Economic Analysis of Fair Work Act in Australia - Statistics Project Example

The entire world fraternity has developed laws governing labour and has continously evolved the labor market by developing better reforms. This has brought the required changes and has provided more power to employees which has strengthened their bargaining power and has ensured that the employees are not exploited. The Fair Work Australia is one such reform in that direction which improves the overall condition of the employees and determines the manner in which laws are governing the Australian economy. This paper evaluates the manner in which Fair Work Australia raises different economic issues which will help towards the economic development of the economy. In addition to it comparison is made between the Australian and Indian economy with regard to the labor policies so that the economy which has been able to develop better policies and use it has ensured better development of the economy. This will thereby help to understand the different approach which economies have taken and the manner in which it will contribute towards the growth of the economy. The Australian economy has witnessed widespread changes with regard to the employment laws prevalent in the country. Previously, the Australian government developed labor policies by relying on the Corporation Power which falls under the Australian Constitution and has been replaced by the Fair Work System. The Fair Work System has been slowly replaced by Fair Work Australia which has filled the gaps which existed in the previous reforms and developed better rules through which employees would be able to contribute positively towards the growth of the economy and reduce the chances of exploitation of the employees (Fair Work, 2013). The Fair Work Australia ensures that employers are educated, developments are monitored and interventions are possible from government bodies if the interest of the employees is exploited. This will help to improve the development of the economy as the economic impact will be positive and will help to improve the chances of achieving higher growth rate. Development of Fair Work Australia has ensured that the competitiveness which Australia had lost after the recession of 2010 was gained (Fair Work, 2013). Fair Work Australia has helped in finding out development policies as the legistation aims at removing the entreprise agreement clause and restricts engagement of contractors and on hire basis. This thereby ensures that employees whether they are hired on a full or part time basis as contractual labors have to be paid the same compensation as those paid to the other employees. This has redduced the differences between the employees and the construction industry has been benefitted from it. This has transformed the entire business and improved the living status of people as shown below (Fair Work, 2013) The above chart highlights that the development of legislative laws with regard to employees has improved the real GDP. This has resulted in an increase in disposable income as more and more people are being employed and has resulted in the unemployment rate to fall as show below (Fair Work, 2013) The above chart highlights that the development of proper laws has increased the level of employment and has created a ripple effect through which efficiency of the organization has improved. This has further impacted the number of hours which employees work and has reduced the exploitation of employees as shown below The above chart highlights that the number of hours that the employees work has reduced and matches the international level. This has determined the amount of hour that they need to work and based on it their wages are determined. Organizations have been able to benefit greatly from it as it has provided a code and direction which organization needs to follow. This has affected the decision making and has made organization to ensure that maximum productivity is gained from the employees. This has been reflected through the reduction in the working days which has been lost due different problems that arises due to different relation with the employees and is as below The above chart clearly highlights the manner in Fair Work Australia has been able to reduce the wastage in the labor working hours by having rules governing them. This has thereby multiplied the opportunities that the economy has and has ensured that the economy can achieve the bigger picture and goals (Fair Work, 20130. The development of policies which looks towards reducing the differences which exist between the employer and the employee has improved the overall performance and thereby increased the supply of money. Increase in the money supply will ensure that the spending power of people improves which will make people different products and services present in the economy. This will also make certain section of the society which to transform their puschasing habit as the money supply increases. If along with it the country witnesses’ inflation then the value of the current depreciates and things becomes expensive. This will translate into increased cost which will make it to ensure the same business and growth rate. In addition to it changes in the exchange rate has a bearing on the international tourist as Australia look towards attracting a lot of tourist. An increase in the value of the currency through an increase in the exchange rate will make the visitors and the tourist to look towards some other destination and also make them use different mode of communication (Fair Work, 2013). This will have an effect on the number of people visiting the country. The Fair Work Australia on this aspect has looked towards ensuring that the overall process helps the economy to develop different parameters to improve their performance. This requires active participation from the government so that inflation is controlled and the business is able to gain efficiency. This will require that the government looks towards controlling the money in the economy and looks towards achieving a balance so that a balance is achieved between demand and the amount of money supply. This will also require that government absorbs the extra money in the system through the issue of bonds. This will have a positive impact on Australia as it will ensure that the benefits from Fair Work Australia are gained. This will help to multiply the effectiveness and develop the entire process through which developments are taking place. This will ensure that the overall financial system gains efficiency and the development of different policies will ensure that the business in able to gain efficiency and the different products will be easily accepted by people all around the globe. This also allows comparison as the consumer can compare the products with the other players in the market and based on it develop the best possible strategy through which the business will be able to gain efficiency. The