Australian HRM and the Workplace Relations Amendment (Work Choices) Act 2005

Abstract

This speculative piece predicts that the Workplace Relations Amendment (Work Choices) Act 2005 will encourage a range of different strategic responses among employers regarding HRM policy and practice. Firm size, product and labour-market conditions, employer culture and union presence influence strategy formulation. The Act will intensify the ‘low road’ tendencies of certain industries, particularly as it structurally individualises employment relations for significant segments of the workforce by transferring them from awards to AWAs. Over time too, through its attack on union functioning, it will put downward pressure on industries and market segments that now provide better employment conditions. At present, shortages of skilled labour are a principal factor neutralising these downward pressures and encouraging creative, high-commitment HRM strategies. Smaller firms without specialist HRM functions will largely focus on compliance and the low road. HRM professionals in larger firms will have opportunities to pursue a broader range of policy choices.