Towards a More Sophisticated Debate about Industrial Relations and Productivity Growth in Australia

Abstract

Appendix 4 of the SJBP Act Review’s Draft Report argues that the debate in Australia over the link between industrial relations and productivity has been ‘unsophisticated’ and ‘self-interested’. The Appendix does not pretend to be a comprehensive survey of productivity or its links with industrial relations. Rather, its aim is to promote a conversation that might make the debate more balanced and realistic. Towards this end, the Appendix makes several key points:

• The discussion of productivity is often constrained by the perspective (or frame of reference) of the commentator (pp. 375-6).
• The definition and measurement of productivity varies considerably according to the ‘level’ in question. In particular, the dominant focus of productivity measurement is on ‘national’ data or trends, to the substantial neglect of the industry or enterprise (pp. 376-384).
• Debates about the distribution of productivity growth are just as important as those about its generation.
• Analysis of the causes of productivity growth (and related prescriptions for promoting productivity growth) vary considerably:
  • according to the perspective of the analyst (pp. 375-6);
  • at different levels (compare pp. 384-88 and pp. 388-93);
  • because they rarely focus on the mechanisms by which various causes contribute to productivity growth;
  • on the importance (or not) of industrial relations;
  • by neglecting causes like gender (and wage) equality and/or collective bargaining at national level (pp. 384-89);
  • by downplaying or forgetting the potential impact of gender equality at enterprise level (pp. 390-1);
  • by avoiding the significance of collective bargaining and/or cooperative relationships at enterprise level (pp. 391-93).

Speaker

Mark Bray held the Foundation Chair in Employment Studies at the University of Newcastle from January 1997 until his retirement in early 2021, when he was appointed Emeritus Professor. He is also Honorary Professor at the University of Sydney and RMIT. Mark holds degrees from University of Sydney, Warwick University (UK) and University of NSW. He was also lead author of Australia’s leading university textbook in industrial relations (the last edition being entitled Employment Relations: Theory and Practice, McGraw-Hill, 4th Edition). He has continued to research and publish since his retirement, exploring long-term trends in collective bargaining, workplace cooperation and the role of the Fair Work Commission in Australia. From the beginning of October 2024 until the end of March 2025, Mark serves with Professor Alison Preston as the Independent Panel reviewing the Secure Jobs, Better Pay Act (Cth). This legislation passed federal parliament in December 2022. Profs Bray & Preston submitted a Draft Report at the end of January this year. The Draft Report was followed in mid-February 2025 by a further round of face-to-face consultations with stakeholders (essentially, employer and union representatives) and written submissions. As of mid-March, the Final Report is with editors. It will be presented to the Minister at the end of March and thereafter to federal parliament.