tag:theconversation.com,2011:/id/topics/industrial-relations-702/articlesIndustrial relations – The Conversation2024-03-07T19:24:27Ztag:theconversation.com,2011:article/2249492024-03-07T19:24:27Z2024-03-07T19:24:27Z2024 could be the year the Fair Work umpire properly values women’s work – here’s how<p>This International Women’s Day, it is time to call on Australia’s workplace umpire, the Fair Work Commission, to finally close the gender pay gap.</p>
<p>Half a century after the commission’s predecessor granted women “equal pay for equal work” in a <a href="https://atui.org.au/2020/06/16/the-1969-equal-pay-case/">landmark case</a> in 1969, the gap remains between <a href="https://www.wgea.gov.au/data-statistics/ABS-gender-pay-gap-data">12% and 21%</a>.</p>
<p>Amendments to the Fair Work Act by the incoming Labor government in 2022 gave it new tools to close the gap by addressing the undervaluation of work in traditionally female-dominated occupations.</p>
<p>If it uses these tools to their full potential, 2024 will be a landmark year in the genuine achievement of equal pay for equal work. </p>
<h2>What we’ve been doing hasn’t much worked</h2>
<p>Traditionally in Australia, addressing gender-based undervaluation has relied on two approaches. </p>
<p>The first has been to argue the business case for gender equality – convincing employers they’ll be rewarded for “<a href="https://theconversation.com/now-youre-able-to-look-up-individual-companies-gender-pay-gaps-224167">doing the right thing</a>”. </p>
<p>The second has been to bring equal pay cases to tribunals. </p>
<p>Unfortunately, neither approach has been successful. In particular, pushing for equal remuneration through tribunals has been time-consuming and expensive.</p>
<p>These tribunals, historically working on models of male full-time wage earners, have <a href="https://law.uq.edu.au/files/5960/Pay-equity.pdf">struggled</a> to understand the undervaluation of work performed predominantly by women. </p>
<h2>The commission’s new tools</h2>
<p>The commission’s <a href="https://www8.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/fwa2009114/s3.html">act</a> has been rewritten to require it to </p>
<blockquote>
<p>promote job security and gender equality. </p>
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<p>It also has the power to make <a href="https://www8.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/fwa2009114/s302.html">equal remuneration orders</a> either on its own initiative or on application in order to bring about equal pay for work of equal or comparable value. </p>
<p>A further new development is the establishment of <a href="https://www.dewr.gov.au/secure-jobs-better-pay/resources/establishing-two-new-expert-panels-fair-work-commission">expert panels</a> to assist in gender-related cases. Advice from gender experts should assist in overcoming historical gender biases in commission decisions. </p>
<p>Perhaps the most promising tool is the change to the commission’s <a href="https://www8.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/fwa2009114/s134.html">modern awards objective</a>, which requires it to eliminate gender-based undervaluation of work and provide workplace conditions that facilitate women’s full economic participation each time it reviews an award.</p>
<p>Among other things, this requirement is likely to result in provisions that ensure part-time work is treated equally to full-time work and ensure a better balance between work and caring responsibilities.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/qantas-pays-women-37-less-telstra-and-bhp-20-fifty-years-after-equal-pay-laws-we-still-have-a-long-way-to-go-223870">QANTAS pays women 37% less, Telstra and BHP 20%. Fifty years after equal pay laws, we still have a long way to go</a>
</strong>
</em>
</p>
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<p>Amending awards is likely to be particularly important for women given that almost <a href="https://www.fwc.gov.au/documents/wage-reviews/2022-23/profile-of-employee-characteristics-across-modern-awards-2023-03-03.pdf">three in five</a> of the workers on awards are women. Men are mainly on negotiated agreements.</p>
<p>If the commission wanted to, it could hold a wide-ranging inquiry into the many factors that have contributed to gender-based undervaluation of women’s work. </p>
<p>It could also review entire industries and occupations that are female-dominated, upgrading multiple awards at the same time. This would avoid lengthy and costly reviews of individual awards.</p>
<h2>What’s likely in 2024</h2>
<p>The Fair Work Commission’s resolve to make lasting change will be tested by several matters currently before it. </p>
<p>The commission is due to issue its final decision in the case lodged by the Australian Nursing and Midwifery Federation, the Health Services Union, and the United Workers Union on the value of the work done by workers in <a href="https://www.fwc.gov.au/hearings-decisions/major-cases/4-yearly-review/awards-under-review/aged-care-award-review-am2014251">aged care</a>. </p>
<p>An initial <a href="https://www.fwc.gov.au/documents/sites/work-value-aged-care/decisions-statements/2022fwcfb200.pdf">interim decision </a> delivered in 2022 awarded some – but not all – of these workers a 15% increase, finding that work in feminised industries had been historically undervalued and the reason for that undervaluation is likely to be gender-based".</p>
<p>Workplace Relations Minister Tony Burke backed the decision, saying it was merely the “<a href="https://ministers.dewr.gov.au/burke/pay-rise-aged-care-workers">first step</a>”. </p>
<p>Another application, for nurses and midwives outside of aged care, was lodged by the Australian Nursing and Midwifery Federation in <a href="https://www.fwc.gov.au/hearings-decisions/major-cases/work-value-case-nurses-and-midwives">February this year</a>. </p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/itll-take-more-than-15-to-beat-the-stigmas-turning-people-off-aged-care-206670">It'll take more than 15% to beat the stigmas turning people off aged care</a>
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</em>
</p>
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<p>The commission has already started the process of grappling with gender-based undervaluation in modern awards, commissioning research that <a href="https://www.fwc.gov.au/documents/consultation/gender-based-occupational-segregation-report-2023-11-06.pdf">documents</a> the segregation of women and men into different occupations and industries.</p>
<p><a href="https://www.fwc.gov.au/documents/consultation/presidents-statement-stage-2-gender-pay-equity-2023-12-5.pdf">Further research</a> documenting the history of a select group of female-dominated modern awards and identifying the extent to which common elements indicate gender-based undervaluation, is due to be released in April. </p>
<p>It will feed into the <a href="https://www.fwc.gov.au/hearings-decisions/major-cases/annual-wage-reviews">annual wage review</a> due by the middle of the year.</p>
<h2>How to be bold</h2>
<p>Gender-based undervaluation of women’s work won’t be eradicated by incremental adjustments. </p>
<p>Here are three bold steps the commission could take: </p>
<ul>
<li><p>grant a minimum interim 12% increase (one estimate of Australia’s <a href="https://www.abs.gov.au/statistics/people/people-and-communities/gender-indicators">national gender pay gap</a>) across the board for female-dominated awards in this year’s annual wage review</p></li>
<li><p>develop new systems for classifying work and ascribing work value, breaking with the previous standards built around skills and qualifications in male dominated occupations </p></li>
<li><p>better consider the uneven bargaining power in industries such as nursing where governments fund care work and try to restrain costs.</p></li>
</ul>
<p>The changes to the Fair Work Act that allow <a href="https://www.fwc.gov.au/about-us/secure-jobs-better-pay-act-whats-changing/bargaining-support-6-june-2023/new-supported">multi-employer bargaining</a> are a start, but <a href="https://journals.sagepub.com/doi/full/10.1177/00221856231198880#bibr36-00221856231198880">unlikely alone</a> to correct the undervaluation of women’s work. </p>
<p>In female-dominated industries where collective bargaining is non-existent or ineffective, the commission should step in and further increase wages. </p>
<p>The Fair Work Commission has been given the tools. This should be the year it applies them.</p><img src="https://counter.theconversation.com/content/224949/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Lisa Heap is affiliated with the Centre for Future Work at the Australia Institute and is Secretary of the Association of Industrial Relations Academics Australia and New Zealand. </span></em></p>The Fair Work Commission has been given new tools. Among them is the power to eliminate gender-based undervaluation of work in entire awards and groups of awards.Lisa Heap, Doctoral Researcher RMIT University; Senior Researcher Centre for Future Work at the Australia Institute, RMIT UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2125412023-08-30T12:33:58Z2023-08-30T12:33:58ZGig economy workers set for new protections in Albanese government’s legislation introduced next week<figure><img src="https://images.theconversation.com/files/545462/original/file-20230830-27-ro8iwb.jpg?ixlib=rb-1.1.0&rect=20%2C10%2C3366%2C1990&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>A suite of protections for gig workers will be contained in legislation to be introduced into parliament by Workplace Relations Minister Tony Burke next week.</p>
<p>The government argues the changes balance protections with work flexibility. The new regime will begin from July 1. </p>
<p>The legislation, called the Closing Loopholes Bill, will also include measures on rights for casual workers, stopping wage theft, and preventing companies with enterprise agreements using labour hire to undercut wages. </p>
<p>Business has been campaigning strongly against the new round of industrial relations legislation. </p>
<p>Under the changes, the Fair Work Commission will set minimum standards for “employee-like workers” in the gig economy. These are people who work through a digital labour platform, notably in food delivery, ride share and the care economy. </p>
<p>Businesses will be able to apply to the commission for minimum standards orders tailored to the work performed under them.</p>
<p>The terms the commission will be able to consider for an order include payment, record keeping and insurance. But it would not set minimum standards on overtime rates, rostering, or terms that would change how a worker is engaged. </p>
<p>These workers will also be protected from being unfairly removed from digital labour platforms, and they will be able to ask the commission to resolve disputes. </p>
<p>The government says the changes will allow the commission to respond flexibly to these new, quickly evolving business models.</p>
<p>It stresses they will not affect independent contractors, such as skilled tradespeople, who have a high-degree of autonomy over their work.
Rather, they are aimed at protecting workers who are neither “employees” nor small businesses.</p>
<p>Gig workers are estimated to number in the hundreds of thousands. </p>
<p>Burke said at least 13 gig workers have died on the roads in the last few years..
“We know there is a direct link between low rate of pay and safety: it leads to a situation where workers take risks so they can get more work because they’re struggling to make ends meet,” he said.</p>
<p>“We can’t continue to have a situation where the 21st century technology of the gig platforms comes with 19th century conditions.</p>
<p>"At the moment if you’re classed as an employee you have a whole lot of rights such as sick leave, annual leave and minimum rates of pay. If not, all those rights fall off a cliff. What we want to do is turn the cliff into a ramp.</p>
<p>"We’re not trying to turn people into employees when they don’t want to be employees. But just because someone is working in the gig economy shouldn’t mean that they end up being paid less than they would if they’d been an employee.”</p><img src="https://counter.theconversation.com/content/212541/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>A suite of protections for gig workers will be contained in legislation to be introduced into parliament next week, and will also include measures on rights for casual workers and stopping wage theftMichelle Grattan, Professorial Fellow, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2113392023-08-10T19:59:50Z2023-08-10T19:59:50ZCan employers stop you working from home? Here’s what the law says<figure><img src="https://images.theconversation.com/files/542057/original/file-20230810-29-k9dewx.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C7940%2C3773&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Zoom, the videoconferencing company whose fortunes soared with the pandemic-driven shift to working from home, has <a href="https://www.theguardian.com/technology/2023/aug/07/zoom-tells-staff-to-come-into-the-office-at-least-two-days-a-week">reportedly</a> told its staff to get back to the office – for at least two days a week, if the commute is no more than 80 kilometres. </p>
<p>It’s part of a trend of employers winding back the work-from-home flexibility that enabled most to keep operating through the pandemic in 2020 and 2021.</p>
<p>In Australia, close to 90% of employers have implemented mandatory in-office days, according to <a href="https://www.roberthalf.com.au/press/87-australian-companies-have-implemented-mandatory-office-days-staff">a survey of 300 hiring managers</a> commissioned by recruitment agency Robert Half. The survey shows 19% insisting on five days a week, 28% on four days, and 26% on three days. Almost a third of respondents reported at least one employee quitting in response.</p>
<p>Particularly for parents and younger workers, working from home is not something they will readily give up. </p>
<p>Which raises the question: can an employer, having first directed you to work from home, now turn around and mandate you don’t?</p>
<p>In many cases, the short answer is yes – though some people have a stronger case to argue for flexible work – and correct procedures must be followed. </p>
<h2>Is it a ‘lawful and reasonable’ direction?</h2>
<p>Whether you are employed permanently, as a casual or on a short-term contract, you are required to follow “lawful and reasonable” directions from your employer. Even if this isn’t stated specifically anywhere, Australian courts have ruled this requirement is “implied” in every employment contract. </p>
<p>A direction to return to the workplace will be lawful and reasonable except in extreme cases – for example, where it is contrary to a government directive or another law. </p>
<p>If you can perform your role at home and have a legitimate reason to do so – such as an underlying health issue – you may have grounds to argue a directive to return to the office is not reasonable.</p>
<p>But a detailed and considered plan requiring employees to return to the workplace safely will be lawful and reasonable. Failing to comply with this direction may be a valid reason for disciplinary action, including dismissal. </p>
<h2>Is consultation required?</h2>
<p>If your work is covered by an award or enterprise agreement, you can collectively assert your right to be consulted, on the basis that a return-to-work order constitutes a “major workplace change”. </p>
<p>The Fair Work Ombudsman <a href="https://www.fairwork.gov.au/tools-and-resources/best-practice-guides/consultation-and-cooperation-in-the-workplace">says consultation</a> requires giving notice, discussing the proposed changes, providing written information and giving “prompt consideration” to any matters raised by employees and their representatives.</p>
<p>Even though the employer ultimately doesn’t need consent, the consultation still needs to be genuine and properly consider employees’ views, following the processes set down in the applicable award or agreement. </p>
<p>This is the issue in the dispute over the Commonwealth Bank of Australia directing employees to be in the office 50% of the time. The Finance Sector Union is challenging this in the <a href="https://www.theguardian.com/news/2023/jul/12/commonwealth-bank-wfh-office-rule-union-dispute-work-from-home">Fair Work Commission</a>, arguing the bank breached its obligation to consult. So even if the commission agrees, the policy won’t necessarily change.</p>
<h2>What about flexible work arrangements?</h2>
<p>If your award, enterprise agreement or employment contract contains “workplace flexibility” provisions, you may have rights to work from home or to make a request. </p>
<p>In addition, the national employment standards under the Fair Work Act give employees the right to request “flexible work arrangements” if they’ve been with the employer for at least 12 months, and: </p>
<ul>
<li>are a parent or carer of a child of school age or younger </li>
<li>a carer<br></li>
<li>have a disability </li>
<li>are at least 55 years of age<br></li>
<li>are pregnant </li>
<li>are experiencing family or domestic violence, or caring or supporting an immediate family or household member experiencing family or domestic violence.<br></li>
</ul>
<p>Casual employees have similar rights if they have been working regularly and systematically for at least 12 months and have a reasonable expectation of continued work on the same basis. </p>
<p>Employers who get a request for flexible working arrangements need to respond in writing <a href="https://www.fairwork.gov.au/employment-conditions/flexibility-in-the-workplace/flexible-working-arrangements">within 21 days</a>.</p>
<p>An employer can only refuse a request on “reasonable business grounds”, and where they have genuinely tried to agree to alternative arrangements to accommodate the employee’s circumstances, and have considered the consequences for any refusal. </p>
<p>Reasonable business grounds include such factors as the size and nature of the business. These include the request being too costly and having a significant adverse effect on efficiency, productivity or customer service. </p>
<p>As of June 6 2023, employees have had a right of appeal to the Fair Work Commission, which has new, more expansive powers to resolve such disputes by mediation or conciliation, or by making a recommendation, and, if required, by arbitration. </p>
<h2>Reasonable adjustments for employees</h2>
<p>The right of review for flexible work arrangement requests, though limited to certain employee categories, could well become a hotly contested area.</p>
<p>If an organisation mandates their workers return to the workplace – whether exclusively or in part – the employer needs to provide clear guidelines. The “humane way” to introduce such a policy (regardless of any legal requirement) is to consult with employees over the change. </p>
<p>If an employee seeks a flexible work arrangement, the employer needs to actively engage with them and give them opportunities to provide supporting evidence regarding any special circumstances. That way, they can accommodate employees – so far as is practicable – and if required, make reasonable adjustments. </p>
<p>In sectors with persistent labour shortages, employees will have more leverage to have their views heard and negotiate and, in some cases, even request a review.</p>
<p><em>* If you’re an employee <a href="https://www.fairwork.gov.au/employment-conditions/flexibility-in-the-workplace#ways-to-request-flexible-working-arrangements">wanting to request</a> flexible working arrangements, such as working from home, or an employer wondering <a href="https://www.fairwork.gov.au/employment-conditions/flexibility-in-the-workplace/flexible-working-arrangements">how to handle</a> such requests, you can read more at <a href="https://www.fairwork.gov.au/employment-conditions/flexibility-in-the-workplace">the Fair Work Ombudsman</a>.</em></p><img src="https://counter.theconversation.com/content/211339/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Giuseppe Carabetta does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>If an organisation mandates their workers return to the workplace – whether exclusively or in part – it needs to provide clear guidelines.Giuseppe Carabetta, Associate Professor, University of Technology SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2107792023-08-02T19:55:27Z2023-08-02T19:55:27ZB.C. labour dispute: It’s time for an industrial inquiry commission into ports and automation<figure><img src="https://images.theconversation.com/files/540889/original/file-20230802-19-98ffbc.JPG?ixlib=rb-1.1.0&rect=0%2C379%2C6120%2C3940&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Striking International Longshore and Warehouse Union Canada workers march to a rally as gantry cranes used to load and unload cargo containers from ships sit idle at port, in Vancouver, on July 6, 2023.</span> <span class="attribution"><span class="source">THE CANADIAN PRESS/Darryl Dyck</span></span></figcaption></figure><iframe style="width: 100%; height: 100px; border: none; position: relative; z-index: 1;" allowtransparency="" allow="clipboard-read; clipboard-write" src="https://narrations.ad-auris.com/widget/the-conversation-canada/bc-labour-dispute-its-time-for-an-industrial-inquiry-commission-into-ports-and-automation" width="100%" height="400"></iframe>
<p>A <a href="https://www.bcmeanegotiations.com/joint-ilwu-canada-and-bcmea-news-release/">new tentative agreement was reached</a> on July 30 between the two groups involved in a labour dispute affecting British Columbia ports with the help of the Industrial Relations Board.</p>
<p>At the beginning of July, about 7,400 port workers went on strike for 13 days <a href="https://www.cbc.ca/news/canada/british-columbia/bc-port-workers-resume-strike-1.6910572">over issues including automation</a>, outside contracting and the increasing cost of living.</p>
<p>This new deal — between the International Longshore and Warehouse Union Canada (ILWU) and the B.C. Maritime Employers Association — comes <a href="https://globalnews.ca/news/9866982/bc-port-strike-tentative-deal-oregan/">after union members rejected a previous deal on July 28</a>.</p>
<p>By initially rejecting the first contract, ILWU members implied that a generous wage and benefit package — which employers had agreed to pay — was not enough to address their concerns about potential job losses and workplace changes.</p>
<p>This isn’t a one-sided problem; under <a href="https://www.canada.ca/en/atlantic-canada-opportunities/services/researchstudies2.html">current workplace arrangements and labour market pressures</a>, port operators are unlikely to attract and retain workers with the skills required to implement the coming automation.</p>
<p>With the prospect that the <a href="https://thetyee.ca/News/2023/02/16/Union-Fears-Robots-Will-Kill-Jobs-Port-Expansion/">new container terminal at Roberts Bank port</a>, south of Vancouver, will be the first fully automated terminal in B.C., this issue is more important than ever.</p>
<h2>Canada Labour Code</h2>
<p>After the initial deal between the union and the employer’s association was rejected, Labour Minister Seamus O'Regan <a href="https://www.canada.ca/en/employment-social-development/news/2023/07/statement-by-minister-oregan0.html">asked the Canada Industrial Relations Board</a> whether a negotiated resolution was still possible, and to impose a new collective agreement or binding arbitration if it was not. </p>
<p>Despite <a href="https://globalnews.ca/news/9811240/alberta-minister-back-to-work-legislation-bc-port-strike/">many people demanding back-to-work legislation</a>, O'Regan followed the <a href="https://laws-lois.justice.gc.ca/eng/acts/l-2/">Canada Labour Code</a>, which encourages free collective bargaining and advocates for the constructive settlement of disputes.</p>
<p>In support of the idea that negotiated settlements are best, the code provides the minister with tools to prod, push or force parties in an industrial dispute to find a deal they can both live with.</p>
<figure class="align-center ">
<img alt="A Black man in a blazer and newsboy cap speaks to a crowd of people waving flags and holding signs that say ILWU CANADA" src="https://images.theconversation.com/files/540525/original/file-20230801-15-z5grx.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/540525/original/file-20230801-15-z5grx.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/540525/original/file-20230801-15-z5grx.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/540525/original/file-20230801-15-z5grx.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/540525/original/file-20230801-15-z5grx.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/540525/original/file-20230801-15-z5grx.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/540525/original/file-20230801-15-z5grx.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Willie Adams, International President of the International Longshore and Warehouse Union, speaks at a strike rally in Vancouver, on July 9, 2023.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Ethan Cairns</span></span>
</figcaption>
</figure>
<p>Drawing on my <a href="http://www.sfu.ca/%7Epvhall/#seaports_logistics_and_port_cities">research on B.C. ports</a>, I’d encourage the minister to make use of one more tool provided in the code: appoint an industrial inquiry commission on port skills and automation.</p>
<h2>Dockworkers and new technologies</h2>
<p>To understand the current dispute, we need to overturn <a href="https://press.princeton.edu/books/paperback/9780691170817/the-box">the myth that west coast unionized dockworkers</a> have refused to accept new cargo handling technologies.</p>
<p>Since the 1960s, ports on the west coast of North America have benefited enormously from mechanization and modernization agreements, <a href="https://www.bcmeanegotiations.com/wp-content/uploads/2022/11/Collective-Agreement-April-1-2018-to-March-31-2023.pdf">now enshrined in various collective agreements</a>. </p>
<p>In exchange for giving employers the freedom to implement technological changes — which often displace labour — employees secured a share of the resulting productivity gains in some form of compensation.</p>
<p>In the United States, this takes the form of a <a href="https://digicoll.lib.berkeley.edu/record/72012">minimum earnings guarantee</a>; in B.C. ports, full members <a href="https://summit.sfu.ca/_flysystem/fedora/sfu_migrate/3516/b14062914.pdf">receive a generous payout at retirement</a>.</p>
<p>But one result of a “jobs-for-income” agreement, in an industry where labour demand fluctuates, is a large pool of casual workers. As a result, <a href="https://www.bcmea.com/wp-content/uploads/2019/07/BCMEA_AR2018-Digital-v4FA.pdf">not everyone working in B.C. ports is a full union member</a>: roughly two-fifths are members, one-fifth are casuals with benefits and two-fifths are casuals without benefits.</p>
<p>The prospect of being a casual employee for several years is not particularly attractive, least of all to a tradesperson or computer programmer with employment options elsewhere. </p>
<h2>Commissions have helped before</h2>
<figure class="align-right ">
