Where does enterprise bargaining fit in Australia’s productivity drive? Case study evidence from the manufacturing industry

This paper explores the relationship between enterprise bargaining and productivity. The key focus is on the effectiveness of enterprise bargaining as a driving force behind productivity improvement. In on attempt to bear some empirical evidence on the enterprise bargaining - productivity debate in Australia, this paper examines the role and impact that enterprise bargaining ployed on the performance of a workplace in the steel manufacturing industry. A longitudinal case study analysis is used to evaluate the gains and losses realised by a workplace that opted to use enterprise bargaining as a solution to its workplace issues. Specifically, the paper examines the process and outcomes of each round of bargaining between 1991 and 1999 to determine whether the objectives of each successive enterprise agreement were achieved and in turn, whether this hos led to a more productive workplace for employers and a better work environment for employees. The paper finds that enterprise bargaining had little, if any, direct impact on workplace productivity and rather highlights the important role of management. The study confirms that the relationship between enterprise bargaining and productivity is for more complex than advocates had originally assumed.

© Tertiary Press, 2003.