilled labour force that is flexible to change and redeployment in the economy. ...read more.

Middle

to 2.5% p.a. This again supports the faster GDP growth of Australia to the United States. In Appendix A we see inflation is also vulnerable due to workplace relations. Essentially if the wage level increases from wage setting, spending will increase which would theoretically lead to higher inflation. This newspaper article from the Financial Review "Union Wage Claim Threat to Employers" discusses the important issue of rasing the minimal wage against then pressure of inflation. According to Peter Anderson (Australian Chamber of Commerce and Industries' director), "inflation had moderated and if the commission is inclined to award an increase, then it should be moderate and it should not apply within 12 months of the precious increase."4 However not all Australians are on AWAs. These graphs of Appendix D depict a comparison of some sorts between wage rates and inflation. These Wage price and CPI graphs in recent trends tend to fluctuate around the same quarters of growth. This is evidence of a link between the price of wages and inflationary pressures. However wages are not the only issue which affects inflation. Therefore the government must manage industrial relations to control the effects on inflation. 5 Recent Changes With the election of the Liberal Party there have been drastic changes to the Labour market. Due to the Liberals support of businesses in Australia many changes have been made to more directly benefit the employers and business owners in Australia. ...read more.

Conclusion

On the short-term, though, Work Choices looks at smoothing out the fluctuations of the business cycle especially by controlling key economic indictors such as inflation. One such way of doing this is through the AFPC. The Australian Fair Pay Commission (AFPC) sets and adjusts the minimal wages and casual loadings for employees. As seen in Appendix C, it is an independent, statutory body "established under the 'Workplace Relations Amendment (Work Choices) Act 2005' on the 14th December."9 This commission replaced the Australian Industrial Relations Commission (AIRC) Safety Net, though the AIRC still retains the role of dealing with employment disputes. The AIRC safety net did not immediately apply to all awards, first needing the confirmation of the trade unions before they were applied. The APFC on the other hand does not need this approval, and their decision is immediately effective across the board. Also with the AFPC, minimal pay can be set that would benefit the economy in general, looking at figures such as inflation and unemployment, rather than just benefiting the workers and looking at employee/employer relations. It is through the APFC that the government are trying to smooth out the fluctuations of the business cycle that were not addressed by the old system. Conclusion In conclusion it can be seen that Workplace Relations affect the economy as a whole. Workplace Relations is a contemporary issue which affects the relations between employers and employees as well as wage levels which have can effect on the Economy of Australian. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Macroeconomics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Macroeconomics essays

  1. Comparing the effects of immigration on GDP in Malaysia, Japan and South Africa.

    5.2 Malaysia Dependency Level on Foreign Workers Recently, a serious issue has been identified in Malaysia; it is heavy dependency on foreign labours. The foreign labour forces are from Indonesia, Bangladesh, Nepal, Myanmar, Vietnam and China. Total foreign workers rose from 4% of total employment in 1990 to about 10.7% in 1997 and 9% in 2001.

  2. Budget 2004-05 and Economic Analysis of Pakistan

    Order and Safety Affairs 12957 14048 15068 Economic Affairs 78163 54758 48767 Environment Protection 132 132 136 Housing and Community Amenities 821 926 832 Health Affairs & Services 2804 2809 3254 Recreational, Culture and Religion 2002 2003 2197 Education Affairs and Services 9645 9640 12214 Social Protection 535 737 539

  1. Unemployment Report.

    * The level of wage is partially determined by social norms. A company will look to maintain parity with other companies in the market as means of establishing a reputation of equity. Classical Unemployment (Real wage Unemployment): Since the classical model assumes that flexible wages and prices maintain the economy

  2. Outline any two main/priority issue that concern the Australian economy & discuss the effectiveness ...

    large part of the income debits that flow out on the current account. Thus, today's foreign debt adds to future CAD's. Because Australia finances a large proportion of its CAD by borrowing from overseas, this in turn ensures that Australia's foreign debt will continue to grow.

  1. Indian Economics

    agro-based industries like sugar mills and rice mills, in which production activities are seasonal in nature. So they offer employment for only a certain period of time in a year. People engaged in such type of work may remain unemployed during the off-season.

  2. Governments set economic objectives - Discuss the relative importance of each of these objectives ...

    Economic growth is increases in potential output of the economy and can occur if previously unemployed resources are employed, there are more resources or resources improve in quality. Increases in productive capacities are known as economic growth. As it is impossible to measure the productive capacity of an economy directly,

  1. Unemployment Issues in Germany

    Later, it was divided in two zones: German Federal Republic, with Bonn as capital, and German Democratic Republic, under Soviet influence. In 1961 the Berlin Wall was built symbolizing the end of free movement between East and West Germany. In the late 1980s reforms in neighboring Poland and the former

  2. How have the Rates of Inflation in the UK Changed Since the Monetary Policy ...

    Some may argue that this is a way of saying that inflation is less than it really is but in fact this is not the case. As interest payments just go directly to a bank and not directly into the community there is no reason why an increase in these

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work