The successful implementation of labour market policies can promote the competitiveness and efficiency

of the Australian economy, effectively increasing Australias potential for growth, augmenting economic
performance. For such reform to be successful, however, its attempts to increase the productivity of the
Australian labour force must not jeopardise the quality of life and standard of living of Australians by
dramatic reductions to working conditions.

One of the most quintessential function of the labour is wage determination as it indirectly promotes
participation and productivity within the workforce.
Historically, Australian labour market has been regulated through a mix of federal and state laws, with
significant overlaps between the different systems.
Due to inefficiencies surrounding conflicts between state and federal industrial relation systems, Therfore,
the Rudd government introduced Fair Work Act, which established a state unified system national IR
system.
A study by Access Economics estimated that a single national IR system reduces compliance cost by $4.8
billion over 10 years.
One of the major reforms achieved through the Fair Work Act is the modernisation of the award system.
Around 4,300 state and federal awards were replaced by a system of just 122 modern awards that apply at
a national level. An award is a legal document that provides a safety net of minimum wages and
conditions for working in a particular industry.In addition, a national minimum wage provides a safety net
for any employee not covered by an award.
In June 2012, Fair Work Australia increased the national minimum wage and all modern awards minimum
wages by 2.9% (current $16.89).
Furthermore, the labour market also indirectly promotes participation and productivity within the
workforce through creative a safe, equitable and fair workplace. Work Health and Safety (WHS) Act (NSW)
2011 has replaced OH&S. Employer must safe working procedures are in place with safe machinery and
equipment. Provide information about hazards and proper training and supervision to employees. Hence
by making it legally binding upon business, it decreases the change of accidents hence increasing
productivity. Moreover, Australian employees have ten guaranteed employment conditions, which are set
out through a document called National Employment Standards. These include various provisions
including paid annual leave, working hours, termination conditions and several more. Moreover, labour
market policy aims to promote an equitable workplace as various legislations such Racial Discrimination
Act 1975 and Anti -Discrimination Act 1977 prohibits discrimination on the grounds of gender, sexual
preference, religion or disability. Moreover, the Equal Employment Opportunity (EEO) is a new anti discrimination that strengthens legislative support to ensure that all employees are treated with fairness
and respect in the workplace and not subjected to any form of discrimination or harassment. None the
less, women only hold 8% of key, board and executive positions at Qantas.

Additionally, disputes and disturbances such as strikes, work bans and lockouts can result in
reduced productivity, lower output, lower profits and damage to a business' customer relationships. Fair
Work Australia only intervenes to resolve disputes in specific circumstances:

Compulsory dispute settlement terms - Fair Work Act requires all awards and enterprise agreements
to include a term explaining the process that the parties will adopt if they have a dispute. If the dispute
cant be resolved they must refer it to a third party that offers dispute resolution services, e.g. Fair
Work Australia (FWA).
Bargaining in good faith this refers to the conduct of negotiations. It obliges employers and
employees to adhere to certain provisions when at the bargaining table. This includes: participating in
all meetings, disclosing relevant information, engaging in constructive negotiation and genuinely
considering all proposals. If not, FWA can make legally binding orders and in rare circumstances it can
arbitrate.
Resolving industrial action Industrial action is permitted during the process of enterprise
bargaining. FWA will however is able to step in to suspend or terminate such industrial action if special
circumstances exist, including where there is threat of significant harm to the economy or population
as well the bargaining power of the two parties.

Effectiveness of the industrial action can be measured by level of industrial action in working days over the
year. Due to better relations and law, industrial action has decreased since the early 1980 as the employee
was only permitted to go on strike for a limited account of time (under their 2-3 enterprise bargaining
contract).

Constraints