hsc economics topic 4 notes
Labour Market Policies
Labour market policies; are microeconomic policies that influence operations and outcomes in the labour market including industrial relations policies that regulate the process of wage determination as well as training, education and job placement programs to assist the unemployed.
The role of national and state systems
Australia’s industrial Relations system is governed by the “Fair work Act 2009” a unified national system for the private sector implemented by Rudd Government of the labour party. Prior to this, was the “Work Choices Act 2006”, by Howard Government. This act, modernized the award system from around 4300 awards to 122 modern awards, and simplified the retail sector from 46 awards and 2082 pages to 2 awards and 76 pages.
The national system for determining wages The fair work system establishes 3 main streams in the labour market that determine the pay and conditions of employees :
Industrial awards – ABS 08’ 17 % of all employees are covered by industrial awards
Collective agreements – ABS 08’ 40 % employees are covered by a collective agreement
Individual employment contracts – ABS 08’ 39 % of employees covered by common law contract or AWA
Minimum employment standards:
The National Employment standards, sets out:
Maximum weekly hours of work : 38 hrs
Right to request flexible hours ie to care for family
Leave ie, annual, sick
Notice of termination and redundancy pay
Minimum wages
Minimum wages provide a safety net for any employee not covered by an award
In June 2010, Fair work act set minimum wages to $ 15 per hour
Awards
Awards establish the minimum wages and working conditions for employees
Award system changed from 4300 awards to 122 awards- now referred to as “ modern awards”
Modern awards must now include a flexibility clause; enabling employees to vary the effect of an award to meet their individual needs without negotiating a separate agreement.
Enterprise Agreements –
Labour market policies; are microeconomic policies that influence operations and outcomes in the labour market including industrial relations policies that regulate the process of wage determination as well as training, education and job placement programs to assist the unemployed.
The role of national and state systems
Australia’s industrial Relations system is governed by the “Fair work Act 2009” a unified national system for the private sector implemented by Rudd Government of the labour party. Prior to this, was the “Work Choices Act 2006”, by Howard Government. This act, modernized the award system from around 4300 awards to 122 modern awards, and simplified the retail sector from 46 awards and 2082 pages to 2 awards and 76 pages.
The national system for determining wages The fair work system establishes 3 main streams in the labour market that determine the pay and conditions of employees :
Industrial awards – ABS 08’ 17 % of all employees are covered by industrial awards
Collective agreements – ABS 08’ 40 % employees are covered by a collective agreement
Individual employment contracts – ABS 08’ 39 % of employees covered by common law contract or AWA
Minimum employment standards:
The National Employment standards, sets out:
Maximum weekly hours of work : 38 hrs
Right to request flexible hours ie to care for family
Leave ie, annual, sick
Notice of termination and redundancy pay
Minimum wages
Minimum wages provide a safety net for any employee not covered by an award
In June 2010, Fair work act set minimum wages to $ 15 per hour
Awards
Awards establish the minimum wages and working conditions for employees
Award system changed from 4300 awards to 122 awards- now referred to as “ modern awards”
Modern awards must now include a flexibility clause; enabling employees to vary the effect of an award to meet their individual needs without negotiating a separate agreement.
Enterprise Agreements –