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Penalty Rates and Enterprise Bargaining
Author(s) -
King Stephen P.
Publication year - 1993
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/j.1467-8462.1993.tb00811.x
Subject(s) - overtime , negotiation , arbitration , legislature , payment , business , competition (biology) , affect (linguistics) , industrial organization , business enterprise , labour economics , economics , finance , law , political science , business administration , ecology , linguistics , philosophy , biology
Industrial relations procedures in both Australia and New Zealand are changing from a system based on centralised arbitration towards enterprise level negotiation. This article considers how this change will affect overtime and other penalty rate payments. In particular, we show how, despite the existence of a legislative ‘safety net’, enterprise level negotiations can lead to the widespread removal of penalty rates, possibly to the detriment of both employees and employers. Such changes will, however, enhance competition and benefit consumers.