Work, People and Globalisation: Towards a New Social Contract for Australia

By Russell D Lansbury

Those who advocate for even more deregulated and individualised forms of industrial relations in Australia argue that the forces of 'globalisation' provide no alternative.

Yet other countries, particularly in Northern Europe, have retained strong labour market institutions to provide adequate social protection while competing effectively in the international economy. Instead of seeing globalisation as a threat that make such deregulation necessary, Australia should be supporting international agencies, such as the International Labour Organisation (ILO), to assist other small nations to strengthen the rights of their citizens in the workplace and the labour market.

To ensure that Australia remains both a prosperous and equitable society, we need a new social contract or partnership between employers, workers, unions, community organisations and government. The three pillars of a new social contract comprise policies that are well established in many of the advanced industrialised societies. The first pillar is an active labour market policy that has long been advocated by the Organisation for Economic Co-operation and Development (OECVD) and would see resources invested in job creation rather than job reduction. The second pillar is the rebuilding of Australia's skills and intellectual capital by encouraging greater investment in training and development of the workforce. The third pillar is the establishment of a national superannuation scheme to ensure both universal coverage and secure entitlements. To achieve these goals the federal government must develop a comprehensive industrial relations policy that involves greater regulation of the labour market and restoration of labour market institutions to ensure more equitable wages and working conditions.

(Journal of Industrial Relations. vol. 46, no. 1, March 2004)