<img alt="Cargo cranes seen at a port" src="https://images.theconversation.com/files/540529/original/file-20230801-28-txabzn.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/540529/original/file-20230801-28-txabzn.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=795&fit=crop&dpr=1 600w, https://images.theconversation.com/files/540529/original/file-20230801-28-txabzn.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=795&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/540529/original/file-20230801-28-txabzn.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=795&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/540529/original/file-20230801-28-txabzn.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=999&fit=crop&dpr=1 754w, https://images.theconversation.com/files/540529/original/file-20230801-28-txabzn.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=999&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/540529/original/file-20230801-28-txabzn.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=999&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Gantry cranes used to load and unload cargo ships sit idle at port in Vancouver, B.C., on July 4, 2023.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Darryl Dyck</span></span>
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</figure>
<p>Industrial commissions have helped management and union find a path out of an impasse before — even if not everyone likes what they recommend. </p>
<p>One of the original clauses in the 1963 Mechanization and Modernization Agreement stated that Vancouver-bound containers had to be filled and emptied by ILWU members. </p>
<p>Against the wishes of many union members, the container clause was eliminated on the recommendation of the <a href="https://www.worldcat.org/title/978222691">1987 Weiler Commission</a> and <a href="https://ilwu500.org/wp-content/uploads/2013/11/Gainshare.pdf">replaced by a pension funding arrangement</a> to ensure ILWU members shared the resulting gains.</p>
<p>The <a href="https://www.worldcat.org/title/in-the-matter-of-the-canada-labour-code-part-i-industrial-relations-report-of-the-industrial-inquiry-commission-into-industrial-relations-at-west-coast-ports/oclc/461336129?page=citation">1995 Jamieson and Greyell Commission</a> strongly rejected the notion that port workers be denied the right to strike — as requested by some agricultural and business interests — but it did recommend the 72-hour strike/lockout notification period now included in the Canada Labour Code.</p>
<h2>Industrial inquiry commission</h2>
<p>A commission on port automation can share information, promote understanding and make recommendations. It would examine trends in <a href="https://www.itf-oecd.org/container-port-automation-impacts-and-implications">container terminal automation</a>, as well as technology trends in non-containerized and commodity-exporting terminals.</p>
<p>It can determine the nature and extent of the skills shortage in B.C. ports and look into the adequacy of existing recruitment, retention and training systems. And it can learn from the experiences of port workers, especially casual workers and skilled tradespersons.</p>
<p>We need a new agreement between employers and employees in the B.C. ports that will allow both sides to continue to enjoy the benefits of new workplace technologies. </p>
<p>Employers will only benefit from automation if they can train, recruit for and retain the new skills that will be required. Employees will only support automation if they see a future for themselves, their families and communities in the industry. </p>
<p>An industrial inquiry commission might help tackle this challenge.</p><img src="https://counter.theconversation.com/content/210779/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Peter Hall receives funding from the Social Sciences and Humanities Research Council of Canada, including funding to support research partnerships that involve the port union (<a href="http://www.sfu.ca/waterfront.html">http://www.sfu.ca/waterfront.html</a>) and shipping industry (<a href="https://greenshippingproject.com/">https://greenshippingproject.com/</a>).</span></em></p>We need a new agreement between employers and employees in the B.C. ports that will allow both sides to enjoy the benefits of new workplace technologies.Peter Hall, Professor of Urban Studies, Simon Fraser UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2105472023-07-27T04:14:00Z2023-07-27T04:14:00ZPolitics with Michelle Grattan: ACCI Head Andrew McKellar on industrial relations and boosting Australia’s productivity<p>Australia’s inflation moderated somewhat this week. But in economic terms, there will be more tough months ahead for households and for businesses.</p>
<p>Meanwhile, the relationship between business and the Albanese government is somewhat scratchy. From the point of view of business, the Government is delivering to the unions. Business is particularly critical of the Government’s industrial relations changes those already made and those to come.</p>
<p>In this weeks podcast, our guest is Andrew McKellar, the chief executive of the Australian Chamber of Commerce and Industry (ACCI). He joins us to give a business take on the economy, issues concerning business and relations with the Albanese Government.</p>
<p>ACCI describes itself as Australia’s largest and most representative business network, saying it covers businesses “of all shapes and sizes”.</p>
<p>With the news that Australia is finally seeing inflation fall, McKellar believes that further interest rate rises could do more harm to the economy than good. </p>
<blockquote>
<p>it’s not clear that further interest rate increases at this point in time are really going to help. In fact, they could risk going the other way. </p>
</blockquote>
<p>This week workplace relations minister Tony Burke announced new changes to casual employment laws, to make it easier for casuals to become permanent employees. Business has reacted sharply. McKellar says:</p>
<blockquote>
<p>Firstly, there is already a pathway for conversion from casual to permanent employment, if that’s what suits the employee and what suits the business. We think there is an issue around the change in the test to that, and particularly the uncertainty that that can create for smaller businesses. </p>
<p>So whether it be on labour hire, service, contracting, the ability for companies, for employers to engage labour in those circumstances […] There’s a broad range of concerns that business has and we’re obviously trying to work through those issues with government behind the scenes.</p>
</blockquote>
<p>Treasurer Jim Chalmers announced the new head of the Productivity Commission this week, appointing Chris Barrett from the Victorian Department of Finance and Treasury to the role. Australia’s productivity growth per annum is at its worst in 60 years, and McKellar believes Barrett has a mammoth task ahead of him: </p>
<blockquote>
<p>I think we’ve seen a period where there hasn’t been a strong reform agenda. This government has to make a choice. It can make a difference. When you look back at some of the positive things that have been done by governments of either persuasion in the past, whether it be Hawke and Keating, whether it be Howard and Costello, then I think having that strong impartial advice, looking at taking on some of those challenges, making some unpopular decisions at times, but trying to build a consensus around what will drive productivity growth [and] that’s sorely needed in Australian public policy.</p>
</blockquote>
<p>With the sweeping industrial relations changes being implemented by the government, McKellar says business, big and small, needs to be measured: </p>
<blockquote>
<p>We don’t want to diminish our credibility as business advocates by ‘overegging the omelette’ - and we’ve got to be careful on that point.</p>
<p>But where we see risks and where we see things that are taking us potentially in the wrong direction on policy, then I think it’s quite legitimate to have that debate in a pretty robust way, and I don’t think anyone’s shying away from that.</p>
</blockquote><img src="https://counter.theconversation.com/content/210547/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>In this podcast, our guest is Andrew McKellar, CEO of the Australian Chamber of Commerce and Industry. He joins us to give a business take on the economy and relations with the Albanese GovernmentMichelle Grattan, Professorial Fellow, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2102722023-07-25T01:44:01Z2023-07-25T01:44:01ZEmployers will resist, but the changes for casual workers are about accepting reality<figure><img src="https://images.theconversation.com/files/538890/original/file-20230724-19-sj2thq.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C6338%2C3216&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Mick Tsikas/AAP</span></span></figcaption></figure><p>The Albanese government’s plan to improve the pathway to permanency for casual workers has employers worried, fearful their ability to employ casual workers will be restricted. </p>
<p>Even before the details had been released, there was certainty, in <a href="https://www.theaustralian.com.au/commentary/why-changes-to-casual-work-rules-risk-our-economy/news-story/c86c779d0bad8a5e5fc72b43bd8a41e7">the words</a> of Australian Industry Group chief executive Innes Willox, that there “is simply no justification for further changes to the regulation of casual work”. </p>
<p>In support of this argument are statistics suggesting the casualisation trend has peaked. But that’s by no means certain: the most recent data from the Australian Bureau of Statistics shows casualisation climbing again, with an overall rate of 23.5%.</p>
<hr>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/539144/original/file-20230725-21-it5mvb.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/539144/original/file-20230725-21-it5mvb.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=406&fit=crop&dpr=1 600w, https://images.theconversation.com/files/539144/original/file-20230725-21-it5mvb.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=406&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/539144/original/file-20230725-21-it5mvb.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=406&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/539144/original/file-20230725-21-it5mvb.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=511&fit=crop&dpr=1 754w, https://images.theconversation.com/files/539144/original/file-20230725-21-it5mvb.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=511&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/539144/original/file-20230725-21-it5mvb.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=511&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption"></span>
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<hr>
<p>The counterargument is that entrenched casualisation doesn’t make the status quo right, and that the government’s proposed reforms will give greater recognition to reality. That is, if a worker is effectively working as a permanent employee, they have the right to be treated as such.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/albanese-government-to-make-it-easier-for-casuals-to-become-permanent-employees-210259">Albanese government to make it easier for casuals to become permanent employees</a>
</strong>
</em>
</p>
<hr>
<h2>Rise of the ‘permanent casual’</h2>
<p>While casual employment can often suit both employer and employee, the evidence does suggest some employers have exploited the legal ambiguities around definitions and obligations. </p>
<p>Australia’s National Employment Standards – the minimum safety net for all workers – say a casual employee who has worked for their employer for 12 months <a href="https://www.fairwork.gov.au/starting-employment/types-of-employees/casual-employees/becoming-a-permanent-employee">must be offered the option</a> to convert to full-time or part-time (permanent) employment. But there are significant exemptions, particularly for small business.</p>
<p>Close to 60% of Australia’s casual workers have been with their employer <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_departments/Parliamentary_Library/pubs/rp/rp2122/TrendsCasualEmployment">for more than a year</a>, and 45% to 60% report <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_departments/Parliamentary_Library/pubs/rp/rp2122/TrendsCasualEmployment">regular hours and pay</a>. This has resulted in the great Australian oxymoron of “the permanent casual”. </p>
<p>There is effectively a class of workers who don’t get holiday and sick pay, no matter how long or regularly they work, simply because their employer deemed them “casual” when they began.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/the-truth-about-much-casual-work-its-really-about-permanent-insecurity-151687">The truth about much 'casual' work: it's really about permanent insecurity</a>
</strong>
</em>
</p>
<hr>
<h2>The legal landscape</h2>
<p>Since the 1990s, workers and their union representatives have challenged these contrivances in industrial tribunals. Several of these decisions have been tested on appeal in the Federal Court.</p>
<p>In two cases in <a href="https://www.lexisnexis.com.au/en/insights-and-analysis/practice-intelligence/2020/workpac-v-rossato-the-death-of-the-long-term-casual">2018 and 2020</a>, the Federal Court agreed a worker’s employment status should based on the reality of their long-term employment relationship. That is, if there was continuity, based on extended, regular patterns of employment, a worker was a permanent employee. Similar principles applied to those deemed contractors. </p>
<p>However, appeals to the High Court <a href="https://www.corrs.com.au/insights/rossato-high-court-clears-the-air">in 2021</a> and <a href="https://www.minterellison.com/articles/high-court-clarifies-test-for-determining-employee-or-independent-contractor">in 2022</a> overturned these rulings. For the High Court, a formal stipulation of relations written in a contract were all that counted. The reality of life on the job was irrelevant. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/what-defines-casual-work-federal-court-ruling-highlights-a-fundamental-flaw-in-australian-labour-law-139113">What defines casual work? Federal Court ruling highlights a fundamental flaw in Australian labour law</a>
</strong>
</em>
</p>
<hr>
<h2>Common law versus parliament</h2>
<p>The High Court’s decisions – that formal freedom of contract has to be respected irrespective of the realities of bargaining power – reflect a long struggle between the common law and parliament in matters concerning working life.</p>
<p>In the 1700s and 1800s, workers were jailed for meeting to discuss wage campaigns. To this day, commercial common law considers the principle of “freedom of contract” as the foundation for all commercial relations – including those involving employment. Union activity is an illegal restraint of trade.</p>
<p>These principles have never been changed in the courts. It is only by statute (legislation passed by parliament) that trade unions and collective action by workers has been allowed. </p>
<p>The federal Employment and Workplace Relations Minister, Tony Burke, <a href="https://ministers.dewr.gov.au/burke/standing-casual-workers">says</a> the government “will legislate a fair, objective definition to determine when an employee can be classified as casual”, and no one will lose their casual status if that is their preference. </p>
<p>There will, no doubt, be opposition, with warnings about threats to productivity and suggestions economic conditions are too fragile.</p>
<p>But there’s a lot to be said in favour of giving greater recognition to reality.</p><img src="https://counter.theconversation.com/content/210272/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>John Buchanan has been an applied researcher in the university sector for more than 30 years. During this time he has undertaken applied research projects for governments of all persuasions, unions, NGOs and employers. His most recent projects have been for the NSW government, its workers' compensation authority (iCare) and the Queensland Nurses and Midwives Union. He is a member of the National Tertiary Education Union. From June 2021 until June 2023 he was a member of the NTEU bargaining team that settled the University of Sydney Enterprise Agreement. A key feature of that agreement concerns reducing casual academic employment by 20% and increasing the number of full time, continuing roles by 330 positions over the period 2023 to 2026. </span></em></p>There is effectively a class of Australian workers who don’t get holiday and sick pay, no matter how long or regularly they work, simply because their employer deemed them “casual” when they began.John Buchanan, Professor, Discipline of Business Information Systems, University of Sydney Business School, University of SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2092102023-07-20T20:04:41Z2023-07-20T20:04:41ZManipulative, distrustful, self-serving: how to deal with a Machiavellian boss<figure><img src="https://images.theconversation.com/files/535948/original/file-20230706-23-jlmh7v.jpg?ixlib=rb-1.1.0&rect=7%2C799%2C5168%2C2646&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>You’ve been pressured to work overtime to finish a project. You won’t get paid for the extra hours but you’ve been assured there will be kudos from senior management. There is – but only for your boss, who takes the credit.</p>
<p>You’re a hard, efficient worker, but your manager closely monitors you, demanding you constantly account for your time and questioning your actions, as if you can’t be trusted. </p>
<p>You find out your boss is overclaiming on expenses. When you bring this to their attention, they ask you not tell anyone until they work it out. They then mention they’re considering recommending you for a promotion. </p>
<p>These are signs of Machiavellianism, the dark personality trait named after the 16th century Italian political theorist who wrote the first “how to” guide for rulers.</p>
<p>A <a href="https://www.sciencedirect.com/book/9780121744502/studies-in-machiavellianism">Machiavellian</a> personality is self-serving, opportunistic and ambitious – traits that can help them attain positions of power and status. </p>
<p>Estimates of the prevalence of Machiavellianism are imprecise, but experts have good reason to believe it is at least as common in the workplace as psychopathy, which affects about 1% of the population but an estimated <a href="https://www.forbes.com/sites/stephaniesarkis/2019/10/27/senior-executives-are-more-likely-to-be-psychopaths/?sh=5e35d14d47c4">3.5% of executives</a>. </p>
<p>For example, US business author Lewis Schiff says 90% of the millionaires he surveyed for his book <a href="https://www.linkedin.com/pulse/20140501124102-3943659-are-you-machiavellian-here-s-how-and-why-to-find-out/">Business Brilliant: Surprising Lessons from the Greatest Self-Made Business Icons</a> agreed with the statement “it’s important in negotiations to exploit the weaknesses in others”, compared with just 24% of those with “middle-class” incomes. </p>
<p>Working for a Machiavellian boss is likely to be infuriating, stressful and bad for your mental health. By understanding what drives this personality, and how it differs from the other “dark personality traits”, you can limit the fallout. </p>
<h2>Origins of Machiavellianism</h2>
<p>Niccolo Machiavelli (1469–1527) was a diplomat in Florence during a period of power struggle involving the powerful <a href="https://books.google.com.au/books/about/The_Prince.html?id=QQjt-rv_0jEC&redir_esc=y">Medici</a> family. When the Medicis returned to rule the city in 1512 after almost two decades in exile, he was briefly imprisoned and then banished. He then wrote <em>Il Principe</em> (The Prince) as a sort of job application.</p>
<figure class="align-right ">
<img alt="A statue of Niccolo Machiavelli at the Uffizi art gallery in Florence." src="https://images.theconversation.com/files/538168/original/file-20230719-16-wx31ga.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/538168/original/file-20230719-16-wx31ga.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=800&fit=crop&dpr=1 600w, https://images.theconversation.com/files/538168/original/file-20230719-16-wx31ga.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=800&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/538168/original/file-20230719-16-wx31ga.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=800&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/538168/original/file-20230719-16-wx31ga.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1005&fit=crop&dpr=1 754w, https://images.theconversation.com/files/538168/original/file-20230719-16-wx31ga.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1005&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/538168/original/file-20230719-16-wx31ga.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1005&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">A statue of Niccolo Machiavelli at the Uffizi art gallery in Florence.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
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<p>The book (not formally published till 1532, though copies circulated in the two decades before) is regarded as the first work of modern political philosophy. It advises rulers to be pragmatic, cunning and strategic. “The <a href="https://books.google.com.au/books/about/The_Prince.html?id=QQjt-rv_0jEC&redir_esc=y">lion cannot protect</a> himself from traps,” it says, “and the fox cannot defend himself from wolves. One must therefore be a fox to recognise traps and a lion to frighten wolves.”</p>
<p>In 1970 two US psychologists, Richard Christie and Florence Geis, published <a href="https://www.sciencedirect.com/book/9780121744502/studies-in-machiavellianism">Studies in Machaivellianism</a>, using the term for a personality trait characterised by self-interest, manipulativeness, opportunism and deceitfulness.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/these-are-the-characteristics-of-people-most-likely-to-cut-corners-at-work-69630">These are the characteristics of people most likely to cut corners at work</a>
</strong>
</em>
</p>
<hr>
<h2>Joining the ‘Dark Triad’</h2>
<p>Machiavellianism is now accepted as one of three antisocial personality types that comprise the “Dark Triad” – the other two being narcissism and psychopathy. However, while the three traits are lumped together due to their antisocial qualities, there are important differences.</p>
<hr>
<figure class="align-center ">
<img alt="Dark Triad traits" src="https://images.theconversation.com/files/536752/original/file-20230711-21-fgafa9.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/536752/original/file-20230711-21-fgafa9.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=509&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536752/original/file-20230711-21-fgafa9.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=509&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536752/original/file-20230711-21-fgafa9.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=509&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536752/original/file-20230711-21-fgafa9.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=640&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536752/original/file-20230711-21-fgafa9.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=640&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536752/original/file-20230711-21-fgafa9.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=640&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="attribution"><a class="source" href="https://commons.wikimedia.org/wiki/File:The_Dark_Triad_Traits.svg">Wikimedia Commons</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
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<p>Narcissism is <a href="https://theconversation.com/how-many-types-of-narcissist-are-there-a-psychology-expert-sets-the-record-straight-207610">a set of traits</a> as well as a personality disorder, characterised by egoism, self-absorption and the need to feel superior to others. Psychopathy is also a diagnosable <a href="https://www.sciencedirect.com/topics/neuroscience/psychopathy">personality disorder</a>, defined by lack of empathy or conscience. Machiavellianism is not classified as a formal personality disorder. </p>
<p>A Machiavellian personality can be charismatic, like a narcissist, but is driven by self-interest rather than self-aggrandisement. They tend to be calculating rather than impulsive like a psychopath.</p>
<p>Christie and Geis came up with a <a href="https://openpsychometrics.org/tests/MACH-IV/1.php">20-question checklist</a>, based on statements from Machiavelli’s writings, to gauge Machiavellian traits. This test, known as the MACH-IV, is still being used. </p>
<p>Data collected on <a href="https://openpsychometrics.org/tests/MACH-IV/demographic-correlations-and-statistics/">those taking the test</a> shows, on average, that men score higher than women, and are more likely to get the highest possible result (~1% compared with ~0.2%).</p>
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<figure class="align-center ">
<img alt="Gender differences in results from the MACH-IV test of Machivellianism collected by the Open Source Psychometrics Project." src="https://images.theconversation.com/files/538179/original/file-20230719-17-ek02my.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/538179/original/file-20230719-17-ek02my.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=275&fit=crop&dpr=1 600w, https://images.theconversation.com/files/538179/original/file-20230719-17-ek02my.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=275&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/538179/original/file-20230719-17-ek02my.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=275&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/538179/original/file-20230719-17-ek02my.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=346&fit=crop&dpr=1 754w, https://images.theconversation.com/files/538179/original/file-20230719-17-ek02my.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=346&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/538179/original/file-20230719-17-ek02my.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=346&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption"></span>
<span class="attribution"><a class="source" href="https://openpsychometrics.org/tests/MACH-IV/demographic-correlations-and-statistics/">Open Source Psychometrics Project</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
</figcaption>
</figure>
<hr>
<p>A score of 60 or more out of 100 on the test is deemed “high Machiavellianism”, and less than 60 as “low Machiavellianism”. </p>
<p>A “<a href="https://www.jstor.org/stable/pdf/25072196.pdf?casa_token=oCgOQPJhV28AAAAA:j-ws7wcGMhUJvY2f6j6ZPuB9fbNU1M5B-NZRqxVtOi_uSkCECPjw7YbGQhZMSt-JM_5Xd7thq2BYehh4upAC9W_vM9Ax-dPOQwZMNzja2I2OHBJQDW1xjg">high Mach</a>” will likely be highly manipulative, in ways you won’t even necessarily identify as manipulation at the the time. A “low Mach” will tend be more empathetic and more reluctant to exploit others. </p>
<p>But knowing which is which in real life isn’t so straightforward. “Everyone sees what you appear to be, few experience what you really are,” as Machiavelli writes in <a href="https://www.online-literature.com/machiavelli/prince/18/">The Prince</a>. It is important to remember this even when approaching “low Mach” individuals. The boss who assures you they have your best interests at heart might just be telling you what you want to believe.</p>
<h2>How to deal with a Machiavellian boss</h2>
<p>A Machiavellian boss may seek to <a href="https://link.springer.com/article/10.1007/s10551-016-3251-2">manipulate</a>
with flattery or bullying, promising reward or threatening punishment.
