Impact of Neoliberalism on Australian Employment Relations

This article explores the impact of neoliberalism on employee relations in Australia, including changes in labour market, union reactions, and wage inequality. It also discusses the effects of neoliberalism on state, professional unions, and collective bargaining. The article highlights the negative impact of neoliberalism on workers' rights and the need for greater recognition of this issue.

Employee Relations
Impact of Neoliberalism on Australian Employment Relations
STUDENT NAME
10/16/2018

Neoliberalism: impact on employee relation 1
In today’s era, employee relation not only relates to the organisation’s efforts to manage
relationships between employer and his employees but it is considered as a legal notion and
the integral part of the organisation. Certain deliberate plans are formulated by the
organization, which aims at sustaining and achieving a competitive edge in marketplace over
the others, and on the other hand, it ensures an efficient working system and success within
an organization. An operative employee relationship programs have certain written policies
which describe the company’s rules, regulations and procedures related to its which resolves
the issues of the employees like pay and benefits, safe working conditions and balance work
life that fully ensures employee retention (Sanders , 2017).
Neoliberalism is an idea, which was based on political, economic and religious sector. This
strategy was formed to avoid social conflicts. This ideology emphasis on free market
competition, which is mainly, associates with laissez-faire economics (Parfitt and Wysocki,
2012). Neoliberalism often considers itself in context of sustainable economic growth with
the motive of minimal state intervention and promise to the freedom of trade and capital.
Although the term is similar but it is distinct from word liberalism, both have ideological
roots but modern liberalism is developed from social- liberal who majorly focused on
weaknesses of individual freedom that includes poverty, inequality and discrimination that
has been created directly through state intervention. This discussion was focused on
highlighting the amalgamation of these aforementioned concepts of neoliberalism and
employee relations, with a particular focus on Australian context (Johanna, 2013).
Before going into the detailed analysis on the stated topics, it becomes important to attain
clarity on what exactly employee relationship and neoliberalism stand for. Employee relation
focuses on those companies, which are having more than one employee relation

Neoliberalism: impact on employee relation 2
representatives. Who actually ensure the legal policies, which are to be followed fairly and
consistently, perhaps to generate a successful relation between employer and his employee it
can be done through proper communication, and the other most effective way is by
considering the employees as their stakeholders, which make them feel more valued for the
job they perform (Adrienne, 2012).
Coming to the second topic of this discussion, neoliberalism, which majorly highlights and
emphasis on the greater openness to international trade and investments, no more price
control and de-unionizing workers by reducing wages so all in all free movement of capital,
goods and services (krippner, 2005). Deregulation of government on everything, which
could diminish profits, and along with this also protecting the environment and security of
jobs. There major concentration is on cutting public expenditure for social services along
with this they are focusing on individual’s responsibility, by making poorest people aware
about their failures and helping them in finding solutions to their problems like lack of health,
education and social security all by themselves (Bockman and Johanna, 2013).
MAJOR IMPACT ON EMPLOYMENT RELATIONS IN AUSTRALIA
A major change within the employment relations has impact a change in labour market at
large. Firstly, the perception of unions has changed due to the lower unemployment rates, it is
believed that lower unemployment shifts a balance of power to employees rather than
employer as they implement the strategy of being dedicated and assured to their job. But by
the decline in manufacturing jobs and rise in service sector which leads to the fundamental
change like increments in part time and casual involvement of employers which has
incremented the satisfaction, changing lifestyle, increasing presence of women at workplace
has emerged the evolution of non- standardised work. Such changes have an impact on
overall development of employee relation; certain benefits are added in the list of the

Neoliberalism: impact on employee relation 3
employees, which highlights the universal view of relationship among the workers of
organizations(Metcalf,2017).
Prior to neoliberalism, International research has found that in Australian case, women who
are working in industries were identified at risk and that also reduces the scope of
employment protection, as managers alter condition unilaterally and terminate employees
much more readily. Later when neoliberalism ingrained the new policies, aiming to restrict
collective bargaining and further encouraging individual work contracts contributed to the
dynamic and positive view of employment by opportunity legislation among workers in
particular areas (Parfitt and Wysocki, 2012).
Foremost impact of changes in dual regions, one is ‘labour market’ and another is national
political backdrop which gives a trial for employee relation practician. Such major changes
have had an influence over the emergence of the female worker and evolution of rules and
regulations over employee relation legislation gave positive outcomes and provided benefits
and equal opportunity for all the workers. Moreover these changes have not only providing
strong foundation to employer – employee relationship and becoming more united
partnerships rather they also have a positive influence on evolution and becoming more
holistic in paramount lifestyle .
NEOLIBERALISM EVOLUTION AND UNION REACTIONS IN AUSTRALIA
Union strategy has diverse so largely, which reflects two major factors: the arbitration system
was one of the influential factors where unions played a vital role and another one, which
were based on, well-establish links to the parliamentary politics or Australian labour party.
Australian unions were trapped by the states that were more activist as linked to relations
arena. Australian union has gained some profits for memberships and also have to accept
those limitations which arise with an interventionist state role. So for this, the moment where

