Labour Market Policies Flashcards
All contracts in Australia must meet…
The 11 National Minimum Employment Standards
AND
The minimum wage
Which of the following is NOT a National Employment Standard?
a) Minimum wage
b) Flexible work arrangements
c) Redundancy pay
d) Paid holiday leave
a) The minimum wage: it is seperate from the 11 NES
Which of the following is NOT a National Employment Standard?
a) Paid holiday leave
b) Flexible work arrangements
c) Redundancy pay
d) Paid parental leave
d) Parental leave does NOT have to be paid leave
Which of the following is NOT a National Employment Standard?
a) Flexible work arrangements
b) Minimum work hours
c) Redundancy pay
d) Paid holiday leave
b) There are MAXIMUM work hours, NOT minimum
What is an award?
The minimum pay and conditions for employees in a particular industry
How are awards determined?
They are set by the Fair Work Commission, and are at least as good as the 11 National Employment Standards
What is an enterprise agreement?
A contract negotiated between a firm (or multiple firms) and a group of employees
How are enterprise agreements determined?
They are negotiated between the firm, union and employees, and then must pass the BOOT
In what circumstances can an employee negotiate an individual contract?
If the individual is a high-income earner (above $158,000 per year)
OR
There is no relevant award
OR
The contract meets all award conditions and then offers additional benefits
An individual contract must meet or be better than…
the 11 National Employment Standards
An enterprise agreement must be…
better overall compared to the relevant award
What is labour market decentralisation?
A reduction in government control of employment contracts
What are 3 benefits of labour market decentralisation?
- Dynamic efficiency (labour will move to industries where labour is most demanded and wages are higher)
- Labour productivity (employees will work hard to get a raise)
- Avoids excessive inflation (because pay raises are constrained to specific workers and industries)
What is the main cost of labour market decentralisation?
- Wider inequality (because high-skilled workers receive pay raises)
To what extent has the Australian Government decentralised the labour market?
The labour market was highly centralised until the 1990s, but now has a balance between decentralisation and some government intervention as a safety net:
- In the 1990s the government introduced enterprise bargaining, and then some individual contracts.
- In the 2000s, the government introduced WorkChoices to substantially decentralise the labour market
- In 2009, the government introduced the Fair Work Act to reverse the most extreme aspects of WorkChoices