Key Role of Government

Topics: Government, Economics, Supply and demand Pages: 2 (610 words) Published: November 18, 2012
Key role of government
The government has 6 key roles in employment relations, the first one being an economic manager. As an economic manager, the government places great emphasis on macroeconomic policies in terms of money supply, aggregate demand and fiscal regulations and thereby, affecting the operation of labour markets and the utilisation of manpower. The provision of a return to work incentive is an example. In this role, the state has taken steps to encourage and promote labour mobility. An example is providing training to address skill shortages in the economy. The second role of the government is as a legislator. This is the most direct influence on employment relations (ER) and this is done through enacting legislations to create auxiliary, restrictive and regulatory rules to control the behaviour of parties within the employment relationship. There are 2 types of rules involved, the first one being procedural rules, outlining the process or the required format of proceedings, who and how are they involved. The second one is substantive rules, outlining issues such as what matters and could be included in the bargaining or negotiations. Another equally important role of the government is as a protector of minimum standards in employment, in which the government establishes and monitors minimum standards through its agencies. Thirdly, the government acts as a model employer. As an employer, the state can set the standards of responsible employment practice. They can do so directly by influencing working conditions in order to implement ER policies or indirectly, by influencing the private sector conditions. Approximately 33% of the Australian workforce is employed by the government Fourthly, the government acts as an industrial peacekeeper. This is done through direct terms such as direct intervention or indirectly through tribunal systems and associated agencies or alternatively through procedural and substantive rules to influence the behaviour of...
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