Chapter 11

• Trade unions are based on employees, their rights and their interests. These unions are united and are funded through memberships.
• Unions can restrict supply of labor by engaging in strikes, and exercise strength of bargaining power when negotiating with employers. However, this depends on the percentage of individuals who are actively a part of a union.
• Employer associations are groups of employers who work together to influence government policy and regulation. These are often in more competition with each other. They can influence the government on issues affecting employers and assist industrial relations for employers.
• Employer associations can further encourage competition between employers for labor.
• Industrial relations framework from the government, regulates the relationship between employers and employees. These are responsible to set awards (minimum wages for certain roles) and resolve disputes between unions and employer associations.
• Centralised Industrial Relations System


  A system where the government plays a dominant role in settling industrial disputes and setting wages and conditions.
• Decentralised Industrial Relations systems

  When the government doesn't participate in the decision of setting industrial disputes, wages, and/or conditions of the employees and employers
• Industrial relations framework focuses on a centralised industrial relations system to ensure disputes are resolved. This is government controlled and is an example of a positive externality.
• Unions have a collective bargaining strength since one employee can be easily replaced, however, a workforce cannot.
• Higher bargaining strength from unions means they can better impose the wages and term for the employer
• National employment standards set the system of awards
• enterprise agreements are the most common way to settle wage outcomes. They are negotiated between employers and groups of employees (from unions)