Some Observations on Wage-Setting Practices in The Australian Labour Market System

Abstract

The Theme of this paper is that an inherent conflict exists both for those who want to radically refor M the Australian institutional wage-setting system and for those who want to maintain the status quo. There is evidence from theory, supported in the main by empirical evidence, consistent with the view that wage regulation has inhibited the attainment of on-the-job training, with concomitant implications for the development of technological change and economic growth. On the other hand, a centralised wage settlement system facilitates the adoption of a concensual incomes policy, such as the Accord, which has apparently helped deliver favourable wage and industrial disputation outcomes. The challenge is to find processes that promote movements towards establishment-based wage bargaining without threatening the benefits of economy-wide income settlement.