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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 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.
The Workplace Relations Act 1996 was an Australian law regarding workplace conditions and rights passed by the Howard government after it came into power in 1996. It replaced the previous Labor Government's Industrial Relations Act 1988 and Industrial Relations Reform Act 1993, and commenced operation on 1 January 1997.
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.
Employer Behavior: The stance of employers towards unions and collective bargaining can also impact coverage levels. Employers' attitudes towards unionization, their willingness to engage in collective bargaining, and their use of anti-union tactics can all influence the extent to which workers are covered by collective bargaining agreements.
The first step of the bargaining process is the identification of a target employer that is most likely to agree to a favourable employment contract. For the selected company, this provides an opportunity to influence the contract for the industry, while the downside is the risk of a labour disruption if negotiations stall or fail.