Modern day work environments present a dichotomy of cultures, beliefs, needs and

expectations of its workforces. The nature of work today is quite different from the

environments presented to generations before. The employment relations landscape is

under a constant change. The purpose of this essay is to critically discuss the major

changes that have occurred externally to impact on employment relations (ER). The

discussion will focus on two contextual areas, being the changing labour markets and the

national political contexts that effect employment relations.

The essay will use information from the current text, as well as relevant journal articles to

support the discussion. The contextual factors being discussed are at the same level of

analysis, being the national economy and political arena (Bray, Waring and Cooper, 2009).

Firstly, the area of changing labour markets will be discussed. The main factors of

unemployment levels, participation rates and the growth of non standardised employment

will be examined. The changes in these facets of the labour market have impacted in the

development of ER through providing a more holistic view of the employer-employee

relationship and providing benefits for all workers.

Secondly, the essay will focus on the political landscape in Australia and examine the

changes impacted through the introduction of the Fair Work Act (2009). This essay will also

explore the move away from and return to a collectivist approach, with a focus on the

change from Work Choices to the Fair Work Act.

The conclusion of the essay will view the impacts of the changes in the areas of political and

labour markets as being positive for the area of ER by regenerating the importance of ER in

the Australian context and helping it evolve to a more modern and relevant position.
This change in labour markets is an area of major impact within the employment relations

context. Firstly, the lower unemployment rates currently being experienced have impacted

on perception of value of unions. It is generally accepted that periods of low unemployment

move the balance of power towards employees rather than employers as employers attempt

to implement strategies to promote loyalty and commitment to their jobs. In these times, it is

possible to underestimate the role of employment relations as aggregate employment is

high. It is important to note that even in the face of declining membership, the strength of a

well orchestrated and focussed campaign, such as the movement against Work choices

through campaigns like ‘Your Rights at Work” the Australian Union movement was a

significant factor in electing a Government (Wilson & Spiers-Butcher, 2010).

With the decline in manufacturing jobs and the rise in service oriented positions identified,

the needs of the markets are now different to what they were even ten years beforehand.

The rise of service industry roles means that the evolution of non standardised work has

emerged. Changes to even fundamental conditions at work such as hours of work are

necessary in these industries as they strive to provide services 24/7 to an exceedingly

demanding market place. Part time and casualised employment has increased as employers

look to satisfy these market needs. This change is not only employer driven. Changing

lifestyles is seeing more employees seek this type of working arrangement. The increasing

presence of women in the workplace means that more family friendly solutions to work are

sought. Recognition of the disadvantaged position of women in the work-force has resulted

in the enactment of laws to promote equal employment opportunity. (Strachan & Burgess,

2000). The difficulty in representing non standardised work in the ER environment has

presented challenges in compiling relevant award structures and work agreements for these

workers. The importance for these groups is most high as they are the groups that are

mostly without power in such negotiations, a view supported by Wilson and Spiers–Butcher

(2010).
A wide range of international research has found, and Australian work has long suggested,

that universal state-sanctioned minimum conditions provide significant protection and

improvements for low-wage workers, including women. In the Australian case, women

working in a range of industries were identified as being at risk under policies that reduced

the scope of those employment protections while opening the way for managers to alter

conditions unilaterally and dismiss employees much more readily (Baird, Cooper & Ellem,

2009). This type of scenario helps shape legislation, for example protecting the rights of a

worker who falls pregnant. This change in participation rates has resulted in a positive

impact to the ER landscape through improved worker rights. Opposing views will point to the

increases in costs the change has driven, this view is perhaps short sighted. The economic

benefit as indicated by the Access Economics report into women in the workplace (2006)

supports the view that overall the involvement is a positive in terms of economic benefit.

The neo liberal emergence of the 90’s which seems to permeate through both sides of the

political landscape currently, is placing more opportunity at the employers feet to drive these

non standardised modes of employment and allowing the market driven policies to emerge.

The implementation of the Work Choices legislation by the former Howard Government,

replacing the Workplace Relations Act further ingrained the neoliberalism market place

approaches to policy making, aiming to restrict collective bargaining and further promote

individual work contracts, potentially returning Australia to a master – servant working

relationship. (Isaac, 2006). The reform was opposed by the union movement, citing the

potential for the lowest paid and skilled component of the workforce, who were least able to

negotiate conditions for themselves were perhaps at even greater risk of being exploited.

