Labour Markets Flashcards
What are labour market policies
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.
Why do governments intervene in labour markets
- 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
Who implemented the first single industrial relations act and what was it called
2005 Howard Government called Workplace Relations Amendment
What was Work Choices replaced by
Fair Work Act 2009(Commonwealth)
What were the major Fair Work act changes
- replaced 4300 federal awards with 122 modern award
- established a national system of occupational health and safety legislation
Who oversees the Fair Work act shit
Fair Work Commission
What are the minimum employment Standards
- Maximum weekly hours
- Flexible working arrangements
- Changing from casual to permanent (casual conversion)
- Parental leave and related entitlements
- Annual leave
- Other leave
- Community service leave
- Long service leave
- Public holidays
- Notice of termination and redundancy pay – based on the employee’s length of service:
- The Information Statements
Whats the current minimum Wage
IS $24.10, a 3.75% increase from 23.23 starting July 1
Why is low and high min wage bad
- 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
What is an award
A set of pay and conditions that apply to specific occupations and industries, set by the Fair Work Commission
Whats a flexibility clause
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
Whats an enterprise agreement
The most common method of wage determination, these are agreements negotiated collectively between employer and employees, usually through unions
What are the conditions of enterprise agreements
- offer pay rate above the award
- comply with employment standards
- pass the “Better off Overall Test” Which requires employees to be better off overall compared to the award
What are Common Law Contracts
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
Why do disputes occur
They occur when employer/ees take action to disrupt production process to highlight an issue
What are some forms of industrial disputes
strikes, work bans, lockouts
what are the main form of dispute resolution
conciliation, arbritrations
Whats conciliation
A process where an industrial tribunal tries to help the disputing parties to reach a mutual agreement
whats arbritration
a process where an industrial tribunal makes a ruling that resolves a dispute and is legally binding
differentiate between conciliation and arbritration
concilication doesnt impose a resolution unlike arbritration where its legally binding
When does the Fair Work Comission intervene
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.
what does decentralisation of the labour market reflect
reflects a shift from using nonmarket forces to a greater reliance on market forces to determine wage outcomes
centralised vs decentralised wage determination difference
centralised: determined by government or government appointed tribunal like FWC- awards
Decentralised: Decided by enterprise/workplace and tribunals have limited role
Arguments for decentralisation
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
Arguments against decentralisation
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
what are the Education, training and employment programs used
Job trainer, industry training hubs, quality schools package, jobmaker, childcare subsidies
Whats Job trainer
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
