Manajemen | Fakultas Ekonomi Universitas Maritim Raja Ali Haji 2004 25

EDITORS’ INTRODUCTION
100 YEARS OF FEDERAL ARBITRATION
MICHAEL BARRY AND PETER BROSNAN∗

Arbitration has remained an important feature of Australian industrial relations
for more than a century. This year, 2004, marks the centenary of arbitration in
the federal system.
Although it was originally designed to overcome the types of industrial conflict that occurred during the 1890s, compulsory arbitration also developed into
a mechanism to determine wages and conditions of employment for various categories of male and female, and skilled and unskilled workers. Arbitration recognised and protected particular institutional actors, and legitimised or sanctioned
certain types of behaviours. Arbitration influenced the development of particular structures of employee and employer representation, and mediated the role
of direct state intervention through the development of wage fixation principals
applied through occupational and industry awards. Although weakened by the
development of an emerging (perhaps now dominant) bargaining framework, the
arbitration system and its industrial instruments either directly or indirectly continues to set or shape the wages and conditions of a substantial proportion of
Australian workers.
The papers in this collection contribute to our understanding of the development, current orientation and future direction of Australia’s federal arbitration
system. The paper by Dabscheck examines how the arbitration system has influenced relations between the parties. Arbitration recognised and heavily regulated
a particular model of employee representation, and arguably had an important
influence in the development of employer coordination. Changes to Australia’s
arbitration system have forced these parties to restructure themselves and develop
new initiatives to represent their members.

Whitehouse’s paper explains the development and evolution of the relationship
between arbitration and the family. In particular, Whitehouse examines how the
family wage model that emerged under compulsory arbitration shaped, and continues to shape, the development of policies around the introduction, payment
and administration of parental leave.
Burgess’s paper examines the impact of the arbitration system on the economy. After reviewing the evidence and comparing Australia’s economic performance with other countries, Burgess finds that the system did not adversely affect
Australia’s economic performance. One of his most interesting findings was that
the Court needed economic statistics, and that this need played a key role in the

∗ Griffith

University, Nathan, QLD 4111, Australia. Email: p.brosnan@griffith.edu.au

THE JOURNAL OF INDUSTRIAL RELATIONS, VOL. 46, NO. 4, DECEMBER 2004, 383--384

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INDUSTRIAL RELATIONS

December 2004

development of a national economy in Australia. He is drawn to the view that the
Commission has played a positive role in a number of areas.
The paper by Barry and Wailes compares the development of the antipodean
systems of compulsory arbitration. The paper explores the differences of interest
that underlay the introduction and early development of the federal (Australian)
and New Zealand models. The paper traces the importance of these differences
through key transitions including the growth of collective bargaining and subsequent abolition of arbitration in New Zealand, and the slow decline of arbitration
in Australia. The paper contends that recent developments in Australian industrial relations point to a reconvergence after the systems had diverged markedly
during the 1980s and early 1990s.
The final paper, by William Brown, takes an even broader view. It gives an
overview of international trends in third-party intervention, paying particular
attention to developments in Europe and especially in Britain. Brown argues that
we need to rethink not just the national, but also the global role of third-party
intervention. Brown argues that there is a future for third-party intervention,
while acknowledging the difficulties involved.
The first three papers in this edition stem from a symposium organised as part

of the Association of Industrial Relations Academics of Australia and New Zealand
(AIRAANZ) 2004 Conference held in February. Brown’s paper was presented at
the Centenary Conference of the Industrial Relations Society of Australia, held
in October. Papers have been subject to the Journal’s refereeing processes. We
would like to thank the referees for their valuable comments and suggestions.
Michael Barry and Peter Brosnan