Why Is Australia's Labour Market Unfair

Labour market is where individuals seeking employment interact with employers who want to obtain the most appropriate labour skills for their production process. Wages are then received in return to the factor of production of labour due to their productivity in the production of goods and services. Before 1986-87 Australia was a centralised labour market, which was a system in which a government or industrial tribunal determines wages and working conditions for all employees, regardless of which firms they work for. However, from 1986-87 it changed to a decentralised labour market which s a system in which wages and working conditions are determined through negotiation, between firms and employees. From the early 1970s Australia’s labour market

It provides a set of minimum wages and working conditions for employees specific to their industry, job classification, occupation or the type of work they conduct. Hence, it would simplify thousands of wards that currently exist in the federal award system. Modern Awards can also contain a flexibility clause which means that employers and employees are able to negotiate changes in workplace arrangements to meet their individual needs. It helps promote the goal of equity and efficiency as it established a set amount that is required for the employees for their work within the labour force and encourages them to further to continue their work. The Fair Work Act of 2009 also deals with workplace and industrial rights, including protection against discrimination and unfair dismissal in the workplace. Unfair dismissal is when an employee is dismissed from their job in a harsh, unjust or unreasonable manner. As a result, the goal of equity is achieved as no one is discriminated because of their background and can be able to work/apply for jobs that they want to work for. Hence, if employees have an unfair dismissal due to unreasonable or harsh methods, the act would assist in achieving equity by resolving the

It is Australia’s national workplace relations tribunal. Their responsibilities and functions include: the safety net of minimum wages and employment conditions, enterprise bargaining, rules over industrial actions, dispute resolution procedure and termination of employment. Whereas, Fair Work Ombudsman helps employees, employers, contractions and the community to understand and comply with the new system and their responsibilities include: advice to employees and employers on their rights, ensures compliance with the Fair Work Act 2009, prosecution of breaches for compliance with the FWA, use of Fair Work Inspectors to monitor and investigate complaints in workplaces and publication of information and best practice guides on workplace relations and workplace practices. By these two organisations provided services to the workforce it ensures equity as everyone is treated equally, with the same respect and no judgement made. Hence, it ensure efficiency as it encourages employees to work hard to deserve what they get in