Equity and efficiency: the case of Australian workplace agreements

Research Doctorate - Doctor of Philosophy (PhD)This thesis investigates the claims in the literature that 'modern' individualism encourages employment practices which lead to more economically efficient outcomes and higher rewards for employees that can be achieved under a collectivist system. In doing so, this thesis seeks to contribute to the often impassioned debates (academic and policy) over whether individualised employment relations are more equitable and more efficient than other forms of employment relationship. Specifically, this thesis investigates why AWAs have been used in Australian workplaces and their impact on both employers and employees. The empirical analysis of these questions is conducted within the context of a poorly unionised industry which has traditionally relied on the centralised award system: the hospitality industry. This industry was selected as the 'critical case' because of its traditional reliance on centrally determined wages and working conditions, and the prevalence of low skilled, non-unionised workers whom the literature often considers to have weaker bargaining power than skilled and/or unionised workers. The research is based to a large extent upon case studies in four diverse organisations in the hospitality industry. These organisations were chosen to provide examples of the underlying motivations for using AWAs, and their impact on employees and employers. The case study strategy is further strengthened by quantitative content analysis of 106 AWAs drawn from the hospitality industry, and a comparison of their contact with the content of hospitality industry collective agreements. The research reveals that statutory individual contract systems are not a guaranteed mechanism for promoting both equity and efficiency in industries such as hospitality. Rather, some employers use individualism as a tool specifically to marginalise external influence at the workplace, namely that of trade unions. The research provided examples of where AWAs have been used to create the opportunity to unilaterally introduce lower wages and conditions which would be almost impossible to negotiate collectively. The focus of this thesis on a specific legal and institutional manifestation of individualism in the Australian context does not preclude a wider application of the research findings. Indeed, the final chapter of the thesis concludes that the failure of the market protections espoused by neo-liberals renders individualism an inappropriate mechanism to ensure both organisational efficiency and equitable outcomes for employees