The directors of different organizations have the power to dictate the strategies of a business, while the workers of these institutions have no such privileges. These innate privileges that permit the employers to supervise the employees are referred to as the managerial prerogatives. The powers are only left in the hands of the supervisors. Hence, every action of the supervisors practiced without the workers’ organization’s approval is conducted based on the morality prerogative. Due to these entitlements, the laborers cannot bargain with the employers regarding the terms and conditions of the job. Thus, trade unions rose to help the employees, whereby they help control such privileges.
Before 1990, most of the employees in Australia were working under the protective system of labor law. The plan was based on legislation and was mandated to resolve the disputes between the workers, the employers, and their organizations. The tribunals were also tasked with determining the salary, working durations, leaving working conditions, penalty rates, and facilities for the workers. Additionally, the system also determined the employment terms for contracts, part-time and casual laborers. Although the system was only meant to provide fair and equitable rates and a working environment for the employees, it led to the development of trade unions’ powers (Markey & Mclvor, 2019). Powerful employment unifications have been important in portraying the clear line between the degree of executive prerogative and the free work market.
The Acts passed by the Australian government after 1990 have brought various changes in the industrial relations system. These changes include legislative change, structural modifications, reduction in the trade unions’ power and members, and an increase in the non-permanent form of employment. Furthermore, there has been a change from the national industrial associations’ system to the decentralized system paying attention to enterprise bargaining and certification of the central non-union collective accord. Similarly, the changes minimized the powers of the Australian industrial commission, making it very easy for individuals to register for individual contracts.
In 2007, the government led by Rudd guaranteed fair and equitable work guidelines. The policies were termed the fair work Act 2009, and their main features were promotion and enforcement of the compliance with the new regulations (Markey & Mclvor, 2019). They primarily focused on the elimination of the Australian Work Agreement (AWA). However, the individual contracts were retained, and the formation of ten new employment laws for every worker was exercised. The provision of employee awards and the extension of the unfair dismissal that covered all the staff except those working in the small businesses was also guaranteed.
The unions and the workers were allowed to negotiate in good faith but not obliged to arrive at an accord. With the Fair Work Act, the employers and the workers were given fair working conditions if an agreement is not reached or when negotiations were not conducted in good faith. Correspondingly, the union officials were permitted to visit different workplaces to talk to the workers if they had both FWA work permits and adhered to the laws stipulated in the permit. The FAW act promoted “Better off Overall” employees, unlike before when the workers were under the award for an accord to be reached.
The formation of the conciliation and arbitration system in Australia has greatly encouraged the fast development of Australian mergers. The union density in 1990 was estimated to be high, while in 2007, it was low (Howe et al., 2018). While the union density has been declining steadily in the private sector, it has increased in the public sector. One of the major reasons for the deterioration in the union density in the private sector is the structural modification of the Australian economy (Howe et al., 2018). The budget change resulted from the contraction of the manufacturing sector, which was highly unionized with the fast development of the service industry which was weakly unionized.
The impact of the change was reduced permanent employment with the rapid growth of non-standard employment. Other economic modifiers were the rebellion against the unions by registered members, domestic union laws changes, and the elimination of the institutional planning, which were promoted by the federal structure of arbitration. Before the Howard Liberal government, the supreme way of settling salary disputes was through the accord, referred to as the Prices and Incomes Accord. Under the accord, the unions would agree not to add more wage bargaining claims, and in return, there would be an increment of the social wage and an amendment of the industrial laws. The commencement of the Howard government ended the Accord and replaced it with the Australian Fair Pay Commission (AFPC) in determining the salary laws. Currently, the wage panel is mandated with wage determination.
While Australia has experienced a decade of packed employment and work scarcity, there has been a rapid growth in unemployment. Furthermore, non-standard employment is rapidly increasing. However, with the Fair Work Act, the employees are allowed to have a flexible approach to work. The employers, in such cases, have no right to decline the workers’ requests (Howe et al., 2018). Since the Fair Work Act, of 2009 was passed, there have been strides made toward equal salaries for both males and females who work in similar or comparable workstations. The policy has minimized the salary disparity that stipulated high wages for men and low salaries for women.
After 1990, there was a duration of impactful change in the Australian Industrial associations, which introduced structural change, legislative modification, decreased union density, and a change from the centralized system to enterprise negotiations. Although these variations have impacted the workers, unions, government, and employers, there is an unending concern about the responsibility of the communal negotiation, trade unions, and other types of employee representations.
References
Howe, J., Berg, L., & Farbenblum, B. (2018). Unfair dismissal law and temporary migrant labour in Australia. Federal Law Review, 46(1), 19-48.
Markey, R., & Mclvor, J. (2019). Environmental bargaining in Australia. Journal of Industrial Relations, 61(1), 79-104.