Implications for Wages Policy in Australia of the Living Wage Case

Abstract This paper considers the implications of the decision of the Australian Industrial Relations Commission in the April 1997 wage case (the ‘Living Wage Case’) for wages policy. The recent history of wages policy in Australia is analysed in terms of competing goals for wages policy and the changing priorities for these goals. The Living Wage Case decision is a continuation of developments in the Australian labour market that worsen the relative income position of the low paid, tend to create a two-tier wage structure, and worsen the prospects for reductions in unemployment because responsibility for the control of wage based inflation has been given to restrictive monetary policy.