They are less likely to <a href="https://journals.sagepub.com/doi/pdf/10.1177/0149206308318618?casa_token=N6XgvYGyA3kAAAAA:NHo94KaplKtCS74Cf9rLojyAswkwBWtT6KICWQTiRdEZ5ZRhAHdSxfGfkDI-HA8g2-nuMwDa-Hz4x4k">trust you</a>, causing them to micromanage and criticise. Your feelings <a href="https://www.researchgate.net/profile/Amos-Drory/publication/232510451_Machiavellianism_and_leadership/links/552b9b410cf21acb091e4c31/Machiavellianism-and-leadership.pdf">are of little concern</a>. This experience can leave you <a href="https://link.springer.com/article/10.1007/s10551-022-05233-8#Sec20">angry</a>, <a href="https://www.emerald.com/insight/content/doi/10.1108/LODJ-06-2018-0232/full/html?utm_campaign=Emerald_HR_PPV_November22_RoN">emotionally exhausted</a> and cynical. </p>
<p>So how to deal with a Machiavellian boss?</p>
<p>The first lesson is to be clear about what drives a Machiavellian personality. Fundamentally that is self-interest. You can’t judge motivations according to superficial charm or niceness. They may seem kind, caring and helpful most of the time – because that works for them. But be warned: if you’ve been on the receiving end of their “dark” traits before, you should expect it to happen again, sooner or later, when circumstances suit.</p>
<p>The second lesson is harder. You can’t trust a Machiavellian, and need to deal with them cautiously. But distrusting your boss and operating with a “strike before the other does” mindset will, if you’re a relatively normal person, <a href="https://link.springer.com/article/10.1007/s10551-016-3251-2">be emotionally draining</a>. You may find yourself becoming more cynical and distrustful generally. </p>
<p>Machiavelli endorsed the strategy of “divide and conquer” in another of his books (The Art of War, published in 1521). Take the opposite tack. This is a time for solidarity. Having a support network and knowing that you are not alone, can serve as an <a href="https://link.springer.com/article/10.1007/s10551-022-05233-8">emotional pillar</a>. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/heres-what-to-do-when-you-encounter-people-with-dark-personality-traits-at-work-192316">Here's what to do when you encounter people with 'dark personality traits' at work</a>
</strong>
</em>
</p>
<hr>
<p>There are no laws against being a manipulative, scheming and self-interested boss. But if these traits manifest as bullying, abuse or victimisation, there is action you may be able to take. For advice contact your union or workplace regulator, such as Australia’s <a href="https://www.fairwork.gov.au/workplace-problems">Fair Work Ombudsman</a>, Britain’s <a href="https://www.acas.org.uk/">Advisory, Conciliation and Arbitration Service</a>, or <a href="https://www.employment.govt.nz/resolving-problems/">Employment New Zealand</a>. </p>
<p>Manipulation, deceit and bullying should never be considered acceptable or necessary. Your psychological and physical wellbeing matters.</p><img src="https://counter.theconversation.com/content/209210/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Working for a Machiavellian boss is infuriating, and bad for your mental health. By understanding what drives this personality, you can limit the fallout.Nelly Liyanagamage, Lecturer, University of Notre Dame AustraliaMario Fernando, Professor of Management, University of WollongongLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2078072023-06-18T20:08:27Z2023-06-18T20:08:27ZTired of shrinking pay? The real drain on Australians’ productivity is falling wages<figure><img src="https://images.theconversation.com/files/532183/original/file-20230615-19-45iygu.png?ixlib=rb-1.1.0&rect=25%2C250%2C1750%2C911&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>When was the last time you got a pay increase? Was it anywhere near the rate of inflation? </p>
<p>If it feels as if your wage is shrinking and cost of living pressures are growing, you’re in good company. And it might just be harming productivity. Here’s why.</p>
<p>Labor productivity (measured as gross domestic product per hour worked) has been shrinking for a year now, after decades of reasonable, albeit declining, productivity growth throughout the 1980s, 1990s and the first two decades of the 2000s.</p>
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<p><a href="https://theconversation.com/we-know-how-to-boost-productivity-and-lift-wages-but-it-will-take-time-and-much-tougher-tax-reform-207609">All sorts of reasons</a> have been suggested. One is working from home. Commonwealth Bank chief Matt Comyn has ordered staff to <a href="https://www.afr.com/work-and-careers/workplace/cba-orders-staff-back-to-the-office-20230518-p5d9l6">return to the office</a> saying there are “certain types of work that are done more effectively in person”.</p>
<p>Reserve Bank research says it might be a resurgence in the proportion of wages set by industry awards rather than workplace agreements, meaning there’s less scope for rewarding performance. </p>
<p>Another is weak wage growth itself.</p>
<h2>Shrinking real wages are demotivating</h2>
<p>We must also look at wages. Wages are falling in inflation-adjusted (“real”) terms.</p>
<p>Adjusted for inflation, Australians are being paid less than they were in 2020.</p>
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<p>Shrinking real wages are demotivating. While this is hardly a new insight, a bemusing number of people seem shocked by the idea that someone might be less keen to work when the real value of what they are paid is falling.</p>
<p>Research on executive compensation established this <a href="https://linkinghub.elsevier.com/retrieve/pii/0304405X7690026X">as long ago as the 1970s</a>. </p>
<p>The whole field of compensation contract theory is based on the insight that a person’s sense of wellbeing goes up with money but down with perceived effort and risk. Money can induce people to work in ways they otherwise would not.</p>
<p>Company boards have long used <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4400226">incentives</a> to encourage otherwise-cautious executives to take risks. They even <a href="https://doi.org/10.1016/j.jfineco.2016.01.022">tailor compensation contracts</a> to executives’ behavioral traits. </p>
<h2>How do workers produce less?</h2>
<p>Consciously or otherwise, workers whose real wages are falling might care less about their jobs. They might work more slowly, or they produce worse-quality goods or services. And their attitude might permeate to other workers and to clients, undermining productivity more broadly.</p>
<p>If this happens at enough corporations – and certainly real wages are falling at enough corporations – it will harm GDP per hour worked throughout the entire economy. </p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/532129/original/file-20230615-17-r1j4vp.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/532129/original/file-20230615-17-r1j4vp.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/532129/original/file-20230615-17-r1j4vp.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=968&fit=crop&dpr=1 600w, https://images.theconversation.com/files/532129/original/file-20230615-17-r1j4vp.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=968&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/532129/original/file-20230615-17-r1j4vp.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=968&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/532129/original/file-20230615-17-r1j4vp.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1216&fit=crop&dpr=1 754w, https://images.theconversation.com/files/532129/original/file-20230615-17-r1j4vp.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1216&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/532129/original/file-20230615-17-r1j4vp.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1216&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Poorly paid workers watch the clock.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
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<p>Sluggish wage growth can also affect the number of observed hours worked. </p>
<p>When wage growth and incentives are strong, ambitious workers will work more than their contracted hours, and won’t claim for it. </p>
<p>They might work on weekends and nights, easing staff scheduling and time zone issues, helping the firm do what it needs to do. </p>
<p>Uncounted extra hours don’t increase the “hours” in GDP per hour, but they do increase the GDP, increasing measured productivity. </p>
<p>When people stop doing unpaid overtime, while their recorded hours mightn’t much change, the GDP they produce declines. </p>
<p>There are reasons to believe Australian workers are no longer going above and beyond to produce more to the extent that they used to.</p>
<p>One is an increase in the number of Australians holding multiple jobs.</p>
<p>Over the past five years, the proportion of Australian workers holding more than one job has climbed from 6% to 6.7%, which appears to be an all-time high.</p>
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<p>These official figures understates the extent to which Australians are turning their focus away from their main jobs for three reasons:</p>
<ul>
<li><p>they exclude side hustles not counted as “jobs”</p></li>
<li><p>they exclude jobs in the cash economy </p></li>
<li><p>they exclude workers whose “new” second job is spending time with their family rather than working overtime.</p></li>
</ul>
<p>The rise in multiple job holders is likely to both increase the total number of hours worked, and reduce the effort workers put into their main jobs.</p>
<p>And, as these second jobs are often more junior, it can mean highly-skilled workers producing less per hour than they would have had they put the hours in their main job.</p>
<p>The overall picture is one of a demotivated workforce realising there is no longer much point in “going the extra mile”, “going above and beyond”, or buying into whatever the latest euphemism is. </p>
<h2>Returning to the office might make things worse</h2>
<p>Although returning to the office might is touted as a way to boost productivity by <a href="https://www.afr.com/policy/economy/banks-push-for-office-return-amid-productivity-woes-20230601-p5dd1u">building collaboration</a>, it might well do the reverse.</p>
<p>There is <a href="https://dx.doi.org/10.1080/13504851.2014.922663">ample evidence</a> to show that workers hate commuting. In capital cities, commuting can consume two hours per day driving, parking and allowing time for unexpected delays.</p>
<p>It is also costly. Workers will tolerate it if there is no other choice or it is a clear path to more money. </p>
<p>But if companies reinstate a two-hour commute and associated costs without paying more money, they are likely to further demotivate their workers, further undermining their willingness to “go above and beyond”, produce more, and be more efficient.</p>
<h2>What’s needed are incentives</h2>
<p>A straightforward solution is to create incentives that make it clear that workers who care more will get cared for more.</p>
<p>The incentives need to be in addition to standard raises. Using them as a cynical ploy to hold wages constant unless employees work ever harder will backfire.</p>
<p>The incentives must also be credible. It isn’t enough to create the vague possibility of promotions. Employers have to demonstrate that if their workers produce more they will be paid more. And the extra pay needs to be enough to matter.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/dont-blame-workers-for-falling-productivity-theyre-not-holding-it-back-207594">Don't blame workers for falling productivity: they're not holding it back</a>
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<p>An even better solution would be job-hopping.</p>
<p>Australians have long been <a href="https://theconversation.com/australias-great-resignation-is-a-myth-we-are-changing-jobs-less-often-170784">lethargic</a> about changing jobs, allowing themselves to be hit with a “loyalty tax” for staying put.</p>
<p>The most recent Bureau of Statistics survey, for the year to February 2022, shows an overdue uptick in the proportion of workers switching jobs, from 7.5% to 9.5%.</p>
<p>The <a href="https://www.abs.gov.au/statistics/labour/jobs/job-mobility/latest-release">2023 update</a> will be released at the end of this month.</p>
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<p>The importance of job-hopping (switching jobs to get better reward) as a means of incentivising both workers and employers makes Labor’s proposed expansion of <a href="https://www.dewr.gov.au/secure-jobs-better-pay/resources/cooperative-workplaces-bargaining-stream">industry-wide enterprise bargaining</a> a bad idea.</p>
<p>If employers set wages together, they are unlikely to set them differently.</p>
<p>In any event, there is little sign that employers are interested in motivating their workers to produce more. It’s easier to blame workers and make a case for low pay rises.</p><img src="https://counter.theconversation.com/content/207807/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Mark Humphery-Jenner does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Adjusted for inflation, Australians are being paid less than they were in 2020. These 4 charts show what’s changed in how we work – and the growing gap between your pay and what you can afford to buy.Mark Humphery-Jenner, Associate Professor of Finance, UNSW SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2071132023-06-07T20:07:39Z2023-06-07T20:07:39ZBusiness is trying to scare us about ‘same job, same pay’. But the proposal isn’t scary<figure><img src="https://images.theconversation.com/files/530502/original/file-20230607-21-fldsij.png?ixlib=rb-1.1.0&rect=58%2C60%2C1059%2C539&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.findabetterway.com.au/">Minerals Council of Australia</a></span></figcaption></figure><p>On Monday, eight of Australia’s largest employer groups launched a campaign against the government’s <a href="https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6808">Same Job, Same Pay Bill</a>, saying it was “unfair”. </p>
<p>The television ads and <a href="https://www.findabetterway.com.au/">website</a> say the proposed law would penalise hard workers with “decades of knowledge and experience” by forcing employers to pay everyone the same (in the hard workers’ case, lower) wage. </p>
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<figcaption><span class="caption">Minerals Council of Australia advertisement.</span></figcaption>
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<p>The employer groups are right about one thing. What’s at stake is fairness, although not in the way they suggest.</p>
<p>The bill, first put forward by Labor leader Anthony Albanese in opposition, would rein in the disingenuous use of <a href="https://www.corrs.com.au/insights/same-job-same-pay-a-bold-and-novel-proposal-for-labour-market-regulation">labour-hire contracts</a>.</p>
<p>Its explanatory memorandum says its aim is to “ensure that workers employed through labour-hire companies will receive no less than the same pay as workers employed directly”.</p>
<p>It would do this in two ways.</p>
<ul>
<li><p>labour-hire businesses would be required to afford to all workers whom they provide to another person “pay and conditions which are no less favourable” than those required to be paid to direct employees of that person</p></li>
<li><p>firms or people that use labour-hire businesses would be required to provide the labour-hire business with all the information it would reasonably require to comply with the act and to refrain from engaging any labour-hire business that did not comply with the act.</p></li>
</ul>
<p>The bill is part of an election promise Labor made to address instances of employers using labour-hire firms to deliberately undercut the wages and conditions they offer in enterprise agreements.</p>
<h2>Labor hire isn’t all bad</h2>
<p>Many labour-hire arrangements are put in place for legitimate reasons.</p>
<p>Among the examples are aged-care workers contracted through an external agency to backfill sick leave and production workers contracted to deal with unexpected increases in demand. </p>
<p>In the preamble to the bill, the government explicitly says it will not affect the ordinary and fair use of labour hire, including as a reasonable way to manage surge periods and employee absences. </p>
<p>But the misuse of labour-hire agreements is contributing to the fracturing of Australian workplaces by setting up two – and sometimes more – sets of employment conditions, which is inherently unfair.</p>
<h2>But labour-hire workers can be poorly paid</h2>
<p>The Bureau of Statistics finds 84% of workers on labour-hire contracts don’t have access to paid leave entitlements. Their median annual earnings are A$33,100. Labour-hire work is insecure and poorly compensated for being insecure.</p>
<p>Labour-hire workers are also more likely to sustain workplace injuries due to inadequate training and management practices. </p>
<p>In November the South Australian Employment Tribunal found in favour of a worker who was “not trained adequately or at all in relation to the safe completion of the task” that resulted in their death.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/the-costs-of-a-casual-job-are-now-outweighing-any-pay-benefits-82207">The costs of a casual job are now outweighing any pay benefits</a>
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<p>The employers’ groups campaigning against the Bill include the Australian Chamber of Commerce and Industry, the Australian Petroleum Production & Exploration Association, the Business Council of Australia and the Council of Small Business Organisations. </p>
<p>They also include the Minerals Council of Australia headed up by Tania Constable who told 2GB’s <a href="https://omny.fm/shows/the-ray-hadley-morning-show/ad-campaign-to-fight-back-against-proposed-labor-p?t=5m22s">Ray Hadley</a> on Monday the bill would mean someone could “be employed by a business for six months and get the same pay as somebody that has been there for six years”. </p>
<h2>The bill does not require every worker to be paid the same</h2>
<p>The bill does not relate to the rates of pay within organisations. What it would do is require labour-hire firms to provide pay and conditions “no less favourable” than those paid to direct employees performing the same duties. </p>
<p>It would not change or override anything in enterprise agreements. </p>
<p>The employers groups have also claimed the bill would <a href="https://www.findabetterway.com.au/">suppress wage growth</a> when the opposite is more likely to be true.</p>
<p>Fragmented workplaces and the low wages common in insecure contracts (including labour-hire agreements) have been exerting a downward pressure on Australian wages.</p>
<h2>It is more likely to lift than depress wages</h2>
<p>Rather than lowering permanent employees’ wages, the bill would lift the wages of labour-hire workers up to their level.</p>
<p>Claims that it would disincentivise hard work or hurt productivity (or <a href="https://omny.fm/shows/the-ray-hadley-morning-show/ad-campaign-to-fight-back-against-proposed-labor-p?t=6m40s">cost jobs</a>) obscure what the bill is about: ensuring workers who are doing the same job go home with the same paycheck at the end of each day.</p>
<p>The government will put the bill before parliament later this year. </p>
<p>It is worth considering what the motives might be of those who oppose it. It might be that they are not as keen to increase wages, productivity and employment as they say and are more concerned about keeping the right to pay externally hired contractors less than the workers they work alongside.</p><img src="https://counter.theconversation.com/content/207113/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Gemma Beale does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Business groups say the Same Job, Same Pay Bill will force employers to pay inexperienced workers the same experienced ones. In fact, it relates to labour-hire firms.Gemma Beale, Senior Project Officer, Australian Industrial Transformation Institute, Flinders UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2007002023-03-06T19:03:32Z2023-03-06T19:03:32ZUnderlying Australia’s inflation problem is a historic shift of income from workers to corporate profits<figure><img src="https://images.theconversation.com/files/513559/original/file-20230306-20-e5xeu0.jpg?ixlib=rb-1.1.0&rect=0%2C473%2C8328%2C4201&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">shutterstock</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>The three years since the onset of the pandemic have witnessed a dramatic redistribution of national income, away from labour compensation and towards business profits. </p>
<p>No one should be surprised. Supply-chain disruptions, pent-up consumer demand and inflation have provided businesses with a golden opportunity to increase their margins. Many have taken it.</p>
<p>The latest <a href="https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/latest-release#income">GDP data</a> from the Australian Bureau of Statistics confirms that, in the three years since December 2019, corporate gross operating profits have risen 43.6% – more than twice the growth in wages.</p>
<p>As a result, the share of GDP going to corporate profits has increased by 3.6 percentage points. Conversely, labour’s share shrank by 2.3 percentage points, despite low unemployment rates and rising nominal wages. Even hard-pressed small businesses, personified by the friendly neighbourhood café owner, did better. </p>
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<p>The 29% share of national income now going to corporate profits is the highest in Australian history – higher even than 2020 when profits were temporarily boosted by JobKeeper payments and other business subsidies. Meanwhile, workers’ share of GDP reached its lowest point ever (just 45%).</p>
<p>The decline has implications for inequality and social cohesion. It is translating into a notable decline in workers’ real living standards, and exacerbating the rise in inflation.</p>
<h2>No, it’s not all about mining</h2>
<p>Some claim the rise in profits <a href="https://www.afr.com/work-and-careers/workplace/business-says-unions-profit-focus-creates-us-v-them-narrative-20220722-p5b3sx">is solely due</a> to supercharged energy and mining prices, and hence does not indicate any general shift in distribution patterns. </p>
<p>The Business Council of Australia’s head, Jennifer Westacott, has <a href="https://www.afr.com/work-and-careers/workplace/business-says-unions-profit-focus-creates-us-v-them-narrative-20220722-p5b3sx">even claimed that</a> the profit share of non-mining businesses has fallen. </p>
<p>Her calculation is flawed: it excludes mining from one part of the equation (profits) but not the other part (nominal GDP). In 2022 mining’s contribution to GDP <a href="https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/dec-2022/5206045_Industry_GVA_Current_Price.xlsx">exceeded 15%</a>. </p>
<p>An apples-to-apples comparison, measuring non-mining profits to non-mining GDP, shows profits have grown relative to GDP in most of the economy, not just in mining. While mining profits surged 89% in the three years to December 2022, non-mining profits increased 29% – faster than non-mining GDP, and much faster than wages.</p>
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<p>In sum, the redistribution of national income is occurring across the economy, with a smaller share for workers and a larger share for the owners of the businesses they work for. </p>
<h2>Real wages have plummeted</h2>
<p>This decline in labour’s share of GDP just since the pandemic represents foregone earnings of close to A$5,000 a year per employee, on average. </p>
<p>This extends a longer-term ongoing erosion of labour’s share of GDP that has been occurring since the 1980s. It has occurred despite a modest uptick in nominal wage growth, and statutory increases in superannuation contributions by employers (which are included in the statistics above). </p>
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<p>Post-COVID inflation has caused a steep fall in the absolute purchasing power of wages. </p>
<p>This is confirmed by the ABS <a href="https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release#data-downloads">Wage Price Index</a> (WPI), which reports changes in average wage levels. It’s a good measure of pure wage inflation, analogous to the Consumer Price Index (CPI) for consumer goods and services. </p>
