Neo-Liberalism Development in Australia - Essay Example

Running Header: Neo-Liberalism Student’s Name: Name of Institution: Instructor’s Name: Course Code: Date of Submission: What Has Been the Impact of Neo-Liberalism on Employment Relations in Australia Since 1990s? Neo-liberalism has been defined as a set of economic policies whereby the control of economic factors has moved from the public sector and is now in the private sector. It is described as an economics and social studies approach that is based on the neoclassical theories of economics. Neo-liberalism can be explained as an approach to economics that emphasizes on relatively open markets, liberalized trade activities and the efficiency of the private sector enterprises (Plant 2009). Neo-liberalism seeks to promote how the private sector determines the economic and political priorities of a country. The principles proposed by neo-liberalism seek to promote a free market (laissez-faire) environment so as to encourage economic development. Neo-liberalism is concerned with pushing the government to make certain changes to the economic environment so as to promote fairness and ensure steady economic growth. Some of these changes include: limiting protectionism so as to open up markets to trade, support deregulation, limiting subsidies, broadening tax base by reforming tax laws, privatizing state-run corporations, reducing deficit spending, allowing private property and removing fixed exchange rates (Bell 2006). Employment relations can be explained as the body of work or practice that is concerned with maintaining useful relationships between the employer and the employers. Employment relations is concerned with promoting meaningful employee-employer relationships that are pertinent to productivity, morale and motivation. In essence, employment relations seeks to prevent and resolve problems that involve individuals at work and which can arise out of work situations or affect work situations. It resolves conflicts. Some of the main actors in employment relations include employees, employers, trade unions and the government (Bray 2009). Australia has experienced changes politically, economically and socially over the years. Politically, before the 1788, the shape of Australia has not always been what it is today. It was part of a great land known as Gondwanaland. It slowly drifted away and traces of civilization began to be seen with the Aborigines. Australian Aborigine culture slowly developed. Politics in Australia began when the British came to colonize the country from 1788-1900. Between 1901 and 2000, Australia experienced the post federation period. The political framework has since changed. Politics within Australia is today guided by a framework of parliamentary democracy. The electoral procedures have also changed to suit a two party system. This means that Australia is today governed as a constitutional monarchy and as a federation. Parliamentarians in Australia are elected into parliament by the citizens. Australia has six states and two major territories which hold elections after every four years. There are both major and minor political parties in Australia. Most recent political changes have seen women take up high political positions such as the current Prime Minister, Julia Gillard (Bell 2007). Socially, life in Australia has also experienced a lot of changes in the remote areas, the city, the suburbs and the regional towns. Social change has been brought by the government, social expectations, globalization and businesses. Statistics presented by the 2001 census report of Australia show that there have been many social and family life changes over the past few decades. There are very few people getting into formal marriages and the number of people divorcing has sky rocketed. Childlessness has greatly increased and more people are living alone than ever before. People are increasingly delaying marriage while others are not marrying at all. Divorce rates have hit a historical high. The average household capacity in Australia has shrunk drastically. Households are dominated by single parents, people living alone and childless couples. The proportion of women who have never had children has also increased to the highest levels since the 1930s. Critics have blamed moral decay and ‘selfishness’ for the declining birth rates and marriages and the increasing divorce rates (Plant 2009). Economically, Australia has also experienced historical changes. During the colonial days, most economic activities were controlled by the British colonizers who enjoyed most of the proceeds. After independence, the situation took a different turn. There was the establishment of industries that were mostly rural based. People concentrated on the rearing of livestock and production of wool. After the end of the 2nd World War, Australia had become industrialized and this was evident with the presence of many factories that dealt in different products. Australia had been literally cut off from the rest of the world during the middle of the 2nd World War. After the war, it therefore became economically independent since it had to support itself. It began to produce its own food, textiles, chemicals, footwear, motor vehicles and many other products. It even got into building its own ships and planes. It became an exporter of products to other countries such as the coal it exported to Japan. It is currently economically empowered to the extent that the government sometimes restricts imports so as to promote its own productivity and economy (Sappey 2006). To a very great extent, these political, social and economic changes are neo-liberal in nature. Neo-liberalism has been described as an approach to economics that involves the empowerment of the private sector. In neo-liberalism, individuals are empowered and encouraged to make changes that will stimulate economic growth and development. In regard to the economic, social and political changes experienced in Australia, characteristics of neo-liberalism are very evident. For example, the social changes that are taking place such as the high rates of divorce, childlessness and people living alone are all forms of people living a liberal life where they get to do what they want without being controlled. Economically, Australia has undergone a lot of changes too. The gaining of independence from the British colonizers was a step that has neo-liberal characteristics. This is because the country freed itself from bondage and control. The political changes that have seen Australia turn into a democracy are also an example of neo-liberalism because they show how the people have been empowered politically (Plant 2009). Neo-liberalism has had great impact on employment relations in Australia since the 1990s. Both the Liberal Party and the Labour Party have embraced neo-liberal economic policies since 1983. Between 1983 and 1996, the governments that ruled Australia sought economic liberalization and other programs that would ensure micro-economic reforms. During this period, many government corporations have been privatized by the government. Many factor markets have also been deregulated in an effort to promote free trade. Trade protection has also been reduced by the Australian government and the Australian dollar has been greatly floated. In 1992, a compulsory superannuated guarantee system was implemented so as to increase national savings and reduce the liability of the government in future to pay