Union compliance and incomes policy: The Australian Social Contract, 1983-87

Abstract

Australia has a lang experience of centralised wage-fixing through the federal and state systems of conciliation and arbitration but unti/1975 this machinery was not embedded in a more general incomes policy. Although this was undermined progressively and finally abandoned in 1981 a further incomes policy was introduced two years later following the election of a federal Labour government. Overseas experiences indicates that the structural features of the union movement are important determinants of the success of an incomes policy. Australian experience since 1983 however, indicates that, despite large numbers of competing unions and a union peak council lacking formal control over affiliates, an incomes policy may be viable. This reasoning was supported by empirical evidence pertaining to the role of the Australian Council of Trade Unions in securing compliance from affiliated unions.