<p>The latest WPI data shows nominal wages rose 3.3% in the 12 months to December 2022. But with the CPI rising 7.8% in the same period – the biggest gap between the WPI and CPI since the Australian Bureau of Statistics began gathering this data in 1997 – wage growth has now lagged consumer prices for seven consecutive quarters. This is also a record.</p>
<p>As a result, real wages have fallen by 5% in the three years since December 2019.</p>
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<p>(The temporary spike in real wages in mid-2020 was an unusual consequence of lockdowns, which most affected low-paid jobs in sectors like hospitality and retail. The loss of these jobs pumped up average wages for the rest, but that was reversed when those sectors re-opened after the lockdowns.) </p>
<p>The real purchasing power of wages is now back to the same level as 2010. More than a decade’s worth of gradual improvement for Australian workers has been wiped out. </p>
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Read more:
<a href="https://theconversation.com/the-certainty-of-ever-growing-living-standards-we-grew-up-with-under-queen-elizabeth-is-at-an-end-190425">The certainty of ever-growing living standards we grew up with under Queen Elizabeth is at an end</a>
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<p>Worse, more losses are to come through 2023, and likely much of 2024, according to <a href="https://www.rba.gov.au/publications/smp/2023/feb/pdf/statement-on-monetary-policy-2023-02.pdf">Reserve Bank of Australia forecasts</a>.</p>
<h2>Why is the RBA focused on wages?</h2>
<p>Claims that businesses are mere intermediaries in inflation – simply passing on higher costs to consumers – are disproved by the growth in corporate profits.</p>
<p>This is most starkly visible in mining and energy prices, one of the largest sources of recent CPI inflation. But even in non-mining sectors prices have increased faster than required simply to offset higher costs. </p>
<p>In <a href="https://futurework.org.au/report/profit-price-spiral-the-truth-behind-australias-inflation/">other research</a>, I have estimated the rise in corporate profits since December 2019 (both mining and non-mining) accounts for 69% of the jump in inflation above the RBA’s 2.5% target.</p>
<p>Workers are already paying for higher inflation through falling purchasing power. They will pay again through job and income losses from any economic slowdown (potentially a recession) caused by the RBA’s response to that inflation. </p>
<p>Yet the RBA remains narrowly obsessed with supposedly overheated labour markets and rising wages. Its February <a href="https://www.rba.gov.au/publications/smp/2023/feb/pdf/statement-on-monetary-policy-2023-02.pdf">Statement on Monetary Policy</a> mentions wages more than 70 times. Profits are mentioned just once.</p>
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Read more:
<a href="https://theconversation.com/profits-push-up-prices-too-so-why-is-the-rba-governor-only-talking-about-wages-185688">Profits push up prices too, so why is the RBA governor only talking about wages?</a>
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<h2>Acknowledging reality</h2>
<p>Concern over the redistribution of national income from labour to capital is not class envy. For working-class households it has resulted in an increasing struggle to make ends meet.</p>
<p>Addressing and ameliorating the effects of this historic redistribution will require a comprehensive and complex <a href="https://www.actu.org.au/media/1450094/actu-job-summit-papers-macroeconomics-10-august-2022.pdf">range of policy responses</a>. Crucially it requires wages growing faster than prices, both to make up for past real wage losses, and to reflect ongoing productivity growth.</p>
<p>Possible measures to short-circuit this profit-price inflation, and support a recovery in real wages, include <a href="https://www.axios.com/2022/09/06/no-longer-a-1970s-relic-price-controls-are-back">price controls</a> in energy, housing and other strategic sectors; redistributing excess profits in sectors such as mining through <a href="https://australiainstitute.org.au/post/gas-giants-reap-40-billion-in-windfall-war-profits-report/">tax</a> and transfer mechanisms; and <a href="https://futurework.org.au/report/collective-bargaining-and-wage-growth-in-australia/">stronger collective bargaining</a> provisions.</p>
<p>Such responses are controversial, and will spark debate. They will need careful research and design to ensure they do more good than harm. </p>
<p>But the first step is to acknowledge that this reapportionment of the economic pie, from labour to capital, is indeed happening – and is a problem.</p><img src="https://counter.theconversation.com/content/200700/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jim Stanford is a member of the Australian Services Union.</span></em></p>Since the pandemic Australian workers’ share of national income and purchasing power has fallen at an unprecedented rate. New policies are needed.Jim Stanford, Economist and Director, Centre for Future Work, Australia Institute; Honorary Professor of Political Economy, University of SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1997842023-02-15T19:06:30Z2023-02-15T19:06:30Z40 years on, does Australia need another Prices and Incomes Accord?<figure><img src="https://images.theconversation.com/files/510252/original/file-20230215-16-nk2hzu.jpg?ixlib=rb-1.1.0&rect=62%2C95%2C874%2C429&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Andrew Chapman/National Library of Australia</span></span></figcaption></figure><p>The election of the Hawke Labor government on March 5 1983 began an era of once-in-a-century economic reforms that opened the Australian economy to the world. It floated the dollar, eliminated controls on international capital flows, and dismantled the high tariffs that protected local manufacturers from imports. It refocused Australia’s international trade and foreign policy on the Asia-Pacific region. </p>
<p>But perhaps its most striking innovation was in place even before it was elected: a historic agreement with the Australian Council of Trade Unions, known as the Prices and Incomes Accord (or “the Accord”), announced on February 22 1983. </p>
<p>Under this deal, the union movement agreed to curb demands for higher wage rises in exchange for increases in the “social wage”. Accordingly, the Hawke government introduced measures such as universal health insurance and superannuation, and more funding for education and training, child care and social security.</p>
<p>Seven versions of the accord would be signed over the next 13 years – the last one under Paul Keating, who replaced Hawke in 1991.</p>
<p>By providing the foundations for fewer strikes and curbing the inflationary effect of wage demands, the accord arguably contributed more than any other Hawke-Keating-era reform to setting up Australia for almost three decades without a recession (defined as two consecutive quarters of negative GDP). </p>
<p>Is there a case for the Albanese government to resurrect the accord process? Yes, even though circumstances are very different now.</p>
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Read more:
<a href="https://theconversation.com/australian-politics-explainer-the-prices-and-incomes-accord-75622">Australian politics explainer: the Prices and Incomes Accord</a>
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<h2>‘Bringing Australia together’</h2>
<p>The accord was the centrepiece of Hawke’s 1983 campaign. He wanted to avoid the mistakes a decade before of the short-lived Whitlam government, whose economic policies were tailored to the long postwar boom but unsuitable for the stagflation (high inflation and high unemployment) engendered by the oil supply crisis of the mid-1970s.</p>
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<p>Australia was still suffering from this stagflation in 1983, with double-digit inflation, and unemployment rising towards 10%. The accord promised to fix this, and end the industrial conflict under the Fraser government (1975-83). Hawke’s election slogan “Bringing Australia together” said it all.</p>
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<p>That Hawke was able to deliver this deal was due to his close relationship with the ACTU, having been its president from 1969 to 1980. As a trade unionist, he was confrontational. As aspiring prime minister, he stressed consensus. Whitlam would later quip to me: “Bob Hawke’s greatest advantage as prime minister was that he didn’t have to deal with Bob Hawke as ACTU president.” </p>
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Read more:
<a href="https://theconversation.com/what-i-learned-from-bob-hawke-economics-isnt-an-end-itself-there-has-to-be-a-social-benefit-117314">What I learned from Bob Hawke: economics isn't an end itself. There has to be a social benefit</a>
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<p>Hawke also benefited from the support of economics-trained unionist Bill Kelty, who became ACTU general secretary in 1983. With Accord Mark II, signed in September 1985, Kelty convinced the unions to accept wage discounting after a sharp devaluation in the Australian dollar to avoid higher import prices (leading to more wage-price inflation). In return, workers got tax cuts to boost take-home pay.</p>
<p>Not everyone in the union movement appreciated the accord. The head of the militant Building Workers Industrial Union, <a href="https://labourhistorymelbourne.org/2022/04/27/the-union-leader-who-dared-to-dream/">Tom McDonald</a>, told me: </p>
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<p>The accord enabled unions – particularly the left – to focus on the creation of wealth as well as the distribution of wealth. In its very essence, the accord prepared the Australian workforce for globalisation and got us out of stagnation. </p>
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<p>Even Keating was initially an accord sceptic. He considered it a rerun of the incomes policies of Britain’s Wilson-Callaghan Labour governments of the 1970s. But he ended up a self-proclaimed “accord warrior”, working closely with Kelty.</p>
<h2>Is it time for a new accord?</h2>
<p>Attempting to fully replicate the accord’s template would be a mistake. </p>
<p>Economic and political conditions in 2023 are very different to 1983. While inflation is a problem, there is no stagflation. Unemployment is at historically low levels, and <a href="https://theconversation.com/1970s-style-stagflation-now-playing-on-central-bankers-minds-185868">fears of a wages explosion</a> have failed to materialise. The Reserve Bank of Australia expects <a href="https://theconversation.com/rbas-latest-forecasts-are-grim-here-are-5-reasons-why-199509">real wages will continue to fall</a>. </p>
<p>This is in part because union power has been so greatly reduced. In 1983, nearly 50% of the workforce was unionised. Now, <a href="https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/trade-union-membership/aug-2022">it is 12.5%</a> – and in the private sector <a href="https://www.afr.com/work-and-careers/workplace/union-membership-in-private-sector-shrinks-to-8-per-cent-20230112-p5cc42">just 8%</a>. So any deal with the ACTU just wouldn’t have the same effect.</p>
<p>But there are grounds for the Albanese government to emulate the spirit of consensus that underpinned the accord, forging a grand bargain between unions, employer groups and other stakeholders. </p>
<p>This would be similar to Germany’s industrial relations model, which characterises employers and unions as “social partners”, working cooperatively with government. </p>
<p>A new accord would help because employers are fearful that the Albanese government’s industrial relations reforms – notably expanding the capacity for multi-enterprise collective bargaining – will <a href="https://theconversation.com/why-unions-and-small-business-want-industry-bargaining-from-the-jobs-summit-and-big-business-doesnt-189394">lead to a wage explosion</a>.</p>
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Read more:
<a href="https://theconversation.com/what-the-compromise-ir-deal-means-for-wage-negotiations-and-pay-rises-195545">What the compromise IR deal means for wage negotiations, and pay rises</a>
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<p>To achieve a deal in which unions cap their demands in exchange for social-wage benefits, the government could offer to make dental care part of Medicare, increase unemployment payments, or invest more in early childhood education. </p>
<p>That way, employers could rest easy about industry bargaining. Workers would know they are getting benefits as valuable as a pay rise. Such a pact would help keep inflation in check, taking pressure off the Reserve Bank of Australia to curb inflation through interest-rate hikes.</p>
<p>A new accord could even include reforming the mess of federal and state taxation and distribution, and the major economic policy making and advisory institutions such as the RBA and the Productivity Commission.</p>
<p>The 1983 accord was a great success because it was the right suite of policies at the right time. Forty years later, Albanese and his treasurer, Jim Chalmers, have an opportunity to forge an accord-like framework fit for conditions now. </p>
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<p><em>This article was co-authored by Jerome Fahrer, a former economist with the Reserve Bank of Australia and now director of ACIL Allen Consulting.</em></p><img src="https://counter.theconversation.com/content/199784/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Tim Harcourt was a Research Officer with the ACTU during the Hawke Keating Labor Government
This article was co-authored with Jerome Fahrer, Director of ACIL Allen</span></em></p>Though times are very different now, there’s a strong case for the Albanese government to resurrect the Accord process of the Hawke-Keating era.Tim Harcourt, Industry Professor and Chief Economist, University of Technology SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1988592023-01-31T04:22:52Z2023-01-31T04:22:52ZPay, safety and welfare: how the new Centre for Arts and Entertainment Workplaces can strengthen the arts sector<figure><img src="https://images.theconversation.com/files/507262/original/file-20230131-16-ddual9.jpg?ixlib=rb-1.1.0&rect=15%2C7%2C5160%2C3437&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Terren Hurst on Unsplash</span></span></figcaption></figure><p>In May, <a href="https://theconversation.com/tony-burkes-double-ministry-of-arts-and-industrial-relations-could-be-just-what-the-arts-sector-needs-183623">we predicted</a> Tony Burke’s joint portfolio of workplace relations and the arts was an opportunity to address some of the challenges facing the arts and cultural sector. </p>
<p>With the <a href="https://theconversation.com/arts-are-meant-to-be-at-the-heart-of-our-life-what-the-new-national-cultural-policy-could-mean-for-australia-if-it-all-comes-together-198786">launch of Revive</a>, the new national cultural policy, we’re seeing this potentially start to pay off. </p>
<p>One focal point of Revive is the establishment of the Centre for Arts and Entertainment Workplaces, a new body within Creative Australia (a rebranded and expanded Australia Council). The role of the centre is,
<a href="https://www.arts.gov.au/publications/national-cultural-policy-revive-place-every-story-story-every-place">according to the policy</a>:</p>
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<p>to provide advice on issues of pay, safety and welfare in the arts and entertainment sector, refer matters to the relevant authorities and develop codes of conduct and resources for the sector.</p>
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<p>The policy frames artists as workers deserving of workplace protections and rights. As Prime Minister Anthony Albanese said at the launch: “Arts jobs are real jobs.” </p>
<p>It’s no secret the arts sector has a poor track record when it comes to working conditions. A <a href="https://futurework.org.au/wp-content/uploads/sites/2/2021/07/Creativity_in_Crisis-_Rebooting_Australias_Arts___Entertainment_Sector_-_FINAL_-_26_July.pdf">report from 2021</a> noted 45% of Australia’s arts and cultural workers were in casual or insecure roles. The gender pay gap in the arts is <a href="https://australiacouncil.gov.au/advocacy-and-research/culture-and-the-gender-pay-gap-for-australian-artists/">9% wider</a> than other sectors of the economy. The music industry continues to <a href="https://www.theguardian.com/music/2022/sep/01/a-very-low-glass-ceiling-sexism-and-harassment-rife-in-australian-music-long-awaited-report-finds">make headlines</a> for widespread bullying and sexual harassment. Meanwhile, the sector is struggling to <a href="https://theconversation.com/junior-staff-are-finding-better-contracts-senior-staff-are-burning-out-the-arts-are-losing-the-war-for-talent-194174">attract and retain workforce talent</a>. </p>
<p>It’s clear things need to change. </p>
<p>What role could the Centre for Arts and Entertainment Workplaces play in addressing these issues? </p>
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Read more:
<a href="https://theconversation.com/tony-burkes-double-ministry-of-arts-and-industrial-relations-could-be-just-what-the-arts-sector-needs-183623">Tony Burke's double ministry of arts and industrial relations could be just what the arts sector needs</a>
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<h2>Benchmarking standards</h2>
<p>The centre’s role will be a mix of regulation, policy and provision of resources. </p>
<p>It will be able to set standards around minimum inclusions in grant processes – such as compliance with the <a href="https://theconversation.com/employers-will-have-positive-duty-to-prevent-sexual-harassment-in-workplaces-under-new-legislation-191350">Respect@Work</a> recommendations. The centre will also act as a referral agency to organisations such as Fair Work Australia and Comcare. Whether it will function as an investigative or policing body remains to be seen. </p>
<p>Its overarching responsibility will be to establish a connection between the arts and issues of pay, safety and welfare. </p>
<p>The development of safe workplaces relies, first and foremost, on the provision of fair and equitable wages. If artists can’t survive financially, they can’t thrive.</p>
<p>The Australia Council has <a href="https://australiacouncil.gov.au/investment-and-development/protocols-and-resources/payment-of-artists/">highlighted the importance</a> of fair pay. The council has a dedicated web page on artist payments and requires funding applicants to meet the minimum rates of pay under relevant industry standards. </p>
<p>The challenge has been a lack of consistent industrial benchmarks establishing these standards and the absence of consequences for organisations that choose to ignore them. Part of the difficulty also stems from the <a href="https://livemusicoffice.com.au/wp-content/uploads/2015/07/CIIC-Valuing-Australias-Creative-Industries-2013.pdf">size and structure of many arts organisations</a>, which often lack designated human resources specialists. This leaves independent contractors and casual workers with little formal recourse against unfair working conditions. </p>
<p>Efforts to promote artist safety and welfare also already exist in Australia cultural policy. <a href="https://www.dpc.sa.gov.au/responsibilities/arts-and-culture/grants/guidelines">Arts South Australia</a>, has incorporated “respectful behaviours” guidelines into their funding agreements. But, like fair pay, these kinds of policies can be vague and often little more than aspirational in practice. </p>
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<p>There is an opportunity for the Centre for Arts and Entertainment Workplaces to establish strong standards set expectations within the sector and help to hold arts organisations to account. </p>
<p>Burke told <a href="https://www.abc.net.au/triplej/programs/hack/hack/14139276">Triple J’s Hack</a> the centre will develop codes of conduct, and if organisations aren’t “keeping up to date” with these codes around workplace bullying and harassment, they will not be able to “come knocking on the door for government funding”. </p>
<p>The centre will also importantly function as a point of contact and referral for arts workers who have nowhere else to go for support.</p>
<p>Other areas where the centre can offer substantive value are in the improvement of workplace standards and the communication of revised industrial frameworks and awards. However, the centre’s ability to build of new cultures across the <a href="https://www.infrastructure.gov.au/sites/default/files/characteristics-of-employment-and-business-activity-in-cultural-and-creative-sectors_0.pdf">dispersed workforce</a> of freelancers, sole traders and small to medium enterprises will remain a significant challenge. </p>
<p>Arts workers recognise the need for change, but they need access to specialist advice to achieve it. </p>
<h2>Signs of optimism</h2>
<p>There has been <a href="https://www.artshub.com.au/news/opinions-analysis/national-cultural-policy-revives-unfamiliar-hope-2608706/">some unease</a> about the increased role of arts bureaucracy within the new cultural policy. The decision to create three new administrative entities in addition to the Centre for Arts and Entertainment Workplaces – all with significant budgets – highlights concerns institutions are once again being prioritised over individual artists. </p>
<p>In the case of the centre, the key will be whether the body can actually address the art sector’s unstable and inequitable workplace conditions through its policies and regulations. </p>
<p>As a sign of optimism, this model isn’t without precedent. The Swedish arts sector has seen significant success using a <a href="https://fr.unesco.org/creativity/policy-monitoring-platform/measures-gender-equality-area">similar top-down institutional approach</a> to address cultural workforce issues, particularly around gender inequality. </p>
<p>Since 2006, Sweden has implemented multiple policies leveraging access to funding and quotas to increase women’s representation in the arts. In 2011, the Swedish Arts Council even launched a <a href="https://musikverket.se/om-musikverket/?lang=en">dedicated agency</a> to help support projects promoting gender equality in music. </p>
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<p>Ultimately, what the centre achieves will be shaped by the decision-makers within it. The centre’s staff must represent Australia’s diverse creative community and clearly understand how and why things must change. As <a href="https://theconversation.com/arts-are-meant-to-be-at-the-heart-of-our-life-what-the-new-national-cultural-policy-could-mean-for-australia-if-it-all-comes-together-198786">Jo Caust notes</a>, detail and execution are critical. Cultural policy is more than words, it’s what happens after that makes the difference. </p>
<p>As columnist Sean Kelly <a href="https://www.smh.com.au/politics/federal/can-australia-become-a-nation-that-takes-art-seriously-20230127-p5cg1s.html">suggests</a>, Revive’s true measure of success will be the health of arts workplaces: </p>
<blockquote>
<p>Burke will be judged on whether the arts again becomes a field that people want to work in – a field in which workers are respected and paid properly for their work.</p>
</blockquote>
<p>The Centre for Arts and Entertainment Workplaces will play a crucial role in determining that success. </p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/arts-are-meant-to-be-at-the-heart-of-our-life-what-the-new-national-cultural-policy-could-mean-for-australia-if-it-all-comes-together-198786">'Arts are meant to be at the heart of our life': what the new national cultural policy could mean for Australia – if it all comes together</a>