Neoliberalism: impact on employee relation 4
they put something forward, which are easily resembled to an substitute of social democratic
image for an economy to which led to the emergence of constrained neo-liberalism, which
emerges the critical weakness of unionism at the workplace. In Howard government, it
highlights the essential component of neo-liberalism was to maintain and support the capital
against organised labour (Monbiot,2016).
It was important to revealed and respond for the workplace union development because the
extensiveness of union visualization was narrowed outside the workplace. Therefore, survival
under Stalinist neo-liberalism was important or else to focus on collective mind. However,
few union movements with a focused mind were fruitful in achieving the foremost goal.
There are some rare union movements in universe, which had a remarkable achievement. Yet
unions have not established a modernised class but now they are approaching advocate
approaches like increased emphasis on union education, considering workplace and class
issues and also developing linkages with other communities’. While Australia’s comparative,
if prosperity is being linked to other countries, there is lack of clear philosophical position of
trade unions (David and Janis, 2011).
REMUNERATION ENEQUALITY AND NEOLIBERALISM EFFECTS - THE
AUSTRALIAN EXPERIENCE
Wage inequality in Australia were stagnation at lowest of the wage distribution but having
significant growth at the top are the two major features of it, the change in the wage structure
have contributed to growth to inequality among male and female workforce and change in
workforce composition have been of crudely equivalent essential. There major emphasis over
managerial flexibility, reduction in trade union influence, labour market deregulation, which
were the hallmarks of neo-liberalism. The persistence long term unemployment and under
employment along with the increment in casualization of work was the conspicuous features

Neoliberalism: impact on employee relation 5
for last 30 years. This highlights the downward pressure on wages of the labour market due to
these developments and hence explains the stagnant growth of real earnings ( Johanna, 2013).
A central element of neo-liberalism has been financialisation as it explains the expansion of
wages of the labour market, which entails the supplement the institutional perspective.
During 1980’s in Australia, there was a large flow of capital through the massive credit
expansion, property booms and resource sector booms, there was a rapid development in
finance and insurance industries, construction and mining industries and property services,
which was in regard of core neoliberal. But in some cases like human services remain
backward due to the neo-liberalism because they majorly rely on commodification and
having high profits opportunities but with enterprise bargaining, gains were magnified and
quantified to the most profitable sector. In Australia, a wide spread gain to industries were
due to wage fixing system and the flow of capital generated the impetus growth of wage
inequality (Waston, 2015).
NEO-LIBERALISM EFFECTS ON YOUNG PEOPLE’S INVOLVEMENT OF
EMPLOYMENT IN ILLAWARRA SECTION
In Illawarra, region young people accept the unjustified type of work as this remains vague
to them, this kind of employment is generally acknowledged the casual condition of life but
being desirable to unemployment. The concept of disguises the individual preferences and are
accountable to the poor quality of arrangement for young people and it is tough for them to
visualize any substitute but individuals have to go with the flow by looking for a better job
or stepping-stone to the better safety. Particularly sociological analysis and political
economic are taking undertaking projects under neoliberal ideology (Barbadozier ,2015) .
Many young individuals are arriving with local labour market outshined by risky
employment, this broader aspect ,concept and social impact of such work needs mandatory

