Workplace Democracy in Australia: The Arc of History and Nordic Influence

Workplace democracy initiatives in Australia have been led mainly by Labor governments and supported by industrial relations institutions rather than taking a ‘social partnership’ approach as practised in Nordic countries where there is a tradition of collective bargaining as well as other opportunities for worker voice and influence. During periods of Labor government in Australia in the 1970s and 1980s, there was interest in Nordic approaches to workplace democracy but this did not translate into long-term changes at either industry or national levels. For many decades, the long-established centralized system of industrial relations in Australia, based on compulsory arbitration of disputes, provided unions with rights and influence but discouraged other approaches to workplace democracy. However, in recent years, the decline of unionization and the decentralization of the industrial relations system have called into question the effectiveness of the arbitral system providing for worker voice and representation. This has stimulated some new initiatives. The Fair Work Commission has developed a ‘collaborative approaches program’ to encourage greater partnership arrangements between unions and employers. The current Australian Labor government has strengthened union rights but not expanded workplace democracy.