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<img src="https://counter.theconversation.com/content/198859/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The centre will importantly function as a point of contact and referral for arts workers who have nowhere else to go for support.Kim Goodwin, Lecturer, The University of MelbourneCaitlin Vincent, Lecturer in Creative Industries, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1979922023-01-22T19:02:36Z2023-01-22T19:02:36ZIf you haven’t joined a union, it’s time you paid to benefit from union deals<p>A long overdue public debate has started in Australia about “free riding” in industrial relations – when non-union members benefit from collective agreements negotiated by union members without contributing (through membership dues or other payments) to their negotiation and administration.</p>
<p>Several union leaders <a href="https://www.smh.com.au/politics/federal/unions-push-for-a-wage-deal-levy-for-non-members-20230109-p5cbbv.html">want</a> rules to stop free riding. Without this, they argue, union membership will keep falling, imperilling collective bargaining.</p>
<p>The issue has been given impetus by the <a href="https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/trade-union-membership/latest-release">latest data</a> on union membership rates. The proportion of employees belonging to a union is now a record low 12.5%. In the private sector it’s <a href="https://www.afr.com/work-and-careers/workplace/union-membership-in-private-sector-shrinks-to-8-per-cent-20230112-p5cc42">just 8%</a>.</p>
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<p>In the 1980s more than half of the Australian workforce was unionised. Since then Australia has experienced the most dramatic deunionisation of any major industrial country.</p>
<p>That, at least in part, is by design. The Howard government passed laws in the late 1990s and 2000s prohibiting union preferences in hiring, bargaining fees or <a href="https://parlinfo.aph.gov.au/parlInfo/download/legislation/billsdgs/AEG86/upload_binary/aeg8610.pdf;fileType=application/pdf#search=%22O%E2%80%99Neill,%20S.%202002.%20Bills%20%20Workplace%20Relations%20Amendment%20(Prohibition%20of%20Compulsory%20Union%20Fees)Bill%202002%22">other structured supports</a> for union membership.</p>
<p>But the idea workers can get something for nothing – enjoying the benefits of collective bargaining, without contributing to its costs – ignores both economic theory and reality.</p>
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<h2>The economics of free riding</h2>
<p>Economists have <a href="https://link.springer.com/chapter/10.1007/978-0-306-47828-4_214">long grappled with</a> the problem of free riders in many areas of economic life. </p>
<p>The textbook case involves “<a href="https://www.jstor.org/stable/1925895">public goods</a>” – things to which access cannot be limited to paying customers. Examples are clean air and water, infrastructure, policing and national defence.</p>
<p>With public goods, conventional market mechanisms (based on “rational” individual choice) do not work. If something is “free to all”, there will be some people prepared to voluntarily contribute to its cost, and others that won’t. </p>
<p>To address this market failure, economists endorse policy interventions that deliberately interfere with individual “choice”. For government-provided public goods, this usually relies on compulsory contributions (taxes). </p>
<h2>Why pay when you get it for free?</h2>
<p>Other industries and ventures also encounter free rider problems, and laws have evolved to address them.</p>
<p>For example, unit owners in a residential strata don’t have “free choice” to refuse monthly strata fees. They are required to contribute to the collective costs of running their shared building. The power of the strata to set and collect monthly fees is provided for in Australian law. If strata fees were voluntary, the whole system of strata ownership would collapse.</p>
<p>Nor can individual shareholders in a corporation choose to withhold their share of payments approved by the corporation’s duly elected directors. These provisions are recognised and protected in law. </p>
<p>When it comes to collective bargaining, however, Australian law not only tolerates but effectively encourages free riding. </p>
<p>Under the <a href="https://www.legislation.gov.au/Details/C2021C00421">Fair Work Act</a>, any benefit or entitlement (from higher wages, to working conditions, to rostering systems) negotiated through enterprise bargaining must be equally available to all workers covered by an agreement. </p>
<p>A narrowly “rational” individual might understandably ask why they should join the union when they can get all the benefits of a union-negotiated contract anyway. </p>
<p>Left to individual “choice” in this context, it’s not surprising union membership has fallen.</p>
<h2>How other nations deal with the problem</h2>
<p>I have catalogued <a href="https://www.tandfonline.com/doi/abs/10.1080/10301763.2021.1987052?journalCode=rlab20">six distinct approaches</a> used by other nations to address this market failure and establish a viable foundation for collective bargaining. All are founded on the presumption that collective bargaining is socially beneficial and should be encouraged. </p>
<p>One approach, informed by traditional conceptions of property rights, is to “close off” access to union-negotiated wages and benefits to dues-paying members only. Varieties of this strategy have been tried <a href="https://tcf.org/content/report/members-only-unions-can-they-help-revitalize-workplace-democracy/">in the United States</a> and in New Zealand.</p>
<p>This has generally not worked, however, because employers can still undermine unions by voluntarily offering equal improvements to non-members. It also damages worker solidarity, critical to any collective organisation.</p>
<p>Britain, <a href="https://www.thecanadianencyclopedia.ca/en/article/rand-formula#:%7E:text=The%20Rand%20Formula%20is%20a,those%20workers%20are%20union%20members.">Canada</a>, India and Japan (among others) allow “closed shop” or “agency shop” arrangements. In any workplace that has been unionised (through some kind of majority decision, like a ballot or petition), all covered workers pay dues to reflect the benefits they receive from the collective agreement. In a closed shop they must join the union. In an agency shop they don’t have to join the union but do have to pay the same fees.</p>
<p>The Philippines, South Africa and the US are among those with a modified agency shop system called “bargaining fees”. Everyone covered by an enterprise agreement (which must be ratified by affected workers) contributes something (usually less than full union dues) to the direct costs of negotiating and administering that agreement.</p>
<p>France and Brazil are among several countries that directly support collective negotiations with public subsidies. Like paying taxes for public goods, this approach directly allocates resources to fund a service (collective bargaining) deemed to be essential for a healthy labour market. New Zealand is taking a similar approach with its new <a href="https://www.employment.govt.nz/starting-employment/unions-and-bargaining/fair-pay-agreements/">Fair Pay Agreements</a> (in effect since December 2022).</p>
<p>In Germany, Italy and many other European countries, collective bargaining is mandated by law, with employers above a certain size required to establish a workers council and cover the costs. Workers don’t have to join the union but, with such a well-funded infrastructure, collective bargaining <a href="https://www.tandfonline.com/doi/abs/10.1080/10301763.2021.1901333">remains strong</a>.</p>
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<img alt="Workers gather on Place de la Republique, Paris, to demonstrate against proposed pension changes, Thursday, January 19, 2023." src="https://images.theconversation.com/files/505711/original/file-20230122-22-ir3pzc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/505711/original/file-20230122-22-ir3pzc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/505711/original/file-20230122-22-ir3pzc.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/505711/original/file-20230122-22-ir3pzc.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/505711/original/file-20230122-22-ir3pzc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/505711/original/file-20230122-22-ir3pzc.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/505711/original/file-20230122-22-ir3pzc.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">More than 90% of French workers are covered by collective agreements.</span>
<span class="attribution"><span class="source">Lewis Joly/AP</span></span>
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<p>In the Nordic countries and Belgium, extra support for collective bargaining is provided through <a href="https://www.tandfonline.com/doi/abs/10.1080/10301763.2021.1953223">union sponsorship</a> of income support and social programs (like unemployment insurance and pensions). Workers are attracted to join their union to get better access to these services. This provides unions with resources and leverage for collective bargaining.</p>
<h2>Developing an Australian-made fix</h2>
<p>So there is a wide choice of specific ways to fix the free rider problem in industrial relations. </p>
<p>In Australia, however, the right to free ride is fully protected, even celebrated. The result (as intended) has been the steady erosion of union membership. Australia is now quickly <a href="https://stats.oecd.org/Index.aspx?DataSetCode=TUD">converging with the US</a> as one of the least unionised nations in the <a href="https://www.oecd.org/">OECD</a>. </p>
<p>In December, the Albanese government passed its <a href="https://ministers.dewr.gov.au/anthony-albanese/delivering-secure-jobs-and-better-pay#:%7E:text=The%20Albanese%20Labor%20Government%20has,deal%20and%20a%20better%20future.">Secure Jobs, Better Pay bill</a>, aimed at strengthening collective bargaining. If these reforms succeed in broadening collective bargaining coverage, <a href="https://futurework.org.au/wp-content/uploads/sites/2/2022/11/Collective_Bargaining_and_Wage_Growth_in_Australia_FINAL.pdf">the evidence suggests</a> Australia’s abysmal wage growth will pick up. </p>
<p>That alone should enhance workers’ appreciation of the value of collective action, and indirectly strengthen the incentive for union membership.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/employers-say-labors-new-industrial-relations-bill-threatens-the-economy-denmark-tells-a-different-story-193311">Employers say Labor's new industrial relations bill threatens the economy. Denmark tells a different story</a>
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<p>Eventually, however, it will need to be recognised that collective bargaining is not free, and is being undermined by a legal framework that pretends it is.
We need to develop a made-in-Australia solution to fix it.</p><img src="https://counter.theconversation.com/content/197992/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jim Stanford is a member of the Australian Services Union.</span></em></p>Australia’s protection, even celebration, of ‘free riders’ in industrial relations is driving union membership down to US levels.Jim Stanford, Economist and Director, Centre for Future Work, Australia Institute; Honorary Professor of Political Economy, University of SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1974822023-01-11T16:35:23Z2023-01-11T16:35:23ZRishi Sunak’s new law could force workers to break strikes<p>Amid ongoing strikes across multiple sectors, Rishi Sunak’s government has <a href="https://publications.parliament.uk/pa/bills/cbill/58-03/0222/220222.pdf">announced plans to introduce new legislation</a> that would dramatically tighten restrictions on unions in England, Scotland and Wales.</p>
<p>The strikes (minimum service levels) bill, currently being debated in parliament, would mean that people working in border security, education, the fire brigade, transport, the NHS and nuclear decommissioning would have to maintain minimum levels of service on strike days. So some teachers or nurses, for example, would be expected to work, regardless of whether they are a union member or not.</p>
<p>The language of the bill suggests that sweeping powers will be given to employers to determine what the minimal service level will be on any given strike day, and even who constitutes a key worker and should therefore be required to work. Unions would be expected to ensure their members are meeting these minimal levels of service. </p>
<p>Unions could be taken to court and forced to pay for an employers’ losses caused by strike action. And if a strike compromises the minimum level of service, those continuing to observe the action would be doing so illegally. Someone going on strike would therefore not receive legal protections, such as from being fired, if they went on strike under these conditions. Their employer could consider them in breach of their contract and personally liable.</p>
<p>The definitions given for key workers and minimum service levels in the bill are quite broad, and give employers the ability to decide who and what qualifies. For example, in a hospital, aside from doctors and nurses, cleaning and administration staff could also be declared key workers, and forced to maintain minimal service levels. </p>
<p>There would be nothing to stop a rail company declaring all scheduled services as essential, effectively stopping members from striking at all. As employers get to decide which individual workers they see as vital, they could choose to name union members only, although this may count as trade union victimisation, illegal under the <a href="https://www.legislation.gov.uk/ukpga/1992/52/contents">Trade Union and Labour Relations (Consolidation) Act 1992</a>. </p>
<h2>The government line</h2>
<p>The government says the legislation brings the UK into line with other countries and that it makes sense to promise minimum safety levels in key services during strike action. The bill also suggests that while unions will have a consultative role on who and what constitutes minimum service, the ultimate decision will rest with employers. </p>
<p>Some unions already have voluntary agreements in place with employers to maintain safety. For example, the Royal College of Nursing will offer <a href="https://www.rcn.org.uk/Get-Involved/Campaign-with-us/Fair-Pay-for-Nursing/Latest-updates/Industrial-action-FAQs">“derogations”</a> to certain members, effectively giving them permission to continue working to “maintain life preserving care”, with the number of derogations negotiated directly with employers. </p>
<p>The new bill would formalise that negotiation in law – but on terms heavily favouring the employer.</p>
<p>However, there is no law in place to ensure minimum levels of service on non-strike days. This suggests that the aim of the bill is to further restrict trade union power rather than to ensure essential industries continue running or that minimal levels of safety are met.</p>
<p>The government may believe that introducing such restrictions on unions would not only show a tough line on unions by restricting their ability to take disruptive strike action but also show a commitment to the delivery of key services they believe the public consider vital. </p>
<p>This new bill only serves to further worsen employer-union relations. It fails in its wider mission of improving overall service levels, especially on non-strike days. Rather than address union concerns over pay and conditions, it instead seeks to silence them through legal threats. </p>
<h2>Raising an already worryingly high bar</h2>
<p>Under the current Trade Union Act 2016, unions must already meet certain benchmarks. There must be a 50% turnout in a union’s vote on industrial action for a mandate to strike to be valid, for example. </p>
<p>This effectively weaponises worker indifference. If 49 out of 100 union members voted in favour of a strike, and the other 51 did not show up to vote, then the mandate would not be legal. Thresholds are even higher in “important public services” such as health, education, and transport. Besides achieving a 50% turnout, 40% of eligible voters also need to vote in support of action. So, at least 50 out of 100 would need to vote, and 40 of those 50 would also need to vote in favour.</p>
<p>If passed, this new bill would place an even tighter straitjacket upon unions. Even with a legal mandate to take strike action, employers will have the legal power to determine who counts as a key worker and what constitutes a minimum service. </p>
<p>Despite unions have a consultative role, members and non-members could still be forced to work on strike days, effectively neutralising the mandate and undermining a worker’s right to join a trade union and withdraw their labour. Many will be forced to work, with the threat of dismissal and personal prosecution for failing to do so hanging over them.</p>
<h2>Is this what the public wants?</h2>
<p>Politically, Sunak’s tough line on unions echoes that of Conservatives dating back to the 1970s. However, the political environment then was different. <a href="https://www.jstor.org/stable/193543">Research</a> found 80.9% of voters believed unions were too powerful in 1974, declining to 45.5% by 1987. </p>
<p>Similar data from YouGov found that the figure was as <a href="https://yougov.co.uk/topics/politics/trackers/are-trade-unions-able-to-take-strike-too-easily">low as 25%</a> in December 2021, rising to only 34% in November 2022, even after months of attempts from the government to paint them as such. This suggests that despite Sunak’s efforts to portray unions as out-of-control, voters are not on the same page.</p><img src="https://counter.theconversation.com/content/197482/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Steven Daniels is a member of the University and College Union (UCU).</span></em></p>The strikes (minimum service levels) bill making its way through parliament potentially means employers can block named workers from taking industrial action.Steven Daniels, Lecturer in Law and Politics, Edge Hill UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1958042022-12-07T19:05:17Z2022-12-07T19:05:17ZWage theft has reached pandemic proportions, so why hasn’t the Albanese government criminalised it?<figure><img src="https://images.theconversation.com/files/499387/original/file-20221206-16-tqmk5.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C4493%2C2915&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Australia’s first criminal case over wage theft is under way, with charges laid against the owner of a Victorian restaurant that <a href="https://www.abc.net.au/news/2022-11-29/macedon-lounge-restaurant-charged-victoria-wage-theft-laws/101710104">allegedly underpaid</a> staff by thousands of dollars. </p>
<p>If found guilty, the owner of the Macedon Lounge, northwest of Melbourne, faces a fine of more than $1 million and potentially jail time under Victoria’s <a href="https://www.legislation.vic.gov.au/as-made/acts/wage-theft-act-2020">Wage Theft Act</a>.</p>
<p>The law came into effect in July 2021. The Andrews Labor government promised it before the 2018 state election, as evidence mounted that existing civil penalty fines were not a sufficient deterrent. </p>
<p>This week Unions NSW called for national action <a href="https://www.unionsnsw.org.au/wage-theft/#:%7E:text=If%20you%20think%20you%20are,to%20speak%20with%20a%20translator.">in a report</a> on underpayment of migrant workers. This was based on an audit of job advertisements on Chinese, Korean, Nepalese, Punjabi and Spanish websites. It found 70% offered less than minimum rates.</p>
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Read more:
<a href="https://theconversation.com/weve-let-wage-exploitation-become-the-default-experience-of-migrant-workers-113644">We've let wage exploitation become the default experience of migrant workers</a>
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<p>The Albanese government also made a pre-election promise to criminalise wage theft, as part of its <a href="https://www.alp.org.au/policies/secure-australian-jobs">Secure Australian Jobs Plan</a>:</p>
<blockquote>
<p>Wage theft rips more than $1 billion off Australian workers each year. The Morrison government doesn’t think it’s a problem, but Labor does, and we will make wage theft a crime at a national level.</p>
</blockquote>
<p>This was left out of the omnibus amendments to the Fair Work Act passed last week. It’s unclear whether the government will pursue this further in its first term. </p>
<p>But criminalisation may not be the best approach. Other reforms are just as important.</p>
<h2>Now a broad-scale problem</h2>
<p>It is clear wage theft and other forms of non-compliance with minimum labour standards are a major problem in Australia. </p>
<p>Prominent employers that have underpaid workers or been accused of non-compliance include restaurants <a href="https://theconversation.com/all-these-celebrity-restaurant-wage-theft-scandals-point-to-an-industry-norm-131286">owned by celebrity chefs</a> Heston Blumenthal, Shannon Bennett, George Calombaris and Neil Perry; franchises <a href="https://www.abc.net.au/news/2022-04-06/7-eleven-wage-theft-98-million-franchisees-class-action/100970682">7-Eleven</a>, <a href="https://www.abc.net.au/news/2017-08-11/fair-work-ombudsman-slams-pizza-hut-underpayment-newcastle/8796896">Pizza Hut</a> and <a href="https://thenewdaily.com.au/finance/finance-news/2022/11/02/dominos-wage-theft-class-action/">Domino’s</a>; and blue-chip companies <a href="https://insideretail.com.au/news/bunnings-coughs-up-over-3-8-million-to-underpaid-team-members-201911">Bunnings</a>, <a href="https://insideretail.com.au/business/fwo-takes-coles-to-court-over-alleged-115m-in-underpayments-202112">Coles</a>, <a href="https://www.smh.com.au/politics/federal/wages-watchdog-claims-cba-knowingly-breached-pay-rules-20211010-p58yqq.html">Commonwealth Bank</a>, <a href="https://www.smh.com.au/politics/federal/qantas-admits-underpaying-hundreds-of-staff-20200313-p549qg.html">Qantas</a> and <a href="https://thenewdaily.com.au/finance/finance-news/2022/02/23/woolworths-underpayments/">Woolworths</a>. Even institutions such as <a href="https://www.abc.net.au/news/2022-11-29/deakin-university-wage-theft-accusations/101709768">Deakin University</a> and <a href="https://www.smh.com.au/politics/federal/abc-admits-it-has-underpaid-up-to-2500-casual-staff-over-six-years-20190110-p50qk5.html">the ABC</a> have been implicated. </p>
<p>The issue has been the focus of numerous public inquiries, reviews and consultations and media investigations. </p>
<p>A Senate committee inquiry into wage theft that <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Underpaymentofwages/Report/section?id=committees%2freportsen%2f024434%2f79506">reported in March 2022</a> noted wage theft goes back at least to the 1880s, with the rampant stealing of Indigenous wages. </p>
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Read more:
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<p>But wage theft on a broad scale, the inquiry concluded, is a relatively new phenomenon:</p>
<blockquote>
<p>The rate of unlawful underpayment complaints and media reporting increased markedly from around 2015, with mounting evidence that wage theft practices have become widespread in the hospitality, retail, horticulture, franchise-heavy and higher education sectors.</p>
</blockquote>
<h2>Workers most vulnerable</h2>
<p>The workers most vulnerable are migrants on temporary visas, young people, those in “low-skilled” jobs, non-unionised employees, and those in casual and insecure work (the reason for its prevalence in higher education). </p>
<p>The problem is intensified by “fragmented” employment arrangements that obscure who profits from non-compliance, such as labour hire chains featuring multi-layered subcontracting and outsourcing arrangements, or on-demand platform “gig” work.</p>
<p>As Alan Fels, former chair of the Australian Consumer and Competition Commission, <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Education_and_Employment/ExploitationofCleaners/Report">has pointed out</a>, wage theft makes it hard for compliant employers to compete.</p>
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Read more:
<a href="https://theconversation.com/shocking-yet-not-surprising-wage-theft-has-become-a-culturally-accepted-part-of-business-121038">Shocking yet not surprising: wage theft has become a culturally accepted part of business</a>
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<p>It also affects government revenue – for example, in cases where payroll tax is avoided by having staff “off the books”. </p>
<h2>Call for criminalisation</h2>
