Two Models of Award Restructuring in Australia

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Abstract
Award restructuring represents a fundamental transformation of Australian industrial relations. This article seeks to provide a clear understanding of what is involved in the process and its impact. Awards under Australia's system of state compulsory arbitration are legally enforceable documents covering approximately 85 per cent of the workforce. Two ideal types are identified to help explain the type of strategic choices likely to be faced by the key players in deciding on the forms award restructuring should take. One approach bong taken by employers is to narrowly focus on cost minimization measures, resulting in a defensive response from the unions about the ‘trade offs’ or ‘offsets’ they are being asked to make. The other approach involves unions and employers seeking agreement on a range of productivity enhancement measures which are not seen by the participants as having a zero sum outcome. Each of these approaches is discussed in relation to the new industrial relations of work organization, skill and wage determination. The impact of award restructuring will be highly variable. The differences can be partly explained by competitive pressures from product markets, past efforts at workplace reform and the credibility of the management in being able to sustain a process of change.

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