Trade union participation in public policy-making: the rise and demise of Australia's national retirement income regime

Australia's Federal Labor Government was elected in 1983 on a socialdemocratic platform, promising Swedish and West German style social andindustrial reforms. New relations developed between government and unions inwhich the latter became an increasingly powerful participant in neo-corporatistarrangements. Through reform of the national retirement income regime, unionsgained new power together with some control of large occupational superannuationfunds, occasioning a major shift in the ownership of capital in Australia. These areunique developments in this country's history with far-reaching political, economicand social consequences.Empirical research undertaken during the progress of these changes, and theresearcher's own professional involvement in the field, provide the basis for this firstdetailed sociological analysis of both the social forces and political dimensions involved,and of the resultant re-alignments of social power and political authority incontemporary Australian society. Three propositions were explored — direct unionparticipation in public policy-making benefits the wage-dependent; union participationin neo-corporatist arrangements socialises the processes of national economic planningand public policy-making; incorporation of unions in neo-corporatist arrangementsdemobilises the unions and their members.The main findings do not support any simplistic or optimistic view of thesedevelopments. While unions were the instigators of these policy changes, the dynamicprocesses of strategic neo-corporatist policy formation, political and industrialexpediency, enduring economic vulnerability and a new political rationality intervened toproduce policy patterns and institutional arrangements that diminished the benefits ofthese changes for the wage-dependent. There has been no socialisation of the processesof national economic planning or policy-making. Rather, Australia’s emerging neocorporatistarrangements are unrepresentative, undemocratic, and biased towards the interests of capital, particularly finance capital. Class mobilisation, direct industrialaction, demands for job protection, industrial democracy and radical social change haveall become marginal issues for the unions. Moreover, union leaders' commitment toelectoral and economic priorities have increased their alienation from their members, andthe general lack of participatory democracy in neo-corporatist arrangements has furtherdemobilised unions and their members alike. Even so, a 'window of opportunity' can stillbe identified that may yet permit progress towards economic democracy