<p>The 2022 Senate inquiry made 19 recommendations. The first was that the federal government amend the Fair Work Act to make any form of remuneration theft – including failing to pay employees their rightful loadings, penalty rates, overtime, leave, allowances and superannuation – a criminal offence. (The second recommendation was that it increase civil penalties.)</p>
<p>Criminal sanctions may elevate awareness and provide another avenue for redress, but whether they would foster greater employer compliance is doubtful. </p>
<p>This is because these would only apply to deliberate breaches, when many cases of non-compliance involve genuine and unintentional mistakes. </p>
<p>Nor will criminal sanctions do anything to assist employees to easily seek redress, given they are about punishment and not compensation. </p>
<h2>There are other, better approaches</h2>
<p>A better approach is to focus on enhanced enforcement, expanding the role of the Fair Work Ombudsman and and other regulatory agencies to investigate, enforce and recover unpaid money, with significant extra resources to do so. </p>
<p>This a key part of the Victorian legislation, which has established the <a href="https://www.vic.gov.au/wage-inspectorate-victoria">Work Inspectorate of Victoria</a> with resources to investigate and enforce the law.</p>
<p>Another reform would be to oblige employers – particularly those in high-risk sectors – to have ongoing compliance regimes in place and to regularly review their payroll processes to ensure compliance. </p>
<p>Finally, as recommended by the Senate inquiry report, there should be a clear avenue for the Australian Securities and Investments Commission to disqualify directors of companies found to have engaged in systemic non-compliance.</p>
<p>Perhaps then the message will start to get through.</p><img src="https://counter.theconversation.com/content/195804/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Giuseppe Carabetta does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Federal Labor made an election promise to criminalise wage theft. But there are better reforms more urgently needed.Giuseppe Carabetta, Associate Professor, University of Technology SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1958142022-12-05T19:05:01Z2022-12-05T19:05:01ZPay secrecy clauses are now banned in Australia; here’s how that could benefit you<figure><img src="https://images.theconversation.com/files/498903/original/file-20221205-26-6ww2mo.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C5463%2C2719&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Do you work for an organisation that treats pay information like a state secret? Do you know what your coworkers get paid? Can you tell others what you earn?</p>
<p>Well, now you can, following the passing of the Albanese government’s “Secure Jobs, Better Pay Bill” reform package, which includes a ban on pay secrecy policies.</p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/what-the-compromise-ir-deal-means-for-wage-negotiations-and-pay-rises-195545">What the compromise IR deal means for wage negotiations, and pay rises</a>
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<p>The ban is primarily aimed at reducing gender-based pay differences – part of a larger suite of reforms that make gender equity a key principle of the Fair Work Act. </p>
<p>But there’s also reason to believe it should benefit other disadvantaged workers in both individual and collective pay negotiations. </p>
<h2>Secrecy and the gender pay gap</h2>
<p>The gender pay gap in Australia is <a href="https://www.wgea.gov.au/publications/australias-gender-equality-scorecard">currently 22.8%</a>. According to federal employment and workplace relations minister Tony Burke, pay secrecy clauses have long been used to <a href="https://ministers.dewr.gov.au/burke/secure-jobs-better-pay-bill">conceal gender pay discrepancies</a>:</p>
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<p>Banning them will improve transparency and reduce the risk of gender pay discrimination by allowing women to compare their pay with that of their co workers. Differences can be discussed with their manager without fear of punishment.</p>
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<p>International evidence support Burke’s claim. Studies in <a href="https://cep.lse.ac.uk/pubs/download/dp1750.pdf">the United Kingdom</a>, <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/irel.12109">the United States</a>, <a href="https://www.nber.org/system/files/working_papers/w25834/w25834.pdf">Canada</a> and <a href="https://www.nber.org/system/files/working_papers/w25435/w25435.pdf">Denmark</a> all report a decline in the gender pay gap as a result of legislation to promote pay transparency.</p>
<p><a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/irel.12109">US research</a> shows women’s wages in states prohibiting pay secrecy clauses are 4-12% higher (depending on how the data was analysed) than in states that allow secrecy clauses.</p>
<p>In Canada, <a href="https://www.nber.org/system/files/working_papers/w25834/w25834.pdf">pay secrecy law</a> reduced the gender pay gap between men and women by 20-40% (again depending on how data was analysed).</p>
<p>These findings are supported by studies of organisations that have dropped pay secrecy policies. A <a href="https://psycnet.apa.org/record/2015-15486-001">2019 study</a> covering approximately 9,000 US employees found women’s annual pay growth was 0.4% lower than for men under pay secrecy. This gap disappeared with greater transparency.</p>
<p>It’s possible that just ending secrecy clauses is enough to improve outcomes even without people disclosing how much they earn – that the prospect of pay information being shared is enough to focus an organisation on ensuring fair and equitable remuneration.</p>
<p>Secrecy, by contrast, means managers can make decisions <a href="https://journals.sagepub.com/doi/abs/10.1177/1548051812455240">they don’t have to justify</a> to employees. This heightens the risk of unconscious bias, favouritism, discrimination and stereotyping affecting pay decisions.</p>
<figure class="align-center ">
<img alt="Private and confidential letter" src="https://images.theconversation.com/files/498815/original/file-20221204-17-am0rvf.jpg?ixlib=rb-1.1.0&rect=0%2C288%2C4585%2C2268&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/498815/original/file-20221204-17-am0rvf.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/498815/original/file-20221204-17-am0rvf.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/498815/original/file-20221204-17-am0rvf.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/498815/original/file-20221204-17-am0rvf.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/498815/original/file-20221204-17-am0rvf.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/498815/original/file-20221204-17-am0rvf.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Studies shows pay secrecy contributes to the pay gender gap.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
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<h2>What about conflict?</h2>
<p>Not everyone wants to share their pay information. Some people are self-conscious about how it will affect their image. Some worry it will <a href="https://www.semanticscholar.org/paper/The-Pay-Transparency-Dilemma%3A-Development-and-of-Smit-Montag%E2%80%90Smit/3b5739795bde4cf1f6fb011efd2a607d6e87bb02">affect work relationships</a>.</p>
<p>It may be upsetting for coworkers in a similar role to discover they are paid less than you. It is even more upsetting to find out you’re paid less than them.</p>
<p>Employers argue that pay secrecy is needed to <a href="https://psycnet.apa.org/record/2015-54815-005">minimise conflict between employees</a>. This is based on the “<a href="https://www.journals.uchicago.edu/doi/abs/10.1086/519540">jealousy hypothesis</a>”, which says that employees reduce their work effort when they find out they are paid less than a colleague. </p>
<p>But such claims are overstated. In fact, employees are more likely to view restrictions on sharing pay information <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/1748-8583.12292">with suspicion</a> and as something driven by managerial self-interest, not the best interest of the employees. </p>
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Read more:
<a href="https://theconversation.com/wages-and-women-top-albaneses-ir-agenda-the-big-question-is-how-labor-keeps-its-promises-183527">Wages and women top Albanese's IR agenda: the big question is how Labor keeps its promises</a>
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<p>This is borne out by research showing pay secrecy leads workers to <a href="https://www.nber.org/system/files/working_papers/w24841/w24841.pdf">underestimate supervisors’ pay</a> (but overestimate coworkers’ pay).</p>
<p>Most employees deserve to be given more credit. The research shows they <a href="https://www.semanticscholar.org/paper/Reconsidering-Pay-Dispersion%27s-Effect-on-the-of-and-Trevor-Reilly/82a405461b4a5c578d3b157d375a7c81eddbacc1">understand and accept</a> pay differences that can be explained and justified according to work contribution and performance. </p>
<p>Further, studies report that greater pay transparency is associated with <a href="https://www.sciencedirect.com/science/article/abs/pii/S0014292117301162">higher employee performance</a> and <a href="https://journals.sagepub.com/doi/abs/10.1177/0886368719833215">job satisfaction</a>.</p>
<h2>Where to now?</h2>
<p>While the ban on secrecy clauses is primarily aimed at reducing the gender pay gap, it could deliver positive pay outcomes for other disadvantaged employees as well. </p>
<p>It’s a fundamental principle of economics that sharing of information contributes to more efficient markets. Removing pay secrecy therefore contributes to a more efficient labour market. </p>
<p>Bargaining freely with full information, employees are able to assess their employment options and make better informed choices. The decisions of individuals encourage organisations to ensure they have fair and equitable pay systems. </p>
<p>This should lead to greater fairness for all.</p><img src="https://counter.theconversation.com/content/195814/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michelle Brown had received funding from the Australian Research Council.</span></em></p><p class="fine-print"><em><span>Leanne Griffin does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The Albanese government’s pay secrecy ban is meant reduce gender-based pay differences. It could help others too.Michelle Brown, Professor, Human Resource Management, The University of MelbourneLeanne Griffin, PhD, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1955452022-11-30T19:10:14Z2022-11-30T19:10:14ZWhat the compromise IR deal means for wage negotiations, and pay rises<p>The Albanese government’s <a href="https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6941">Secure Jobs, Better Pay Bill</a> is all set to become law, after Workplace Relations Minister Tony Burke <a href="https://www.abc.net.au/news/2022-11-27/industrial-relations-laws-set-to-pass-parliament/101703572">revealed amendments</a> to secure the support of the Greens and ACT independent David Pocock in the Senate.</p>
<p>The government and the trade union movement see the bill as crucial to <a href="https://www.futurework.org.au/restoring_collective_bargaining_coverage_would_boost_wage_growth">reinvigorating collective bargaining</a> and lifting wages, especially for lower-paid workers.</p>
<p>Much of the debate has focused on what the bill does with multi-employer agreements – and many of the government’s concessions concern that issue.</p>
<p>But if the <a href="https://www.futurework.org.au/wages_crisis_will_continue_without_active_wage_boosting_policies_report">wage stagnation of the past decade</a> is to be overcome, it will likely be through less-heralded reforms.</p>
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Read more:
<a href="https://theconversation.com/zombie-wage-deals-have-hurt-australians-for-years-heres-how-new-industrial-relations-laws-could-finally-end-your-wage-pain-195534">'Zombie' wage deals have hurt Australians for years. Here's how new industrial relations laws could finally end your wage pain</a>
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<h2>Multi-enterprise agreements</h2>
<p>While there is <a href="https://theconversation.com/why-unions-and-small-business-want-industry-bargaining-from-the-jobs-summit-and-big-business-doesnt-189394">much to be said</a> for industry or sector-wide wage agreements, the Fair Work Act does not allow them, and that will not change under the bill. Unrelated employers can choose to make a “multi-enterprise agreement”. But they cannot be required to bargain and few such agreements are made.</p>
<p>The bill offers the option of two new types of multi-enterprise agreement: supported bargaining agreements, and single-interest employer agreements. Both will require authorisation from the Fair Work Commission before formal bargaining can commence. </p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/a-mandate-for-multi-employer-bargaining-without-it-wages-for-the-low-paid-wont-rise-193829">A mandate for multi-employer bargaining? Without it, wages for the low paid won't rise</a>
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<h2>Supported bargaining</h2>
<p>The supported bargaining system will replace the largely unused provisions for “<a href="https://theconversation.com/a-mandate-for-multi-employer-bargaining-without-it-wages-for-the-low-paid-wont-rise-193829">low-paid bargaining</a>”. </p>
<p>It is intended for industries in which (single) enterprise bargaining has proved difficult, such as child care or aged care. The Fair Work Commission must be satisfied it is appropriate for the nominated employers to bargain together, having regard to existing pay and conditions, and any identifiable common interest (for example, being reliant on government funding).</p>
<h2>Single-interest bargaining</h2>
<p>The single-interest bargaining stream is potentially broader. </p>
<p>It can apply in any sector other than commercial construction (now specifically excluded from all types of multi-enterprise agreement). However, a combination of the original drafting and subsequent concessions will make it difficult for unions to gain a single-interest authorisation.</p>
<p>Unions will not be able to rope in small business employers (to be defined as those with fewer than 20 regular employees) without their consent.</p>
<p>A larger employer can only be included without their consent if a majority of its affected employees want to bargain.</p>
<p>Employers of any size can only participate if they are sufficiently “comparable” to be regarded as having a common interest.</p>
<p>An employer cannot be included if it has a current single-enterprise agreement, or is negotiating a replacement for one that expired in the previous nine months.</p>
<p>No authorisation will be granted unless the Fair Work Commission is satisfied it is in the public interest.</p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/employers-say-labors-new-industrial-relations-bill-threatens-the-economy-denmark-tells-a-different-story-193311">Employers say Labor's new industrial relations bill threatens the economy. Denmark tells a different story</a>
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<h2>The pathways to agreement</h2>
<p>If a union can gain permission to pursue one of the new types of multi-enterprise agreement, it will be able to draw on supports for bargaining that were not there under the current law. </p>
<p>Employers named in a supported bargaining or single-interest authorisation would be obliged to bargain in good faith. </p>
<p>Employees with a bargaining representative could take industrial action – although only if approved in a ballot of represented employees at their workplace.</p>
<p>The Fair Work Commission could assist the parties to reach agreement. In the case of supported bargaining, that might include requiring the involvement of a head contractor or funding body with a “degree of control” over workers’ pay and conditions.</p>
<p>Most significantly – and as with prolonged negotiations for a single-enterprise agreement – the commission could resolve an “intractable” bargaining dispute by arbitration. Just the threat of such intervention should improve the chances of gaining agreement. </p>
<p>This, arguably, is the biggest reform to bargaining in the bill.</p>
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<p><iframe id="yTZf0" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/yTZf0/1/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
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<h2>So when do the wage rises happen?</h2>
<p>It will take time to test out the new provisions. </p>
<p>Meeting the onerous requirements for a single-interest authorisation will be difficult, except for employers already bargaining together (such as franchisees or faith-based schools).</p>
<p>If a union can secure majority support at a particular enterprise, it can probably already bargain there. </p>
<p>Any attempt to let existing deals expire and then shift to multi-employer bargaining may be met by public-interest objections – unless the employers concerned also see value in a more collective approach.</p>
<p>Supported bargaining has a greater chance of taking off, especially in low-paid industries where employers may support higher pay if assured of not being at a competitive disadvantage.</p>
<h2>Other pathways</h2>
<p>The bill offers other routes to higher wages, through “work value” adjustments to award rates, and improved access to equal remuneration orders. That focus on pay equity, also evident in the bill’s prohibition of pay secrecy clauses, may prove just as useful in delivering wage rises for feminised sectors.</p>
<p>More generally, the bill seeks to simplify the process of making enterprise agreements and getting them approved. </p>
<p>This includes changes to the “better off overall test”, which ensures negotiated pay and conditions are set above the award minimum, not below. (The government has agreed to fix a drafting problem that might have created a <a href="https://www.afr.com/work-and-careers/workplace/bargaining-bill-loophole-could-cut-pay-for-new-hires-union-20221102-p5buv1">loophole for employers to exploit</a>.)</p>
<p>Overall, the Secure Jobs, Better Pay Bill may speed up some bargaining processes and, over time, help reverse the <a href="https://theconversation.com/theres-one-big-reason-wages-are-stagnating-the-enterprise-bargaining-system-is-broken-and-in-terminal-decline-183818">trend away from agreement-making</a>. </p>
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<strong>
Read more:
<a href="https://theconversation.com/theres-one-big-reason-wages-are-stagnating-the-enterprise-bargaining-system-is-broken-and-in-terminal-decline-183818">There's one big reason wages are stagnating: the enterprise bargaining system is broken, and in terminal decline</a>
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<p>But if real wage rises are to return, it will more likely be because governments are prepared to fund them – and employers are willing to trade some of their profits for economic growth.</p><img src="https://counter.theconversation.com/content/195545/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Andrew Stewart does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Despite the controversy over multi-employer bargaining, higher wages are likely to come from other provisions in the Albanese government’s Secure Jobs, Better Pay Bill.Andrew Stewart, John Bray Professor of Law, University of AdelaideLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1955342022-11-29T05:00:02Z2022-11-29T05:00:02Z‘Zombie’ wage deals have hurt Australians for years. Here’s how new industrial relations laws could finally end your wage pain<figure><img src="https://images.theconversation.com/files/497844/original/file-20221129-20-bcougd.png?ixlib=rb-1.1.0&rect=1192%2C381%2C2384%2C1374&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Independent Senator David Pocock will vote for the government's industrial relations bill.</span> <span class="attribution"><span class="source">Mick Tsikas/AAP</span></span></figcaption></figure><p>Imagine you were trying to design a system that would hold back wages. You would design one pretty much like the one we’ve got today. </p>
<p>That’s why the government wants to change it.</p>
<p>Those of us on <a href="https://www.fairwork.gov.au/tools-and-resources/fact-sheets/rights-and-obligations/enterprise-bargaining">enterprise bargaining</a> agreements get our wage rises locked in only every three or so years. If we didn’t lock in enough in last year’s agreement to cover this year’s sudden outbreak of inflation, there’s nothing much we can do about it for another two or so years.</p>
<p>It’s a built-in inertia identified by financial services firm JP Morgan in its attempts to explain to foreign clients why Australian wages growth is so low. </p>
<p>Australian enterprise agreements, JP Morgan explains in a <a href="https://markets.jpmorgan.com/research/email/lbkdv6h1/Tny3gAthm_em5y6E4Rjnag/GPS-4271004-0">note to clients</a>, both delay wages growth and trim its peaks.</p>
<p>Here’s how that came about – and how the Albanese government’s new industrial relations law might finally end Australians’ pay freeze.</p>
<h2>Wages used to be mostly set by awards</h2>
<p>For nearly a century, Australian wages were generally set by judges in state and federal industrial relations tribunals. They had the power to intervene and set an “<a href="https://treasury.gov.au/sites/default/files/2019-03/p2017-t237966.pdf">award</a>” wage for an industry or occupation in which there was a dispute. And it was easy enough for unions and employers to create disputes.</p>
<p>Because they almost always intervened, the tribunals got to ensure that wages didn’t move too much relative to each other, and it got an insight into the state of the economy from the government, which made submissions. </p>
<p>From one point of view, the strength of this peculiarly Australian system of setting wages was that each employer covered by a decision was compelled to deliver the same increase as its competitors, meaning none were disadvantaged.</p>
<p>From another point of view, this strength was becoming a weakness. The weak firms as well as the strong had to pay the increases, whether it was easy or not.</p>
<h2>Enterprise agreements unleashed productivity</h2>
<p>In the early 1990s, perhaps with an eye to the possibility that an incoming Coalition government might make even greater changes, the Keating Labor government changed the law to channel the workers and employers within each workplace into enterprise bargaining.</p>
<p>The tribunals would have a more limited role, checking that each enterprise agreement passed a “better off overall” test, and continuing to set awards that became more like backstops, slipping below what most workers (usually through their unions) were able to negotiate with individual employers.</p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/employers-say-labors-new-industrial-relations-bill-threatens-the-economy-denmark-tells-a-different-story-193311">Employers say Labor's new industrial relations bill threatens the economy. Denmark tells a different story</a>
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<p>Workers and unions did well at first, because they were able to get together with employers and nut out ways to save money to pay for wage rises – something they had had little incentive to do when wages were set centrally.</p>
<p>And it was something that could only really be done at the level of each enterprise, because each was different, and it was the workers on the ground who knew how to make it better.</p>
<h2>Zombie agreements and frozen wages</h2>
<p>But productivity couldn’t be unleashed in the same way forever. After a while, the easy gains had been had. Workers got good pay rises in return for streamlining unwieldy processes at the start, then had few unwieldy processes left to streamline. </p>
