Impact of Trade Unions & Labour Markets

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Economics Practise Essay Examine the role of trade unions, employer associations and the federal government in the Australian labour market, and discuss their impact on labour market outcomes. A market is a situation where buyers and sellers are in contact with each other for the purpose of exchange. There are two different types of markets, a product market and a factor market (land, labour, capital, enterprise). Labour is the human element in the production process, such as physical and intellectual effort in return for wage and non-wage outcomes within the labour market. A labour market is where the demand (employer) and supply (employee) of labour interact to determine wage rates. Such labour market outcomes (wage and non-wage) are heavily influenced by labour market institutions such as the federal government, trade unions and employer associations. The Australian Federal government have influenced labour market outcomes through legislation such as the Workplace Relations Act 1996. This legislation has been amended four times to date: Workplace Relations Amendment Act 2006, Workplace Relations Amendment Act (A Stronger Safety Net) 2007, Workplace Relations Amendment Act (Transition to Forward with Fairness) 2008 and most recently passed by government on the 20th March 2009, Workplace Relations Amendment Act (Fair Work Act) 2009. As of 1st July 2009, the workplace relations system has changes to a new system that balances the needs of employees, the unions and employers. Key elements of the Fair Work Act 2009 include the establishment of Fair Work Australia, to oversee the new industrial relations system. Fair Work Australia has the power to vary awards, make minimum wage orders, approve agreements (Greenfield agreements), determine unfair dismissal claims and make orders on such matters as good faith bargaining and industrial action, to help

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