disadvantage of the system is that it will lead transforming the system where the local players face difficulties due to international player and will thereby have an impact on the overall system. The entire process thereby increases the working of the economy as it looks towards strengthening the Fair Work Australia and ensures maximum effectiveness is gained from the syste, The manner in which the Fair Work Australia has provided advantage can be understood fully when a comparison with the labor laws prevalent in other countries is developed. This thereby compares the labor policies of Australia and India to find out the manner in which economic development has been possible. This will help to understand the manner in which the policies have helped a certain economy more in comparison to another. The Australian economy as a result has been able to gain from the Fair Work Act as it has simplified the entire process of carrying out the operations. The value of the Fair Work Australia will be recognized when it is compared to the labor lawn prevalent in other countries. This will help to understand the manner in which the economy has been able to grow in comparison to others. For the report a comparison with the labor laws in India is made. This will help to understand the different approach that both Australian and Indian economy has adopted and the manner in which it has contributed towards the growth of the economy. The labor regulations work in India has undergone tremendous changes as different reforms have ensured that labor is provided with better understanding on the environment. The developments have strengthened the role of employees and have ensured that the employees have a larger role in the society. This requires that collaborative interactions are developed between the employer and the employee so that employees are entrusted with additional responsibilities and will provide the required flexibility through which no conflicts takes place (Teicher, Holland & Gough, 2002). This will ensure that employees are provided with the additional authority through which they are able to act in a positive manner and transform the entire process of working. The labor laws in India have strengthened the role of employees but at the same time haven’t been able to reduce the role of trade union in the economy which has resulted in continuous unrest and strikes. It is also true that with increased employee engagement conflicts are bound to increase between the employer and the employees as additional authority might lead towards a situation where employees start to misuse the additional powers (Armstrong, 2007). This will require that both the parties understand the importance of working together and the role they have to play towards the common goal which will help to resolve the differences which crops up. This will also help to ensure that a long lasting positive relationship is fostered which is aimed at developing the overall situation in such a manner those employees are able to carry out the additional roles and duties in the most beneficial manner. The reasons which has attributed towards the differences can be due to disorders in personality, poor communication, lack of proper recruitment and promotional strategy. This will require that the employees are made to understand their role within the organization and the manner they have to work to accomplish the task that has been entrusted on them (Provis, 2009). This will make the entire workforce come together and work as a single unit which will thereby ensure that the commitment level of the employees towards the organization increases. This will help the organization to be able to accomplish their goals through the best use of resources and look towards sustaining tougher competition. The manner in which business legislation is increasing and intensifying labor laws it is imperative that the organization focuses on developing positive relations. This will help the organization to stay away from the legal aspect and will help them to concentrate on the business in hand. This will also help to build a positive brand image of the company as the society and others associated with the company will be able to visualize the manner in which the organization looks towards the well being of the employees (Korczynski, Hudson and Edwards, 2006). This will thereby ensure that the organization has a pool of employees who will be able to carry out the different responsibilities and will be able to ensure that the goals of the business can be achieved in the most productive manner. A comparison between the Fair Work Australia and the labor lawn in India highlights that Australia is better placed as compared to Australia and is because of the fact that the reforms looked towards equal participation of both the employer and the employee. This aspect is missing from the Indian labor laws as the reforms didn’t focus on looking into the aspect of employer and employee relation. Further, the labor laws don’t look towards reducing the involvement of trade unions which has thereby resulted in increased strikes. This requires that the Indian labor laws undergo changes and looks towards having more involvement of the employer and the employees. At the present moment the Fair Work Australia looks into different aspects and ensures that the overall performance of the economy improves. This has also helped to improve the living condition of the employees and has increased the real wage rate of the employees. This aspect thereby ensures that Australia is able to perform better as the labor reforms have supported towards the growth and development of the economy. Thus, the paper evaluates the manner in which Fair Work Australia raises different economic issues which will help towards the economic development of the economy. In addition to it comparison is made between the Australian and Indian economy with regard to the labor policies so that the economy which has been able to develop better policies and use it has ensured better development of the economy. This will thereby help to understand the different approach which economies have taken and the manner in which it will contribute towards the growth of the economy. This has also highlighted the manner in which Australian economy has performed better than Indian economy as the development of rules regarding labor reform has transformed the labor industry. References Armstrong, M. 2007. Employee Reward Management and Practice (2nd Ed) London Kogan Page Fair Work, 2013. Review of Fair Work Act. Business Council of Australia, Australia Korczynski, M., Hudson, R. and Edwards, P. 2006. Social theory at work. Oxford: Oxford University Press Provis, C. 2009. Ethics and Industrial Relations' in C. Leggett and G. Treuren (eds.), Proceedings of 13th AIRAANZ Conference (Adelaide), 1 (7), pp. 193-206 Teicher, K., Holland, I. & Gough, P. 2002. The True Society: The Philosophy of Labour, Jonathan Cape, London Read More