Topic 4: Labour   Markets                           

TERM

DEFINITION

Award

These are minimum wages and working conditions legislated by the government or an industrial tribunal.

Casualisation of labour

The trend to employ an increasing proportion of the workforce as casual workers.

Derived demand

A demand for consumer goods creates a demand for those resources used in their production.

Employer association

Trade associations and federations of employers formed to represent employers and to advance their interests.

Enterprise bargaining

The process of negotiation between employers and employees (and or unions) in regard to industrial relations issues, such as wages and conditions.

Enterprise agreement

An agreement reached through enterprise bargaining that states the working conditions in that enterprise, industry or business.

Human capital

Human Capital is the value of a person's education, skills and experience. Increased human capital will generally increase productivity.

Individual contracts

A contract made between an employer and an individual employee dealing with the working conditions that will apply in that job.

Industrial dispute

A dispute or disagreement in the work place that causes a stoppage of work. These disputes often relate to managerial policy, wages, physical working conditions and hours of work.

Industrial relations

The branch of economics which studies the relationship between employers and employees. It includes:

1.Individual relations and joint consultations between employers and employees at the place of work.

2.Collective relations between employers and their organisations and trade unions.

3.The part played by the government in regulating these relations.

Industrial relations commission

Industrial relations commissions or tribunals are agencies set up by the federal or state governments to consider issues such as industrial dispute resolution, award determination and enterprise agreement registration.

Mobility of labour

The ease with which labour can be transferred from one occupation to another, or from one geographical location to another.

Non-wage outcomes

Benefits from working that are not related to wages, such as superannuation, sick leave and holidays.

Outsourcing

The practice of giving some tasks in a business to other organisations outside of your organisation. These tend to be specialist services that are not part of the business' major function, eg employing a marketing firm to advertise a firm's product.

Participation rate

The proportion of the working age population, 15-65 years old, recorded as either in work or looking for work.

Remuneration

A payment or compensation for labour, such as wages and non-wage benefits.

Unemployment

The number of workers who are part of the workforce and are not employed but are actively seeking employment.

Unemployment rate

Unemployment expressed as a percentage of the labour force.

Union

A body that represents workers in a particular occupation or industry. Their aim is to protect and improve the rights of workers. They are part of the negotiation and industrial relations process.

Workforce

The total number of available workers in an economy, at a particular time. The workforce may be classified according to those in various types of employment and those unemployed, but actively seeking work. Also known as the labour force.