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Abstract

The economic implications of enterprise bargaining depend critically on the precise version of enterprise bargaining being contemplated. One version sees enterprise bargaining as an add-on process, with the existing bank of awards retained, and trade unions playing a central and protected role. Another version sees enterprise bargaining as an holistic process, wherein all terms and conditions of employment can be negotiated subject to some minimum conditions. Trade unions may play some role, but not to the exclusion of other bargaining agents. Add-on enterprise bargaining may have only a small impact on productivity; there is a danger that wage (and price) inflation could increase; and the impact on employment is uncertain. Holistic enterprise bargaining is likely to have a more substantial impact on productivity; is unlikely to lead to inflation; and employment growth should be boosted. However, power-reducing policies and the abolition of awards are necessary correlates of holistic enterprise bargaining.

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The Economic Implications of Enterprise Bargaining

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