<p>Productivity surged during the first decade, until the early 2000s. Then employers became more cautious about granting pay rises, and by the 2010s became good at stringing out negotiations or letting agreements expire, which meant they rolled over as “zombie agreements” without an increase.</p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/497815/original/file-20221129-19-22n4cd.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/497815/original/file-20221129-19-22n4cd.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/497815/original/file-20221129-19-22n4cd.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=968&fit=crop&dpr=1 600w, https://images.theconversation.com/files/497815/original/file-20221129-19-22n4cd.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=968&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/497815/original/file-20221129-19-22n4cd.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=968&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/497815/original/file-20221129-19-22n4cd.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1216&fit=crop&dpr=1 754w, https://images.theconversation.com/files/497815/original/file-20221129-19-22n4cd.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1216&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/497815/original/file-20221129-19-22n4cd.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1216&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Some Australians have ended up living with frozen wages.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
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<p>As the Business Council explained in a report on the state of enterprise bargaining
in 2019, agreements that had lapsed but were still operational came to act “<a href="https://d3n8a8pro7vhmx.cloudfront.net/bca/pages/4880/attachments/original/1565674049/The_state_of_enterprise_bargaining_in_Australia.pdf?1565674049">like a wage freeze for some employees</a>”.</p>
<p>With union membership down from 40% of workers when enterprise bargaining began, to just <a href="https://www.datawrapper.de/_/Ccsht/">14%</a> in 2020, there was little workers on frozen agreements could do to get more, other than fall back on awards, which at least usually climbed with inflation.</p>
<p>It means the system has come to work in a way hardly anyone actually intended. It is acting as a brake on pay rises, while becoming more centralised. </p>
<p>The Reserve Bank says it can see some signs that wages growth is picking up, even in new enterprise agreements, but that it will take some time to flow through to all agreements in general because of the “multi-year duration” of the agreements.</p>
<h2>How the new law could break the pay freeze</h2>
<p>What the Albanese government has proposed – and is about to finally get through the Senate with the help of the Greens and independent David Pocock – is an attempt to bust the inertia. </p>
<p>Expanding <a href="https://www.dewr.gov.au/secure-jobs-better-pay/resources/cooperative-workplaces-bargaining-stream">multi-employer bargaining</a> will allow employers to bargain knowing their competitors will have to pay what they pay. </p>
<p><a href="https://www.afr.com/work-and-careers/workplace/manufacturers-move-on-sector-deal-amid-race-to-bolster-union-hurdles-20221128-p5c1u0">Air-conditioning manufacturers</a> have already begun talks with the Australian Manufacturing Workers Union in a bid to drive up workplace standards and pay in a way they know won’t be undercut by cheaper competitors.</p>
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Read more:
<a href="https://theconversation.com/what-the-compromise-ir-deal-means-for-wage-negotiations-and-pay-rises-195545">What the compromise IR deal means for wage negotiations, and pay rises</a>
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<p>Allowing employers with <a href="https://ministers.dewr.gov.au/burke/transcript-national-press-club-address">genuine ongoing enterprise agreements</a> to escape multi-employer bargaining will encourage more genuine agreements.</p>
<p>And loosening the “<a href="https://www.dewr.gov.au/secure-jobs-better-pay/resources/better-overall-test">better off overall</a>” test will make it easier to get agreements of all kinds registered. </p>
<p>Particularly helpful will be “<a href="https://www.dewr.gov.au/secure-jobs-better-pay/resources/supported-bargaining-stream">supported bargaining</a>”, in which the Fair Work Commission will sit around the table with workers in fields such as childcare, who have traditionally found it hard to bargain. Where necessary, the commission will pull in outside funders (such as the government for childcare) for talks.</p>
<p>None of it will work miracles. But it should help. And it’s unlikely to hurt.</p><img src="https://counter.theconversation.com/content/195534/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Peter Martin does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>For more than a decade, employers have strung out negotiations or let agreements expire. Known as “zombie agreements”, those deals mean too many Australians are living with wages frozen in the past.Peter Martin, Visiting Fellow, Crawford School of Public Policy, Australian National UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1954262022-11-28T19:04:29Z2022-11-28T19:04:29ZTwo thirds of Australian authors are women – new research finds they earn just $18,200 a year from their writing<figure><img src="https://images.theconversation.com/files/497571/original/file-20221128-22-ctbtk8.jpg?ixlib=rb-1.1.0&rect=0%2C22%2C7360%2C4880&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Most Australian book authors do not earn enough income from their creative practice to make ends meet. They rely on other jobs and other support, such as a partner’s income.</p>
<p>In the 2020-21 financial year, the average personal income in Australia was approximately $A70,000. Only one-third of authors earned this amount from all their sources of income combined. The average total income for authors, including all sources of income, was $64,900.</p>
<p>And the amount they earned from their books alone was far, far less.</p>
<p>In 2022, <a href="https://researchers.mq.edu.au/en/projects/2022-national-survey-of-australian-book-authors">we surveyed over 1,000 Australian book authors</a>.</p>
<p>We found the average annual income authors derive from practising as an author is $18,200. That’s an increase from $15,100 seven years ago (adjusted for inflation). But it’s a modest increase from a low base: it represents growth of less than 3% per annum over seven years.</p>
<p>Book writing is a profession dominated by women, who make up two thirds of all Australian authors. More than 80% of authors have attended university and almost half have completed a postgraduate degree – a high level of education that is not matched by high income.</p>
<p>In our survey (which followed up on <a href="https://theconversation.com/how-to-read-the-australian-book-industry-in-a-time-of-change-49044">an earlier 2015 study</a>), we asked Australian book authors about their income and how they allocate their time, the effect of the Covid-19 pandemic on their career, their relationships with their readers and publishers, and more. We wanted to find out what has changed in the last seven years – and whether conditions are improving for Australian authors.</p>
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Read more:
<a href="https://theconversation.com/how-to-read-the-australian-book-industry-in-a-time-of-change-49044">How to read the Australian book industry in a time of change</a>
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<h2>Authors’ earnings and ‘portfolio careers’</h2>
<p>If you are planning a career as an author, what could you expect to earn? </p>
<p>Education authors earned the highest average income from their practice as an author ($27,300), followed by children’s ($26,800) and genre fiction ($23,300) authors. Even though these figures are above the overall average for authors, they are not enough to live on, to support a family, or to pay rent or a mortgage.</p>
<p>At the other end of the spectrum are poets, who earned an average of $5,700 from their creative practice. Literary authors earned $14,500, which is a decrease in real terms since 2015. </p>
<p>To break this down, an author’s income from their creative practice includes advances from publishers, royalties on book sales, fees for live appearances, Public Lending Rights (PLR) and Education Lending Rights (ELR) paid by the government for the use of their work in libraries and educational institutions, prizes and fellowships, and rights sales for film, TV etc. </p>
<p>Artists’ careers are often known as “portfolio careers” – which sounds more glamorous than the bracing reality of juggling multiple commitments. Some authors have another career as a journalist, medical specialist, academic, teacher or public figure that provides their main source of income.</p>
<p>Several authors wrote about the uneven timing of income from their work. One literary author wrote:</p>
<blockquote>
<p>It’s difficult to capture the life and income of an author because for up to five years nothing might happen except writing, then for about 18 months there is a flurry of (a tiny amount) of cash and editing, and then a month or two of publicity.</p>
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Read more:
<a href="https://theconversation.com/white-female-and-high-rates-of-mental-illness-new-diversity-research-offers-a-snapshot-of-the-publishing-industry-189679">White, female, and high rates of mental illness: new diversity research offers a snapshot of the publishing industry</a>
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<h2>The difficulty of spending time to write</h2>
<p>We asked authors what prevents them from spending more time writing. Only 6% of authors reported no competing demands for their writing time. Domestic responsibilities affect almost two-thirds of trade authors (62%). One literary author wrote:</p>
<blockquote>
<p>I managed to devote regular time to writing alongside a full-time job pre-children but the addition of a baby (now toddler) to life has rendered those opportunities non-existent. I now meet my obligations to my publisher by taking annual and sometimes unpaid leave to work on my author duties. It has certainly slowed my career and I can no longer devote time to learning experiences, networking, or applications for prizes, grants and residencies.</p>
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<p>Insufficient income is a factor for over half of all authors. Some commented that their ability to spend time writing was enhanced by other sources of financial security. A creative non-fiction author commented:</p>
<blockquote>
<p>Having my first book published the year before I turned 60 meant I faced less financial issues due to owning my own home, superannuation and financial support from my partner. However, if I was less financially established it would be very difficult to live on what I make as an author.</p>
</blockquote>
<p>The financial insecurity inherent to the profession may contribute to the recognised lack of diversity of Australian authors: a <a href="https://www.smh.com.au/culture/books/fewer-than-1-in-10-aussie-books-published-by-people-of-colour-report-finds-20221013-p5bpj4.html">recent report</a> found only 7% of books published in 2018 were written by people of colour. As the UK Society of Authors <a href="https://www.societyofauthors.org/News/News/2019/May/Report-on-authors-earnings-diversity-implications">noted</a> a few years ago, “people from less privileged backgrounds who want to write are less likely to have additional sources of household income”.</p>
<p>In the 2022 survey, we heard from established, prize-winning authors – including some who’d had a bestselling book earlier in their career – who were contemplating no longer writing books, due to dwindling opportunities for mid-list writers.</p>
<p>We all stand to lose if established authors leave the profession. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/497454/original/file-20221127-22-pz0tzh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/497454/original/file-20221127-22-pz0tzh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/497454/original/file-20221127-22-pz0tzh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/497454/original/file-20221127-22-pz0tzh.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/497454/original/file-20221127-22-pz0tzh.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/497454/original/file-20221127-22-pz0tzh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/497454/original/file-20221127-22-pz0tzh.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/497454/original/file-20221127-22-pz0tzh.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">The financial insecurity of being a book author makes it harder to enter – or stay in – the profession.</span>
<span class="attribution"><span class="source">Daniel Thomas/Unsplash</span>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
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</figure>
<h2>Impact of the Covid-19 pandemic</h2>
<p>Like many Australians, the majority of authors experienced disruption and hardship due to the Covid-19 pandemic. Approximately one-third of authors reported large or modest increases in levels of financial stress.</p>
<p>Authors promote their books through live appearances in bookstores, schools, libraries, writers’ festivals and other events. Over half of authors experienced a reduction in promotional opportunities for their next book. One creative non-fiction author wrote:</p>
<blockquote>
<p>My book [was] released into closed bookstores and I still find myself questioning if there is anything I can do to improve sales, eight months on. It was, and is, devastating. </p>
</blockquote>
<p>The lockdowns meant that over one third of authors experienced a large decrease in income from paid appearances. </p>
<p>We found it difficult to identify a single factor that meant authors were negatively affected by the pandemic. A range of factors could be influential: whether an author lived in a state which experienced lengthy lockdowns, whether they had a book released (and if so, if they had an established large readership base or not), whether they had carer responsibilities (which could include elderly relatives as well as children), and whether they were experiencing financial stress. </p>
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<strong>
Read more:
<a href="https://theconversation.com/the-entire-industry-is-based-on-hunches-is-australian-publishing-an-art-a-science-or-a-gamble-189621">'The entire industry is based on hunches': is Australian publishing an art, a science or a gamble?</a>
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<h2>Small, good news – and what’s next?</h2>
<p>One piece of good news is that authors are 10% more likely to be satisfied with their main publisher than they were seven years ago. Nearly one-third (31.6%) of authors are very satisfied with their main publisher – an increase from just 19.6% in 2015.</p>
<p>Authors, large and small publishers, booksellers and libraries are working on joint initiatives to promote Australia’s reading culture in 2023. The industry awaits the federal government’s national cultural policy with anticipation.</p><img src="https://counter.theconversation.com/content/195426/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jan Zwar receives funding from the Australia Council for the Arts and the Copyright Agency Cultural Fund.</span></em></p><p class="fine-print"><em><span>David Throsby receives funding from the Australia Council for the Arts and the Copyright Agency Cultural Fund.</span></em></p><p class="fine-print"><em><span>Paul Crosby receives funding from the Australia Council for the Arts and the Copyright Agency Cultural Fund.</span></em></p>A new survey of Australian authors finds that while author incomes have (very slightly) grown, they remain perilously low – which makes it hard to find time to write.Jan Zwar, Faculty Research Manager, Macquarie UniversityDavid Throsby, Distinguished Professor of Economics, Macquarie UniversityPaul Crosby, Senior Lecturer, Department of Economics, Macquarie UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1951162022-11-22T07:13:12Z2022-11-22T07:13:12ZWord from The Hill: Industrial relations bill, Victoria’s election, and imminent report on Morrison’s multi-ministries<p>As well as her interviews with politicians and experts, Politics with Michelle Grattan includes “Word from The Hill”, where she discusses the news with members of The Conversation politics team.</p>
<p>In this podcast Michelle and politics + society editor Amanda Dunn canvass the final sitting weeks of parliament, in which the government is battling with crossbencher David Pocock to secure its industrial relations reforms. They also discuss the Victorian election, where much attention will be on how teals and other community independents fare. Finally, this week the government receives the report, from former high court judge Virginia Bell, on Scott Morrison’s extraordinary appointment to multi-ministries.</p><img src="https://counter.theconversation.com/content/195116/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>In this podcast Michelle Grattan & politics + society editor Amanda Dunn canvass the final sitting weeks of parliament, the Victorian election and the report into Scott Morrison's appointment to multiple ministries.Michelle Grattan, Professorial Fellow, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1947432022-11-17T05:35:18Z2022-11-17T05:35:18ZDeliveroo’s exit from Australia shows why gig workers need more protection<figure><img src="https://images.theconversation.com/files/495759/original/file-20221116-15-8m3al5.jpg?ixlib=rb-1.1.0&rect=0%2C1042%2C3955%2C1950&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Deliveroo’s decision to quit the Australian market, after what have been boom times for food delivery platforms, may seem surprising. But the writing has been on the wall for some time.</p>
<p>The British-based platform – one of the first to start operating in Australia – <a href="https://riders.deliveroo.com.au/en/news/20221116">announced yesterday</a> it was going into voluntary administration.</p>
<p>It cited “challenging economic conditions” and an inability to achieve “a sustainable position of leadership in the market” as key reasons for its decision. </p>
<p>Creditors must now await decisions by the appointed administrator, KordaMentha, about how much of the money they are owed will be paid. </p>
<p>Crucially, those potentially out of pocket include up to <a href="https://www.abc.net.au/news/2022-11-16/deliveroo-enters-voluntary-administration/101661932">15,000 couriers</a> who worked for the platform as independent contractors.</p>
<p>They are not officially employees, so they are not covered by the federal government’s <a href="https://extranet.employment.gov.au/feg%3C/u">Fair Entitlement Guarantee</a>, which ensures workers left in the lurch by an employer declaring insolvency can receive some of their unpaid wages, annual leave and other entitlements. </p>
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Read more:
<a href="https://theconversation.com/guilt-shame-dissatisfaction-workers-and-customers-on-the-gig-economy-and-how-to-make-it-better-185502">Guilt, shame, dissatisfaction: workers and customers on the gig economy (and how to make it better)</a>
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<h2>Challenging economic conditions</h2>
<p>Globally, Deliveroo has been exiting countries where it is not in a “sustainable position of leadership” — that is, effectively being one of the two largest players in the food delivery market. </p>
<p>It has already shut its operations in <a href="https://www.reuters.com/article/us-deliveroo-germany-idUSKCN1V215I">Germany</a> (2019), <a href="https://corporate.deliveroo.co.uk/media/deliveroo-announces-proposal-end-operations-spain/%3C/U">Spain</a> (2021), and <a href="https://corporate.deliveroo.co.uk/media/deliveroo-announces-decision-end-operations-netherlands/%3C/U">the Netherlands</a> (2022). </p>
<p>Deliveroo’s Australian operations were also considered a <a href="https://finance.yahoo.com/news/deliveroo-rises-announcing-exit-australia-033801039.html">drag on the UK company’s stock price</a>. Despite being among the first app-based food delivery platforms in Australia, beginning in 2015, it has not been in a market leading position since 2016-17.</p>
<p>It sought to differentiate itself as a niche player, working only with “high-quality” restaurants while promising quick deliveries to consumer. In Australia, though, this model struggled against competitors delivering from a greater variety of restaurants with more couriers making deliveries.</p>
<h2>Cutthroat market dynamics</h2>
<p>Deliveroo’s exit highlights the cutthroat market dynamics of the on-demand gig economy. </p>
<p>COVID-19 restrictions were a heyday for it and its fellow food delivery platforms (Uber, DoorDash, Foodora and Menulog).</p>
<p>Demand for food deliveries boomed during lockdowns. So did the supply of labour, as those laid off from other jobs — especially temporary migrants excluded from JobKeeper and JobSeeker benefits — sought alternative work. </p>
<p>But profits in boom times aren’t guaranteed to continue. Inflation is hitting consumers’ discretionary spending and the era of “<a href="https://www.cnbc.com/2022/05/18/what-comes-after-easy-money-era-ends-for-cash-burning-tech-companies.html">cheap money</a>” is ending. </p>
<p>Platforms have often had to offer their services at a loss to increase or sustain market share. This is in part because consumers of food delivery services are highly price-sensitive, as our <a href="https://doi.org/10.1016/j.jocm.2020.100254">research has found</a>. </p>
<h2>Greater regulation coming</h2>
<p>Another key local factor likely to have influenced Deliveroo’s decision is the prospect of greater regulation.</p>
<p>The Albanese government has promised to improve conditions for gig workers. This includes <a href="https://treasury.gov.au/sites/default/files/inline-files/Jobs-and-Skills-Summit-Outcomes-Document.pdf">legislation</a> to give the federal industrial relations umpire, the Fair Work Commission, the power to regulate “employee-like” forms of work. </p>
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Read more:
<a href="https://theconversation.com/how-australias-gig-workers-may-remain-contractors-under-labor-186197">How Australia's gig workers may remain contractors under Labor</a>
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<p>Currently the commission can only adjudicate on matters affecting employees. The government’s approach is to avoid the seemingly endless classification debates and instead provide all workers with greater protections.</p>
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Read more:
<a href="https://theconversation.com/an-employee-not-a-contractor-unfair-dismissal-ruling-against-deliveroo-is-a-big-deal-for-australias-gig-workers-161173">An employee, not a contractor: unfair dismissal ruling against Deliveroo is a big deal for Australia's gig workers</a>
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<p>Giving platform workers greater benefits and protections as employee-like workers – in whatever form this takes – will increase costs. But Deliveroo’s exit highlights just why greater protection for workers in the “gig” economy is needed. </p>
<p>It’s now up to the Albanese government to make meaningful, innovative reforms.</p><img src="https://counter.theconversation.com/content/194743/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Alex Veen is part of a research team that received a University of Sydney Business School Industry Partnership grant. Uber Technologies is a Partner Organisation on this grant and provided a minority financial contribution to the project. He further receives funding from the Australian Research Council in the form a Discovery Early Career Researcher Award (DECRA) for his project entitled 'Algorithmic management and the future of work: lessons from the gig economy.'</span></em></p><p class="fine-print"><em><span>Caleb Goods is part of a research team that received a University of Sydney Business School Industry Partnership grant. Uber Technologies is a Partner Organisation on this grant and provided a minority financial contribution to the project.</span></em></p><p class="fine-print"><em><span>Tom Barratt has been awarded a Discovery Early Career Researcher Award from the Australian Research Council to investigate Work Fragmentation and the Gig Economy, commencing in 2023.
