A beneficial constraint: trade unions and the Australian economy

A beneficial constraint: trade unions and the Australian economy

Principal speaker

Professor Russell Lansbury

Abstract: This presentation is drawn from a co-authored paper analysing the impact of Australian unions on economic outcomes in relation to public policy and at the workplace level. Its main focus is on the influence of union on various dimensions of government economic policy over the past three decades, particularly macroeconomic and labour market policies, as well other areas where unions have been prominent stakeholders, such as industry policy.

Unions have helped to achieve beneficial outcomes for the Australian economy during this time. 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 labour 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.

Speaker: Russell Lansbury is Emeritus Professor of Work and Organisational Studies at the University of Sydney. He holds degrees from the University of Melbourne and London School of Economics.

Russell is a former President of the International Labour and Employment Relations Association. His recent research has focused on the impact of management strategies in multinational enterprises on employment relations and labour practices, particularly in autos, banking and mining.

 


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