Wage Stagnation in Australia: Legislation, and Wage Determination

This essay delves into the issue of wage stagnation in Australia, analyzing the impact of legislative changes and the decline of union power on wage growth. It examines the role of the Fair Work Act, the evolution of wage determination systems, and the influence of factors like contract-based work and casualization. The paper explores both centralized and decentralized wage determination models, weighing their advantages and disadvantages, and discussing how these systems affect workers' wages, industrial relations, and the broader economy. It highlights the historical context of wage determination, including the shift from centralized systems to enterprise bargaining, and assesses the implications of these changes on workers' bargaining power and overall economic conditions. The essay also touches on the role of institutional forces like employers, employees, government, and trade unions in shaping labor market outcomes and influencing the dynamics of wage determination.