The paper "Australia: Labor, Finance, and Industry Competition" is an outstanding example of an essay on macro and microeconomics. The aim of this essay was to establish the role of the fair work commission, the effect of deregulation in the Australian financial system in the 80s, and the importance of national competition policy. Fair Work Commission is an independent body mandated to enforce and regulate provisions relating to termination of employment, minimum wages and employment conditions, dispute resolution, industrial action, and enterprise bargaining (Williams, 2014). Changes and structures in the Australian financial sector deregulation process of the 1980s were geared to remove controls over the interest rates and gave banks a degree of freedom to compete (Harper, 1985).
The development of the National Competition Policy process was meant to embrace the broader public policy direction that drew on consultation and coordination mechanisms of the Commonwealth led the process (Arup & Wishart, 2002). The essay has found the adoption of the Fair Work Act has improved productivity in the Australian labor market. Deregulation brought efficiency in the financial sector while national competition policy provided an equal platform for government and private sector companies. The role of the Fair Work Commission in regulating the Australian Labor Market The Fair Work Commission (FWC) is a tribunal of Australian industrial relations created by the Fair Work Act 2009.
The Fair Work Act of 2009 gave the commission important functions to regulate industrial relations and employment in Australia (Teicher et al. 2012). Some of the functions included handling claims for unfair dismissal, approval of enterprise agreements, dispute resolution, fixing a minimum wage, and varying and setting of modern awards (Sloan, 2009).
Regulation of the labor market in Australia is important because labor is a basic input to its economic activity. Labor input flexibility, quality and availability influence investor decision making while an efficient labor market ensures labor is achieved at least cost, resilience to shocks, provides incentives for training and innovation, and allocated to its best use (Forsyth & Stewart, 2009). Australia intervenes to a higher degree to achieve social policy objectives and offset perceived market failures especially with regard to minimum wages.
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