This included the vast amount of women in the workplace, particularly those who were

engaged in these more flexible, casualised arrangements.

The impact of the changing levels of participation of the sexes in the workforce has

contributed to a more dynamic and holistic view of employment relations having positive

impacts for all workers in areas such as equal opportunity legislation.

The Rudd Government presented a platform that demonstrated the active nature of

employment relations in Australia when it swept to power on the back of the Work Choices

reform of the industrial relations landscape introduced by the Howard Government. The term

reform suggests improvement and this is at best debatable.

The Employment Relations landscape as a result has seen major change in this respect,

with a change of government, the dismantling, albeit not completely, of Work Choices and

the establishment of the Fair Work Act (2009).

The impact of this change for the Rudd Government is one which is central to the field of

industrial relations in Australia and other liberal democratic societies, namely: to achieve

economic efficiency while ensuring fairness in the distribution of wealth. In Australia,

successive governments since federation sought to achieve this through the encouragement

of collective bargaining between unions and employers and independent industrial tribunals

to oversee this process. In recent years, this system has undergone various reforms –

currently the establishment of Fair Work Australia and renewed support for the principle of

collective bargaining. (Lansbury, 2009).

Upon winning office the government was immediately confronted by the financial woes of the

global financial crisis. The response to the crisis appeared to signal an end to the

neoliberalism trend that had been occurring through the Howard years by implementing

some very state based controls, such as the stimulus package to promote economic activity.

A response that had positive impact for ER as job losses were minimised. However this is

probably an extreme view as components of his Fair Work Act certainly contain some

neoliberal sentiment as the regulation of the act seeks to limit but in no way eliminate the

influence of market forces.

The winning of government on an issue of employment relations is testament to its

importance in Australia, and it demonstrates that the landscape for employment relations

remains vibrant and relevant in our society. The power of the union movement was evident
during the campaign and perhaps fundamental in the Rudd government winning office

interestingly, the ability to fully dismantle Work Choices was not undertaken. The new

government chose to retain some of Howard’s anti-union measures, including a restricted

right of entry, severe limitations on the right to strike, heavy fines for unlawful industrial

action and stringent additional controls over the building industry administered by the

Australian Building and Construction Commission, set up by the former government

(Wilkinson, Bailey & Mourell, 2009), to the dismay of some antagonists. The Fair Work Act

though, with its provisions for national employment standards seeks to provide some

standardisation for all workers. Perhaps the biggest change within this context is the right

for an employee to request flexible working arrangements. Refusal can be given, on

reasonable business grounds that have not been identified. The other main change in this

area appears to be the provisions around Parental leave. Most notable is the allocation of

parental leave for long term casual employees. This level of benefit is not common in this

employee group, so additional benefits have been delivered with the implementation of the

act.

In conclusion, the impacts of changes in two areas, changing labour markets and the

national political landscape provide a challenge for ER practitioners. The changes have had

a positive influence on the evolution and consideration of rules and regulations, perhaps

even becoming more holistic and relevant in a world where lifestyle is paramount. The

emergence of the female worker has positively influenced ER legislation and provided

benefits for all workers in areas such as Equal opportunity.

The impacts of change in the ER landscape are providing a strong foundation for the

employer-employee relationship going forward in becoming a more united partnership than

has been historically the case.

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Ageing%20Challenge.pdf

Baird, M., Cooper, R and Ellen, B., (2009).Low-paid women: The impact of regulatory

change in Australia. Industrial Relations Journal,40(5), p.395-407.

Bray, M., Waring, P. and Cooper. R. (2009). Employment Realtions: Theory and Practice,

North Ryde, NSW: McGraw-Hill.

Isaac, J. (2007).Reforming Australian industrial relations: The 21st Foedander lecture,

Journal of Industrial Relations, 49, p.410-435

Strachan, G.and Burgess, J.(2000). The incompatibility of decentralized bargaining and

equal employment opportunity in Australia, British Journal of Industrial Relations, 38(3)

p.361-381.

The University of Sydney (2010, March 18). Talking Employment Relations with Professor

Russell Lansbury AM. Retrieved June 2, from http://sydney.edu.au/business/news/

talking_employment_relations_with_professor_russell_l ansbury_am

Wilkinson, A., Bailey, J and Mourell M. (2009). Editors’ introduction: Australian industrial

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Wilson, S. and Spies-Butcher, B. (2010) When labour makes a difference: Union

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