old age pensions. Even the education sector was affected when university students were required to contribute to their university fees through a loan scheme that was repayable. The universities were also encouraged to admit full-fee-paying students and foreign students so as to increase their income. Economic liberalization continued to be experienced and this could be seen through the sale of major state corporations such as Telstra. The Reserve Bank of Australia could even determine monetary policy independently from the government. There have been many other numerous reforms brought about by neo-liberalism such as the introduction of a 10% goods and services tax and deregulation of the labor market among others (Teicher 2009). All these actions, steps and policies are forms of neo-liberalism. Employment relations in Australia have been greatly impacted by neo-liberalism. The rise of neo-liberalism for example has led to the challenges being faced by social workers. This is in the sense that the relevance and value base of social work has undergone problems. In most workplaces, there has been the advocacy to break away from state interference since companies are seeking to be independent. Since the government is also a key player in employment relations, it has had to change its stand on very many issues so that it can be in agreement with other key players in employment relations such as employees, employers and trade unions (Teicher 2010). Neo-liberalism has also seen the rise of more and more trade unions that have seen many workers come together to fight for their rights. With neo-liberalism, workers are now banding together so that they can achieve common goals such as advocating for better working conditions or better pay among other issues. Neo-liberalism has empowered trade unions to use their leaders to bargain with employers or the government on behalf of members of these unions. Neo-liberalism has also given trade unions the power to negotiate labor contracts with employers. This is what is commonly referred to as collective bargaining. Neo-liberalism has empowered trade unions in Australia to unite and form the Australian Council of Trade Unions (ACTU). 46 unions have come together to represent over 1.8 million workers. This means that their issues are now addressed using better channels and they can fight for any of their rights if it is being violated, thanks to neo-liberalism (Teicher 2006). With neo-liberalism, more and more workers are having access to better working conditions. Since neo-liberalism advocates for privatization of public firms, the Australian Government has privatized and sold off many state corporations. Most public corporations are known to be affected by poor management, corruption, poor working conditions and poor payment of workers among many other problems. With privatization, most of these problems are adequately dealt with. Research shows that when companies are left t private investors, they are more successful for a number of reasons. The most crucial of these reasons is better management of these institutions. With better management comes other advantages such as employee satisfaction, high rates of productivity, good coordination of activities and finally high returns in terms of profit. This has also seen the relationship between employees and their employers improve as a result of better management that has ensured better working conditions. The interests of workers is also taken more seriously with these private corporations. Neo-liberalism has seen many public firms turn private and this has boosted the economy of Australia (Bell 2007). Neo-liberalism has also impacted employment relations by changing the way in which goods and services are produced and distributed in society. These range from consumable goods such as household utilities to public goods and services such as healthcare and education. Most of these services have greatly been improved as a result of neo-liberalism. Neo-liberal movements have been advocating for the improvement of producing and distributing goods and services, especially public ones. The government has had to bow to this pressure most of the time and has taken various steps to ensure that the production of these goods and services (Bray, 2009). Neo-liberalism has impacted employment relations by helping to maintain useful relationships between the employer and the employers. The principles of neo-liberalism provide a framework for conflict resolution among the key players/actors in employment relations. Since employment relations is concerned with promoting meaningful employee-employer relationships that are pertinent to productivity, morale and motivation, neo-liberalism can be said to contribute to productivity, morale and motivation. This is because these factors are supported by the principles that are advocated by neo-liberalism. Employment relations seeks to prevent and resolve problems that involve individuals at work and which can arise out of work situations or affect work situations. Neo-liberalism has therefore impacted employment relations by encouraging key players to resolve conflicts whenever they arise (Plant 2009). Since the 1990s, neo-liberalism has helped to change the work place situation by supporting deregulation which has seen many regulations being revoked. Protectionism has also been reduced and private investors have been given the go ahead to get into active businesses that have great impacts on the Australian economy (Sappey 2006). In conclusion, neo-liberalism has brought about a lot of changes to the Australian employment relations scene. Employers, employees, trade unions and the government have disagreed on a number of issues in the past. Each of these parties has been on the forefront to protect their interests. Neo-liberalism has ensured that the interests of each actor mentioned above is adequately taken care of. It has given a voice to the actors such as employees and trade unions who could not previously raise their concerns without creating problems. Neo-liberalism has had a lot of impacts on employment relations since 1990s as have been discussed in the essay. References Bell, S & Quiggin, J 2006, ‘Asset price instability and policy responses: the legacy of liberalization’, Journal of Economic Issues, vol. 40, no. 3, pp. 629-649. Bell, S 2007, ‘A victim of its own success: internationalization, neo-liberalism and organizational involution at the businesses council of Australia’, Politics and Society, vol. 34, pp. 543-70. Bray, M, Waring, P & Cooper, R 2009, Employment relations: theory and practice, McGraw Hill, North Ryde. Plant, R 2009, The Neo-liberal State, Oxford, Oxford University Press. Sappey, R, Burgess, J, Lyons, M & Buultjens, J 2006, Industrial Relations in Australia, Pearson Education Australia, Frenchs Forrest. Teicher, J, Holland, P & Gough, R (eds) 2006, Employee relations management: Australia in global context, Pearson Education Australia, Frenchs Forest, N. S. W. Teicher, J, Holland, P, Pyman, A & Cooper, B 2009, ‘The development of alternative voice mechanisms in Australia: the case of joint consultation’, Economic and Industrial Democracy, vol. 30, no. 1, pp. 67-92. Teicher, J, Pyman, A, Holand, P & Cooper, B 2010, ‘Industrial relations climate, employee voice and managerial attitudes to unions: an Australian study’, British Journal of Industrial Relations, vol. 48, no. 2, pp. 460-48. Read More

 

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