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Penalty Rates and Enterprise Bargaining

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  • Stephen P. King

Abstract

Industrial relations procedures in both Australia and New Zealand are changing from a system based on centralised arbitration towards enterprise level negotiation. This article considers how this change will affect overtime and other penalty rate payments. In particular, we show how, despite the existence of a legislative ‘safety net’, enterprise level negotiations can lead to the widespread removal of penalty rates, possibly to the detriment of both employees and employers. Such changes will, however, enhance competition and benefit consumers.

Suggested Citation

  • Stephen P. King, 1993. "Penalty Rates and Enterprise Bargaining," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 26(4), pages 58-64, October.
    • Handle: RePEc:bla:ausecr:v:26:y:1993:i:4:p:58-64
    DOI: 10.1111/j.1467-8462.1993.tb00811.x
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    References listed on IDEAS

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    1. Steve Dowrick, 1993. "Enterprise Bargaining, Union Structure and Wages," The Economic Record, The Economic Society of Australia, vol. 69(4), pages 393-404, December.
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