TRADE UNIONS AND ECONOMIC REFORM IN AUSTRALIA, 1983–2013

Abstract

Many of the key reforms of the past three decades that helped to strengthen the Australian economy were implemented during the operation of the Accord that existed between Australian Labor Party governments and the union movement. In order to address structural economic problems, unions agreed to moderate wage outcomes and to facilitate the transition to workplace bargaining in return for social welfare gains for workers, which successive governments have maintained. These reforms helped to improve labor market efficiency and allowed firms to integrate successfully into international markets, without substantially compromising the interests of workers and their families, which thereby allowed economic dislocation and social unrest to be contained. In contrast to the assertions of certain Australian employer groups, research has consistently shown that union involvement in workplace bargaining has a benign impact on business productivity. However, declining membership presents a significant challenge to the capacity of Australian unions to influence economic outcomes at the national and workplace levels in the future.