Neoliberalism: impact on employee relation 6
focus on the research schedule to realize youth culture and comprehensive youth
modifications in education, training and work (Burrows, 2013).
THE EFFECTS OF NEOLIBERALISM ON STATE, PROFESSIONAL UNIONS AND
COLLECTIVE BARGAINING IN AUSTRALIA
A concept of neo-liberalism led by john Howard, directed the most significant renovation of
employment relationship in Australia, period starting from 1996 to 2007 particularly supports
the contagious form of neo-liberalism whose fundamental attack is on collective bargaining
(Rodrik, 2017). Many scholars consider neoliberalism regulations more complex and
directive as results associated to it are highly assorted between sectors, regions and industries.
They are more reliant on market power, which generates the complexities and point towards
deregulation of the labour market, this has majorly affected the work choices, productivity
and unionism and low paid to women. All the above aspect generates the conditions of
remaking of collective employees relation regime (Bal and Doci, 2018)
THE CURRENT STUDY
The present investigation states that neoliberal approaches indicates that organisation are
relates themselves with the failures in job value and pessimistic outcomes, including
decrement in sales and abandoning jobs. There is also in reduction in the casual patrician
training and efforts to underwrite smooth organisation workings where re-immersion
highpoints impeding developments of human capital as well as organisational success in long
run. The sociological outlook that discourse the ideology of neoliberal reforms states
that ,they are informal process that are substantial for hampering productivity and growth it
also highlights the biased focus is on short term profits and leads organisation to squander
their wealth. Centrals to this deprivation, which are unstable, erosion of efforts made by
employee’s leads to reduction in management commitments to the labour force and their

Neoliberalism: impact on employee relation 7
wellbeing. There was no growth and productivity with the application of neoliberal policies.
Through such practices, they states that by advocating the neoliberal reform they have a
major impact on wages of employees and increments in the fortune of investors but not
actually facilitated organisations progress and extension. Indeed neoliberal era has intense
attention over shareholder effectiveness leads to worsening job conditions. This constitutes a
policy of industrial rejection somewhat managing productive asset. Jobless progression and
economy’s financialization have become a major part of the discussion on era of
neoliberalism. This point towards the maximization of shareholder value rather than the
organisation’s outcomes because their major attention is on shareholders’ value, which unites
with organisational policies, which are based on neoliberalism, because it permits short-term
revenues while evading tough and undefined work of creating expansion and enhancement.
Highlights about this perspective, neoliberalism is unfavourable for employees and
undermines foundation of organisational progress. Productivity which addressing to such
problems can only be solved by the greater recognition of the negative impact of
neoliberalism over the employees of the organisation. Some observations have suggested that
their no standard employment relationship due to this .A ray of hope, returning to old ways of
working by adopting creativity and by abandoning neoliberalism.
In the light of evidence, due to neoliberalism, Australian labour market has faced gender
equality, in last 25 years it was detected that there were increment in women employment and
rise in the total jobs and having a great workplace restructure, indeed in recent years, the data
highlights a drop in full time jobs. Neoliberal philosophies states that it is analysed that their
been fall of industries and are progressively decentralized along with this they have also
analysed that employees negotiated directly with the employer for their salaries and working
conditions therefore it was very complicated to judge values for both monetary and non-
monetary benefits. Unions played a key role in this situation; the absence of unions generated

Neoliberalism: impact on employee relation 8
substantive losses for vulnerable employees because unions were the essential source of
knowledge and information.
From the overall discussion, it was determined that Neoliberalism idea solely and entirely
swallowed up the world by forceful deregulation on economies and by powerfully opening of
national markets to trade and capital, government contraction through austerity, inequality led
to losses of political values and ideas. Neoliberalism was connected with openness to global
trade and investments but it generates a negative impact on workers’ rights, they are more
inclined towards global economy participation rather than focusing on workers protection
these results in dynamic change regarding the global capital and labour rights. They have
much positive aspect concern towards economic growth yet they have criticism regarding the
distribution of resources, which are inequitable. As according to economy concern, middle
and working class employees find it more difficult to accomplish all benefits out of it, the
poor class fall under poverty line and it became harder to search jobs for them as their
benefits out of government decreased. Therefore, the best recommendation regarding
neoliberalism is not to opt it as its effects until date creates the bigger gap between the poor
and the rich. Speculative money from deregulation has not at all helped in economic
development rather it contributed towards financial instability, which causes the credit
crunches and broader economic shocks. It leads to the monopoly power like skilled workers
demands higher wages as compared to the low skilled workers and have more likely to have
stagnant wages. With this conclusion, it causes an insignifant reaction about neoliberalism in
context to employee relations, as it tends to have more emphasis on employees growth
through individualism and to the intangible factors, which are affecting the quality of life and
wellbeing.

Neoliberalism: impact on employee relation 9
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