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An Empirical Analysis of Australian Strike Activity: Estimating the Industrial Relations Effect of the First Three Years of the Prices and Incomes Accord

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  • JOHN J. BEGGS
  • BRUCE J. CHAPMAN

Abstract

Australian strike activity war relatively low in the 1983(2)‐1986(1) period. Some part of this experience is attributable to changes in the macroeconomic environment and some is a consequence of improvements in industrial relations. This paper attempts to determine the role of each by estimating econometric models for the 1959(3)‐1983(1) period and forecasting indicators of strike activity over the subsequent three years. We find that working days lost per unionist decreased because of macroeconomic conditions, but that these variables explain less than half of the actual decline. This suggests that, for the initial three‐year period of its institution, the Accord helped deliver a favorable industrial relations environment, a situation that is not necessarily long‐lasting. More generally, the results show strike activity to be pro‐cyclical and influenced by profits and inflation.

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  • John J. Beggs & Bruce J. Chapman, 1987. "An Empirical Analysis of Australian Strike Activity: Estimating the Industrial Relations Effect of the First Three Years of the Prices and Incomes Accord," The Economic Record, The Economic Society of Australia, vol. 63(1), pages 46-60, March.
    • Handle: RePEc:bla:ecorec:v:63:y:1987:i:1:p:46-60
    DOI: 10.1111/j.1475-4932.1987.tb00636.x
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    References listed on IDEAS

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    1. Chapman, B.J., 1986. "Wage Policy Perspectives on the Accord," Economic Analysis and Policy, Elsevier, vol. 16(1), pages 1-17.
    2. Hayes, Beth, 1984. "Unions and Strikes with Asymmetric Information," Journal of Labor Economics, University of Chicago Press, vol. 2(1), pages 57-83, January.
    3. Albert Rees, 1952. "Industrial Conflict and Business Fluctuations," Journal of Political Economy, University of Chicago Press, vol. 60(5), pages 371-371.
    4. Perry, L J, 1979. "Inter-War Wage Movements and Trade Union Militancy in Australia," Australian Economic Papers, Wiley Blackwell, vol. 18(33), pages 229-242, December.
    5. Phipps, A J, 1977. "Strike Activity and Inflation in Australia," The Economic Record, The Economic Society of Australia, vol. 53(142&143), pages 297-319, June-Sept.
    6. Bentley, Philip & Hughes, Barry, 1970. "Cyclical Influences on Strike Activity: The Australian Record 1952-68," Australian Economic Papers, Wiley Blackwell, vol. 9(15), pages 149-170, December.
    7. A. J. Phipps, 1977. "Strike Activity and Inflation in Australia," The Economic Record, The Economic Society of Australia, vol. 53(3), pages 297-319, September.
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    Cited by:

    1. Paul Miller & Charles Mulvey, 1993. "What Do Australian Unions Do?," The Economic Record, The Economic Society of Australia, vol. 69(3), pages 315-342, September.
    2. John J. Beggs & Bruce J. Chapman, 1987. "Declining Strike Activity in Australia 1983–85: An International Phenomenon?," The Economic Record, The Economic Society of Australia, vol. 63(4), pages 330-339, December.
    3. Peter Cook, 1992. "The Labor Government's Industrial Relations Policy: Flexibility with Equity," The Economic and Labour Relations Review, , vol. 3(1), pages 112-125, June.
    4. James McDonald & Harry Bloch, 1999. "The Spillover Effects of Industrial Action on Firm Profitability," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 15(2), pages 183-200, September.

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