Prices and Incomes Accord to Australian Workplace Agreements
Hawke as Prime Minister - The Prices and Incomes Accord
After less than three years in Federal Parliament, Bob Hawke was elected Prime Minister of Australia on 11 March 1983.
In response to rising inflation, Hawke introduced the Prices and Incomes Accord (Accord), an agreement between the Australian Labor Party and the ACTU in which unions agreed to stop seeking wage increases. In return, the Hawke Labor Government would introduce entitlements and benefits that would improve the quality of life and working conditions for Australians, a ‘social wage’.
The agreement underpinned the social progress of the Hawke-Keating era, which introduced reforms such as Medicare, superannuation, development of childcare, and Family Income Support.
During the Hawke and Keating Prime Ministerships there were a number of Accord agreements, the original Accord, and the Accords Mark II – Mark VII. Accord Mark VII introduced the concept of enterprise bargaining.
The number of industrial disputes fell during the Accords and inflation was brought under control, but there was criticism and not all unions restrained from wage demands, in particular the Builder’s Labourers Federation continued to seek wage rises.
In 1988, the Industrial Relations Act 1988 was passed, and the Australian Conciliation and Arbitration Commission became the Australian Industrial Relations Commission.
Enterprise Bargaining and Australian Workplace Agreements (AWAS)
The Accords were abandoned after the Howard Liberal Government was elected in 1996. The Liberal government was opposed to wage fixing and believed that the free market should determine wages.
With the passing of the Workplace Relations Act 1996 came the introduction of Australian Workplace Agreements, or AWAs.
An AWA was a formal agreement between an employer and employee about the terms and conditions of employment, could override employment conditions contained in state and territory laws, operated to the exclusion of Awards, and reduced the ability of unions to intervene through industrial action and collective bargaining during the life of the agreement.
In 1998, stevedoring company Patrick Corporation sought to restructure its operations by dismissing their unionised workforce and locking them out. The Howard Government supported this action and encouraged a non-union workforce.
Explore more
- ACTU-Labor Accord that helped shape Australia is gone, but not forgotten - ABC (2018, February 20)
- Australian politics explainer: the Prices and Incomes Accord - The Conversation (2017, April 24)
- When individual contracts and AWAs are not the answer - Alternative Law Journal (1998)
Sources
- Australian Government. (1988). Industrial Relations Act 1988. Federal Register of Legislation. https://www.legislation.gov.au/Details/C2004A03679
- Australian Government. (1996). Workplace Relations and Other Legislation Amendment Act 1996. Federal Register of Legislation. https://www.legislation.gov.au/Details/C2004A05064
- Australian Labor Party. (1983). Statement of accord by the Australian Labor Party and the Australian Council of Trade Unions regarding economic policy. https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:%22library/partypol/992745%22
- Prices and Incomes Accord. (2021, July 11). In Wikipedia. https://en.wikipedia.org/wiki/Prices_and_Incomes_Accord
➥ For information on the library's collection, visit the Bob Hawke Guide or explore the Bob Hawke Collection.