Both trade unions and wage determination are subject to much debate concerning rights and responsibilities of employers and the employees. Outlined below are some of the methods used to determine wages in Australia, and the foremost advantages and disadvantages of enterprise bargaining. Recent trends in wage determination and some of the impacts are also discussed.
In New South Wales, employers and employees can be covered by either the federal or state industrial relations systems, or they may be award free. However, recently Australia has been favouring a more decentralized system of wage bargaining. This is reflected by a rise in influence of employers, a change in political will, and a view that market determined wages will help reduce unemployment.
Although wage determination is currently a topic of much debate, it can be divided into three separate groups; collective bargaining, arbitration, and individual contract.
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