Tom Barratt is part of a research team that received a University of Sydney Business School Industry Partnership grant. Uber Technologies is a Partner Organisation on this grant and provided a minority financial contribution to the project.</span></em></p>Deliveroo says it has been unable to achieve a sustainable position in the Australian market.Alex Veen, Senior Lecturer and DECRA Fellow, University of SydneyCaleb Goods, Senior Lecturer - Management and Organisations, UWA Business School, The University of Western AustraliaTom Barratt, Senior lecturer, The University of Western AustraliaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1938292022-11-13T19:03:41Z2022-11-13T19:03:41ZA mandate for multi-employer bargaining? Without it, wages for the low paid won’t rise<figure><img src="https://images.theconversation.com/files/493179/original/file-20221103-22-qh3t43.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C5760%2C2931&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>“The fact is that the government that I lead was elected with a mandate to increase people’s wages,” Prime Minister Anthony Albanese <a href="https://www.abc.net.au/news/2022-11-10/labor-industrial-relations-mandate-multi-employer-bargaining/101635488">told the House of Representatives</a> last week, as parliament debated the government’s bill to increase access to multi-employer collective bargaining.</p>
<p>The bill passed the lower house last Thursday, after the government made changes that Employment Relations Minister Tony Burke said would ensure the “primacy” of enterprise bargaining. Further concessions may be needed to pass the Senate.</p>
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Read more:
<a href="https://theconversation.com/grattan-on-friday-government-throws-everything-at-securing-workplace-reforms-before-christmas-but-pocock-keeps-it-guessing-194348">Grattan on Friday: Government throws everything at securing workplace reforms before Christmas but Pocock keeps it guessing</a>
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<p>Employer groups argue the multi-employer bargaining provisions could return Australia to a 1970s-style system with high levels of industrial conflict. They claim it will lead unions to use sector-wide industrial action to achieve their goals. </p>
<p>Importantly, the Council of Small Business Organisations of Australia, which supports multi-employer bargaining in principle, has ended up opposing Labor’s provisions, saying they<a href="https://www.cosboa.org.au/post/cosboa-ir-statement-27-october-2022">make the system more complex</a>. </p>
<p>Nonetheless, Albanese has a point about Labor having a mandate. </p>
<p>He never made an explicit promise to expand multi-employer bargaining. He didn’t campaign on it. But he did promise <a href="https://theconversation.com/wages-and-women-top-albaneses-ir-agenda-the-big-question-is-how-labor-keeps-its-promises-183527">to lift stagnating wages</a> – particularly for those in low-paid, feminised sectors – and his government cannot deliver on that without fixing a broken industrial relations system.</p>
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<h2>Provisions already exist</h2>
<p>Multi-employer agreements are, in fact, meant to occur now, under the Fair Work Act passed by the Rudd Labor government in 2009.</p>
<p>The act <a href="https://www.fwc.gov.au/low-paid-authorisations">empowers</a> the industrial relations umpire (known as Fair Work Australia until 2013, now the Fair Work Commission) to authorise multi-employer bargaining in sectors where employees are low-paid and “have not had access to collective bargaining or who face substantial difficulty bargaining at the enterprise level”.</p>
<p>The Rudd government included these provisions – known as the Low-Paid Bargaining Stream – because of the evidence that wages and conditions in areas such as child care, aged care, community services, security and cleaning had <a href="http://www.ilera-directory.org/15thworldcongress/files/papers/Track_2/Thur_W4_VAN%20WANROOY.pdf">stagnated under single-enterprise bargaining</a>.</p>
<p>Workers in these areas were disadvantaged by a range of factors. There were high rates of casual and part-time employment. Many employers were small or medium-sized, with limited resources and skills for bargaining. </p>
<p>In child care and aged care, wages were effectively set by a third party – the federal government, the main funder of services. Care workers were also more <a href="https://theconversation.com/labors-pledge-to-properly-pay-women-and-care-workers-is-a-start-but-it-wont-be-easy-182853">reticent to strike</a> as part of the bargaining process, because of the effect on clients.</p>
<h2>But they just don’t work</h2>
<p>In 12 years of the Fair Work Act, however, its multi-employer provisions have not led to a single bargain. </p>
<p>This is because the legislation requires the Fair Work commissioners to take into account complex considerations to determine if multi-employer bargaining is in the public interest. </p>
<p>A 2011 application by the Australian Nursing Federation to bargain with general practice clinics and medical centres <a href="https://www.fwc.gov.au/documents/decisionssigned/html/2013fwc511.htm">was rejected</a> on the grounds nurses were not low-paid. </p>
<p>A 2014 application by the United Voice union to bargain with five security service employers in Canberra <a href="https://asset.fwc.gov.au/documents/decisionssigned/html/2014fwc6441.htm">was rejected</a> because three employers already had enterprise agreements. </p>
<p>Just one attempt has passed the first stage of obtaining authorisation. In 2010, United Voice and the Queensland branch of the Australian Workers’ Union <a href="https://www.fwc.gov.au/documents/decisionssigned/html/2011fwafb2633.htm">sought authorisation</a> to bargain on behalf of 60,000 workers with residential aged-care providers funded by the federal government. This was about 300 employers. </p>
<p>Fair Work Australia agreed, but also excluded workplaces that had previously made an enterprise agreement. This knocked out about half the employers, undermining the collective strength needed to get the federal government to agree to fund any wage increases. </p>
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Read more:
<a href="https://theconversation.com/employers-say-labors-new-industrial-relations-bill-threatens-the-economy-denmark-tells-a-different-story-193311">Employers say Labor's new industrial relations bill threatens the economy. Denmark tells a different story</a>
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<p>Whatever the merits of arguments over details in the government’s proposed bill, there should be no argument that the system needs reform.</p>
<p>Enterprise bargaining hasn’t delivered. Collective bargaining has become the exception rather than the norm. Over the past decade the share of the workforce covered by an enterprise agreement has halved, to <a href="https://australiainstitute.org.au/report/the-wages-crisis-revisited/">12% of all employees</a>. </p>
<p>Greater access to multi-employer bargaining is needed for fair wages and conditions for many employees, especially those in low-paid feminised sectors where staff shortages and high turnover are widely recognised to be threatening care quality and jeopardising the sustainability of the industries.</p><img src="https://counter.theconversation.com/content/193829/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Fiona Macdonald has previously received funding from the Australian Research Council, the Victorian Government and various employer and trade union organisations. </span></em></p>The Albanese government cannot deliver on its promise to life wages for low-paid care work without expanding multi-employer agreements.Fiona Macdonald, Policy Director, Centre for Future Work at the Australia Institute and Adjunct Principal Research Fellow, RMIT University, RMIT UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1943482022-11-10T09:24:29Z2022-11-10T09:24:29ZGrattan on Friday: Government throws everything at securing workplace reforms before Christmas but Pocock keeps it guessing<p>Peter Reith would have appreciated the irony. In the week that the former industrial relations minister died, federal politics was yet again consumed with a highly charged debate over workplace changes. </p>
<p>Industrial relations is one of the perennial fault lines in Australian politics. As some battles get settled, fresh ones arise, often involving similar issues, in the enduring argument about growing and sharing the economic pie. </p>
<p>When he held the portfolio in the Howard government, Reith was both negotiator and warrior. In 1996 he and Cheryl Kernot, then leader of the Australian Democrats, who were the crossbench power wielders of the day, stepped their way to a compromise on a package of reforms. </p>
<p>Later, Reith was a tough player in the bitter employer-government assault on union power on the waterfront. </p>
<p>Reith had long gone from parliament by the time John Howard’s radical WorkChoices law became central in bringing down the Coalition government. </p>
<p>In the next turn of the industrial relations wheel, WorkChoices was scuttled by the Rudd government, with Julia Gillard the minister. </p>
<p>The Albanese government’s “Secure Jobs, Better Pay” omnibus bill, which passed the House of Representatives on Thursday, is broad in scope and the stakes are high for the key players in this latest IR test of strength. </p>
<p>The major contested change is the extent to which the legislation widens employees’ right to bargain with multiple employers.</p>
<p>Labor is delivering to the union movement with this bill, which also includes the scrapping of the Australian Building and Construction Commission, a body hated by the unions (and already defanged by regulation since the election). </p>
<p>The government used its jobs summit to prepare the way for a move on multi-employer bargaining. This was something of a ruse – there was never going to be a business-union consensus on this (although a section of small business took the bait at the summit). But the tactic left business wrong-footed.</p>
<p>Labor is desperate to pass the bill through parliament before Christmas. It argues the legislation’s crucial objective is getting wages moving so it’s needed ASAP. More pertinently, Labor is under intense pressure from the unions. It also wants to deny business time to run a campaign.</p>
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Read more:
<a href="https://theconversation.com/politics-with-michelle-grattan-karen-andrews-on-the-medibank-hack-visa-scams-and-winning-back-women-voters-194259">Politics with Michelle Grattan: Karen Andrews on the Medibank hack, visa scams, and winning back women voters</a>
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<p>The government needs one upper house vote over and above those of the Greens to secure the bill in the remaining sitting fortnight of the year. </p>
<p>Enter David Pocock, regarded as the most likely crossbench vote for the legislation (although, in theory, any Senate crossbencher could move into the frame). </p>
<p>Pocock is a progressive in his views and his support base, but he won his ACT senate seat from the Liberals, so at a constituency level he is under conflicting pressures. </p>
<p>He has urged that the bill be split, enabling more consideration of its contested parts. For obvious reasons, the government doesn’t want it broken up.</p>
<p>Crossbenchers in the lower house could not affect the outcome there but weighed into the debate. Their contributions were a reminder that on certain issues some “teal” MPs are more right-leaning than left-leaning. </p>
<p>Sophie Scamps told parliament the “omnibus” bill bundled together many “excellent policies” with “the more controversial ones”. “This has created a Sophie’s choice when it comes to voting.”</p>
<p>Another NSW teal, Allegra Spender, urged provision for an independent review after a year. Workplace Relations Minister Tony Burke preferred to leave that matter until the bill is in the Senate. Burke said he didn’t want to adopt such a review in the lower house and then “in Senate negotiations, we end up with a different independent review”.</p>
<p>The cynic might say the government is leaving room for Pocock to have wins of his own in the upper house negotiations. </p>
<p>Of the teals, Zoe Daniel and Monique Ryan voted in favour of the bill, while Spender, Scamps and Kate Chaney voted against. </p>
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Read more:
<a href="https://theconversation.com/government-makes-concessions-on-multi-employer-bargaining-bill-194026">Government makes concessions on multi-employer bargaining bill</a>
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<p>The government’s determination to speed the bill’s passage has strengthened business’s hand. Burke has given a number of concessions for employers. </p>
<p>A significant one is that votes of workers (to seek a multi-employer agreement, to strike, or to accept an agreement) would be taken at the individual business level, rather than on an overall basis. This would prevent workers in larger enterprises being able to overwhelm those in small ones.</p>
<p>Another change carves out the building and construction industry from the multi-employer stream (although business says the definition of the industry is too narrow). </p>
<p>Despite the concessions, business groups remain angsty, saying they don’t go far enough. In a joint statement they maintained the planned expansion of multi-employer bargaining is too wide. (There is general support for it for low-paid industries such as aged care and child care.) </p>
<p>The peak business groups, which have united in pressing for changes, claim the legislation will undermine enterprise bargaining. </p>
<p>The battle over the bill has given a deeper insight into the Albanese government. </p>
<p>It has shown that while Labor presented as a small target at the election, it had a larger agenda in its back pocket. </p>
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Read more:
<a href="https://theconversation.com/word-from-the-hill-rush-on-for-workplace-bill-albanese-gives-cop27-a-miss-big-spending-teals-194177">Word from The Hill: Rush on for workplace bill; Albanese gives COP27 a miss; big-spending Teals</a>
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<p>Also, while Anthony Albanese wants a good relationship with business, this issue underscores the strength of Labor’s ties to the unions. On the other hand, to get something they want when they want it, the unions are having to live with the ground the government is giving to business. The unions claim these concessions will make the multi-employer bargaining harder (outside the low-paid stream); they also play down some changes to the bill that are being made for their benefit.</p>
<p>While there has been a lot of talk about how politics has altered under the new government, the toing and froing over the workplace legislation shows much remains the same, as stakeholders and those with Senate power seek to influence the outcome. </p>
<p>Pocock met Albanese on Wednesday. A feature of the early months of his prime ministership is that the PM prefers to stand above the fray, leaving the carriage of issues to his ministers. But he is putting his shoulder to this particular wheel.</p>
<p>Pocock is very aware of his own clout. When the two met over a cup of tea, the message from Pocock was clear: he wouldn’t be declaring a position on the bill until the Senate committee examining the legislation makes its report, due November 17. </p>
<p>Given the extent to which the government is willing to compromise, the odds would seem on the bill being passed before Christmas. Even though there is a strong case against haste, it would be a big deal for Pocock to hold up for an extended period what the government is casting as urgently-needed legislation. </p>
<p>But we are unlikely to see Burke and Pocock posing together on a parliamentary garden bench, as Reith and Kernot did.</p><img src="https://counter.theconversation.com/content/194348/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Industrial relations is one of the perennial fault lines in Australian politics. As some battles get settled, fresh ones arise, often involving similar issues, in the enduring argument about growing and sharing the economic pie.Michelle Grattan, Professorial Fellow, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1941772022-11-08T07:43:43Z2022-11-08T07:43:43ZWord from The Hill: Rush on for workplace bill; Albanese gives COP27 a miss; big-spending Teals<p>As well as her interviews with politicians and experts, Politics with Michelle Grattan includes “Word from The Hill”, where she discusses the news with members of The Conversation politics team.</p>
<p>The clock is fast running down on the parliamentary year, but the government still has lots to do before Christmas. </p>
<p>In this podcast Michelle and Amanda Dunn, the Conversation’s politics editor, discuss Labor’s struggle to hasten through its industrial relations bill. It is proffering multiple amendments to accommodate business objections, but also to persuade key Senate crossbencher David Pocock, who would like the controversial bill split, something the government won’t do. </p>
<p>Michelle & Amanda also canvass the COP27 conference under way in Egypt, which Anthony Albanese is not attending, and the release this week of election spending returns, which showed big cash splashes by successful Teals.</p><img src="https://counter.theconversation.com/content/194177/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>In this podcast Michelle and Amanda discuss Lathe government’s struggle to hasten through its industrial relations bill, he COP27 conference under way in Egypt, and the big cash splashes by successful Teals.Michelle Grattan, Professorial Fellow, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1933112022-10-31T19:01:49Z2022-10-31T19:01:49ZEmployers say Labor’s new industrial relations bill threatens the economy. Denmark tells a different story<figure><img src="https://images.theconversation.com/files/492451/original/file-20221031-17-p80rqf.png?ixlib=rb-1.1.0&rect=120%2C439%2C3224%2C1642&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Labor’s proposed amendment to the Fair Work Act (subtitled its <a href="https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6941">Secure Jobs, Better Pay bill</a>) has drawn fire from Australia’s three leading employer groups:</p>
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<li><p>the Australian Chamber of Commerce and Industry, which says it will create <a href="https://www.australianchamber.com.au/news/seismic-ir-shift-means-increasing-strikes-higher-unemployment/">more strikes and unemployment</a></p></li>
<li><p>the Australian Industry Group, which says it threatens decades of national prosperity and will <a href="https://www.aigroup.com.au/news/media-centre/2022/workplace-relations-legislation/">turn workplaces into conflict zones</a> </p></li>
<li><p>and the Business Council of Australia, which says it risks tipping the economy over the edge <a href="https://www.bca.com.au/australia_can_t_afford_workplace_relations_own_goal">while workers wait longer for pay increases</a>.</p></li>
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<p>The Senate has begun an inquiry, but it is already easy to see the worst of these fears are misplaced.</p>
<p>Along with banning pay secrecy clauses, putting gender equity at the heart of the Fair Work Commission’s pay-setting process, and giving it new powers to resolve long-running disputes, the bill expands access to <a href="https://www.tonyburke.com.au/media-releases/2022/-secure-jobs-better-pay-bill">multi-employer</a> bargaining, something that withered away at the start of the 1990s.</p>
<p>While multi-employer bargaining is allowed under current laws, no such agreements have been made since <a href="https://library.oapen.org/bitstream/handle/20.500.12657/27384/wages-crisis-ebook.pdf">2009</a>, and few since the introduction of enterprise bargaining in <a href="https://theconversation.com/cabinet-papers-1992-93-the-rise-and-fall-of-enterprise-bargaining-agreements-70139">1993</a>.</p>
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Read more:
<a href="https://theconversation.com/why-unions-and-small-business-want-industry-bargaining-from-the-jobs-summit-and-big-business-doesnt-189394">Why unions and small business want industry bargaining from the jobs summit – and big business doesn't</a>
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<p>Before enterprise bargaining, pay was set by hundreds of awards – most covering more than one employer in a sector or occupation – negotiated between employers and unions before being arbitrated by the Fair Work Commission.</p>
<p>Enterprise bargaining largely replaced that process with agreements individually negotiated in each workplace, and merely registered with the Commission, which checks whether they have passed a “Better Off Overall Test” and meet minimum standards.</p>
<p>A smaller number of awards continued, renamed “<a href="https://www.fwc.gov.au/agreements-awards/awards">modern awards</a>”, and used as a backup for enterprises in which agreements couldn’t be reached.</p>
<h2>Enterprise bargains are becoming rarer</h2>
<p>It was thought enterprise bargaining would boost productivity, because workers would be able to suggest changes to the way their enterprise worked that would make things more efficient in return for more pay. However, the extent to which this happened is <a href="https://rest.neptune-prod.its.unimelb.edu.au/server/api/core/bitstreams/9a8a4bfc-55d0-5219-91f4-9c1c2fa753aa/content">unclear</a>.</p>
<p>Lately, enterprise bargaining has been declining, with the number of operational federally-registered enterprise agreeements <a href="https://australiainstitute.org.au/wp-content/uploads/2022/05/Wages-Crisis-Revisited-WEB.pdf">falling by more than half</a> from 23,500 to 10,000 between the ends of 2013 and 2021.</p>
<p>In part this has been because pay rises offered under enterprise bargains have been too low to represent value for workers in the enterprise or their union. </p>
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Read more:
<a href="https://theconversation.com/theres-one-big-reason-wages-are-stagnating-the-enterprise-bargaining-system-is-broken-and-in-terminal-decline-183818">There's one big reason wages are stagnating: the enterprise bargaining system is broken, and in terminal decline</a>
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<p>Under the current enterprise bargaining rules, introduced by the Rudd government in 2009, employers are <a href="https://theconversation.com/theres-one-big-reason-wages-are-stagnating-the-enterprise-bargaining-system-is-broken-and-in-terminal-decline-183818">not legally obliged to offer higher pay</a> in return for demands such as longer working days.</p>
<p>The <a href="https://www.actu.org.au/actu-media/media-releases/2022/finally-action-on-wage-growth">Australian Council of Trade Unions</a> believes bargaining with multiple employers will enable employers to offer more, knowing others can. It wants the government to be part of the process where it funds the pay rate set, as it effectively does for childcare and aged care.</p>
<p>Employer representatives say it would be a return to the <a href="https://www.smh.com.au/national/bargaining-the-boot-and-a-1970s-economy-decoding-industrial-relations-speak-20220830-p5bduc.html">1970s</a>, or the <a href="https://www.theguardian.com/australia-news/2022/aug/25/what-is-multi-employer-bargaining-could-it-help-lift-wages-growth-in-australia">1960s</a>, when industrial action was common and prices and wages chased each other up.</p>
<p><a href="https://journals.sagepub.com/doi/10.1177/09596801221132424">Our research</a> on Denmark suggests these fears are misplaced.</p>
<h2>Denmark shows what’s possible</h2>
<p>Denmark has enterprise agreements, similar to Australia’s, but they are linked to multi-employer “sectoral” agreements bargained between unions and employer associations representing workers and employers across a particular sector.</p>
<p>These sectoral agreements provide “frameworks” that can be varied at the level of each enterprise. Like Australia’s awards, the sectoral agreements are the default in enterprises that are unable to strike enterprise bargains.</p>
<p>The difference is that Denmark’s sectoral agreements provide a stronger set of minimum conditions and protections than Australia’s awards, which are more limited by law in what they can cover. </p>
<p>Danish workers have the right to strike and employers have the right to “lockout” their workers by preventing them from working. Despite these powers, industrial action is <a href="https://www.researchgate.net/publication/351914562_Employment_Relations_in_Denmark">relatively rare</a> in Denmark. </p>
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Read more:
<a href="https://theconversation.com/wages-and-women-top-albaneses-ir-agenda-the-big-question-is-how-labor-keeps-its-promises-183527">Wages and women top Albanese's IR agenda: the big question is how Labor keeps its promises</a>
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<p>In recent years <a href="https://uk.sagepub.com/en-gb/eur/international-and-comparative-employment-relations/book269095">fewer days</a> have been lost to industrial disputes in Denmark than in Australia. Taking into account the relative sizes of their workforces, Australia lost about 10 times as many days to industrial action as Denmark in 2021.</p>
<p>This is despite unions being much stronger in Denmark – <a href="https://faos.ku.dk/publikationer/forskningsnotater/rapporter-2019/Rapport_184_-_L_nmodtageres_faglige_organisering_2000-2018.pdf">65%</a> of Danish workers are union members compared to only <a href="https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/trade-union-membership/latest-release">14%</a> of Australian workers – and industrial disputes in Australia falling to <a href="https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/industrial-disputes-australia/latest-release#:%7E:text=During%20the%20year%20ended%20June,of%20234%2C600%20working%20days%20lost.">historically low levels</a>.</p>
<p>And Denmark does not have out-of-control wages growth. In the past year average Denmark wages climbed <a href="https://www.dst.dk/en/Statistik/emner/arbejde-og-indkomst/indkomst-og-loen/loenindeks">2.5%</a> compared to a similarly-calculated <a href="https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/average-weekly-earnings-australia/latest-release">3%</a> in Australia. In August, Denmark’s unemployment rate was <a href="https://tradingeconomics.com/denmark/unemployment-rate">2.7%</a>. Australia’s was <a href="https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/aug-2022">3.5%</a></p>
<p>Multi-employer bargaining won’t solve all of Australia’s workplace relations problems, but it’s unlikely to make many of them worse.</p><img src="https://counter.theconversation.com/content/193311/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Chris F. Wright has previously received funding from the Australian, NSW, UK and Dutch governments, the International Labour Organization, and various employer and trade union organisations. </span></em></p><p class="fine-print"><em><span>Russell Lansbury and Søren Kaj Andersen do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Denmark has the type of industrial relations system the government wants to move to. It has fewer industrial disputes than Australia, lower unemployment, and similar wages growth.Chris F. Wright, Associate professor, University of SydneyRussell Lansbury, Emeritus Professor in Work and Organisational Studies, University of SydneySøren Kaj Andersen, Associate Professor, University of CopenhagenLicensed as Creative Commons – attribution, no derivatives.