Labour Markets

Question 1

What are labour market policies

Answer 1

Government policies aimed at influencing the operation of the labour market, including industrial relation policies that monitor wage determination and dispute resolution processes. Furthermore, labour market policies include education and training programs to address the supply of labour market.

Question 2

Why do governments intervene in labour markets

Answer 2

• achieve macroeconomic objectives(low inflation)
• achieve microeconomic objectives such as productivity growth and improved competitiveness for Australian businesses
• Achieving objectives relating to distribution of income and wealth

Question 3

Who implemented the first single industrial relations act and what was it called

Answer 3

2005 Howard Government called Workplace Relations Amendment

Question 4

What was Work Choices replaced by

Answer 4

Fair Work Act 2009(Commonwealth)

Question 5

What were the major Fair Work act changes

Answer 5

• replaced 4300 federal awards with 122 modern award
• established a national system of occupational health and safety legislation

Question 6

Who oversees the Fair Work act shit

Answer 6

Fair Work Commission

Question 7

What are the minimum employment Standards

Answer 7

1. Maximum weekly hours
2. Flexible working arrangements
3. Changing from casual to permanent (casual conversion)
4. Parental leave and related entitlements
5. Annual leave
6. Other leave
7. Community service leave
8. Long service leave
9. Public holidays
10. Notice of termination and redundancy pay – based on the employee’s length of service:
11. The Information Statements

Question 8

Whats the current minimum Wage

Answer 8

IS $24.10, a 3.75% increase from 23.23 starting July 1

Question 9

Why is low and high min wage bad

Answer 9

• Low min wage increases result in diminished living standards for min wage workers
• High min wage will decrease the demand for labour, leading to higher unemployment

Question 10

What is an award

Answer 10

A set of pay and conditions that apply to specific occupations and industries, set by the Fair Work Commission

Question 11

Whats a flexibility clause

Answer 11

Modern awards now include a flexibility clause, which enables an individual employee and employer to vary the effect of an award to meet their individual needs without negotiating a separate agreement. Cant reduce tho

Question 12

Whats an enterprise agreement

Answer 12

The most common method of wage determination, these are agreements negotiated collectively between employer and employees, usually through unions

Question 13

What are the conditions of enterprise agreements

Answer 13

1. offer pay rate above the award
2. comply with employment standards
3. pass the “Better off Overall Test” Which requires employees to be better off overall compared to the award

Question 14

What are Common Law Contracts

Answer 14

When someone is earning above 167,500(2023), they are not subject to modern awards, meaning they are only covered by agreement with employer and NES(they don’t need the protection)

main difference to enterprise agreements is its individual not together

Question 15

Why do disputes occur

Answer 15

They occur when employer/ees take action to disrupt production process to highlight an issue

Question 16

What are some forms of industrial disputes

Answer 16

strikes, work bans, lockouts

Question 17

what are the main form of dispute resolution

Answer 17

conciliation, arbritrations

Question 18

Whats conciliation

Answer 18

A process where an industrial tribunal tries to help the disputing parties to reach a mutual agreement

Question 19

whats arbritration

Answer 19

a process where an industrial tribunal makes a ruling that resolves a dispute and is legally binding

Question 20

differentiate between conciliation and arbritration

Answer 20

concilication doesnt impose a resolution unlike arbritration where its legally binding

Question 21

When does the Fair Work Comission intervene

Answer 21

compulsory dispute settlement terms- all awards and agreements require a statement explaining the process parties will adopt if dispute
Bargaining in food faith- The obligations include participation, presenting relevant info, considering proposals, and acting morally
Resolving industrial action- The FWC is only able to step in to suspend or terminate such industrial action if special circumstances exist.

Question 22

what does decentralisation of the labour market reflect

Answer 22

reflects a shift from using nonmarket forces to a greater reliance on market forces to determine wage outcomes

Question 23

centralised vs decentralised wage determination difference

Answer 23

centralised: determined by government or government appointed tribunal like FWC- awards
Decentralised: Decided by enterprise/workplace and tribunals have limited role

Question 24

Arguments for decentralisation

Answer 24

efficient allocation of resources- more efficient firms make more to spend on labour, centralisation slows structural change down coz profitable industries will struggle to grow if they cant offer mad wages
productivity and reduced inflation- incentivises hard work
wage flexibility- helps economy adjust to negative shocks reducing unemployment

Question 25

Arguments against decentralisation

Answer 25

greater inequality- wage increases will reflect bargaining power rather than productivity improvements, worse workers will be fired/paid less so inequality increases
Wage-push inflation occurs coz employees will use bargaining power more, increasing wages

Question 26

what are the Education, training and employment programs used

Answer 26

Job trainer, industry training hubs, quality schools package, jobmaker, childcare subsidies

Question 27

Whats Job trainer

Answer 27

a $2.5billion scheme established in july 2020 aimed at creating jobs for school leavers or reskilled ppl.
Part 1 is subsiding half the wages for apprentices and trainees($28k) for businesses with 200> employees
2nd part is $1billion for low cost/free course places coz difficult job market coz covid