Wages policy and wage determination in 1997

This article begins with an overview of the economic context that prevailed in 1997, highlighting the importance of the ultra-low inflation environment that emerged during the year. Key developments at national and state level are then examined. The most significant of these concerned decisions about the ole of awards in the wages system and the steady emergence of non-union agreements, both collective and individual. Tensions between the different types of wage determination were most apparent in the coal mining industry, where a number of intense and protracted disputes dragged on throughout the year. In addition, both the political and industrial wings of the labour movement unveiled new approaches to wages policy, shifting emphasis away from the highly decentralised approach they had previously promoted. Developments in key industries are then analysed. These reveal that wage increases in enterprise agreements are not the only (or even the major) source of wage pressure in the economy. Indeed, recently released data on the changing structure of workplaces and the labour market have highlighted the need to place the formal institutions of wage determination in context if the nature of wage movements is to be properly understood. Analysis of these developments is followed by a brief consideration of how pay equity is being handled undercurrent arrangements. The paper concludes by noting the importance of placing official ’reforms’ to the wages system in the context of policies and practices used by industrial relations parties.

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