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Collective bargaining in Australia has its roots in the early 20th century, with the introduction of the conciliation and arbitration system. This system was established to resolve industrial disputes through the intervention of an independent third party, which could make legally binding decisions.
Unlike most wealthy OECD countries, Australia's collective bargaining system is largely confined to individual enterprises, rather than multi-employer bargaining. Combined with weak protections for union organising, this means that coverage of collective agreements was just 15% in 2022, [ 68 ] compared to coverages typically over 80% in ...
Enterprise bargaining is an Australian term for a form of collective bargaining, in which wages and working conditions are negotiated at the level of the individual organisations, as distinct from sectoral collective bargaining across whole industries. Once established, they are legally binding on employers and employees that are covered by the ...
Collective bargaining is a mechanism which allows employees, employers and representational parties to express their objectives with respect to work. [19] Such bargaining was at the centre of the Australian Labor Party's industrial relations policy.
Collective bargaining rights were enhanced, while an effective minimum wages system was sustained. By 1991, the lowest paid workers received additional increases through the mechanism of supplementary payments. It is arguable that most Australians were a little better off materially on the eve of the 1991 recession than in 1983.
In 2023, the ACTU and other big unions including the Health Services Union, and the Australian Manufacturing Workers' Union began a campaign calling for a levy to be imposed on non-union workers after the union was able to raise wages through collective bargaining. [12]
After the Howard Liberal government's 2004 election victory, and with a majority in the Senate from 1 July 2005, changes to industrial laws to further reduce the collective bargaining power of trade unions continued. In May 2005 the Howard government announced its Industrial Relations changes known as WorkChoices.
The union movement saw AWAs as an attempt to undermine the collective bargaining power of trade unions in the negotiation of pay and conditions of their members. Unions argued that the ordinary working person has little to no bargaining power by themselves to effectively negotiate an agreement with an employer, hence there is inherently unequal bargaining power for the contract.