In a policy environment dominated by enterprise bargaining, adjustment of the wages safety net is influenced by a number of factots including the effects of raising award rates on productivity, equity, the incidence of bargaining, wage outcomes from enter prise bargaining and employment. Our understanding of many of these issues has been affected by changes during the 1990s in the relationship between the award safety net and actual wages, by new research and by growing experience of the interaction between award wages and monetary policy. The efficacy of flat rate safety net adjustments in promoting equity is naw also open to challenge. By late in the 1990s the Australian Industrial Relations Commission was in a better position to give effect to its social obligations than it had been at any earlier time in the decade, and to ensure that award rates kept pace in the longer run with changes in community living standards.
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