Globalisation and labour market deregulation in Australia and New Zealand: Different approaches, similar outcomes

The labour markets of Australia and New Zealand have been regulated in similar ways, through industrial conciliation and arbitration, since the early 1900s. Globalization and market deregulation generally have led to intense pressure for greater labour market flexibility in both countries. In New Zealand, flexibility was achieved by a radical dismantling of the industrial relations system. What had been essentially a multi‐employer bargaining system was replaced with a system that supported individual employment contracting. In Australia, conciliation and arbitration remained protected by the constitution; however, industrial relations reforms aimed at severely weakening the system were implemented in the 1990s. This paper compares various labour market outcomes across both countries. The trends in both countries are similar despite maintaining different systems. Collective bargaining coverage has dropped. Collective bargaining outcomes have seen reductions in benefits, and significant changes in working time arrangements. Union density has dropped, as also has public sector employment.