Observation (CEACR) - adopted 1990, published 77th ILC session (1990)

Employment Policy Convention, 1964 (No. 122) - Australia (Ratification: 1969)

1. The Committee has noted the Government's helpful and detailed report for the period ending June 1988, containing replies to the previous observation. It notes in particular the enactment of the Employment, Education and Training Act (No. 80 of 1988) which aims at providing a co-ordinated framework of advisory structures in employment, education and training. The report, recognising that labour market outcomes are the result of a broad range of macroeconomic and microeconomic policies, describes the Government's policies in various fields as they relate to employment: such as fiscal and monetary policies; investment policies including tax reforms; industry and trade policies including reducing significantly assistance to industry; and prices, incomes and wages policies including the introduction of a two-tiered wage system by the National Wage Case decision of 10 March 1987, with a view to replacing the system of wage indexation which had operated since 1983. As to the labour market policies, the Government indicates the shift in emphasis in favour of education and training, moving away from job-creation activity lacking a formal training element, as well as the high priority given to assisting the long-term unemployed and other particularly disadvantaged persons.

2. The Committee notes with interest a variety of schemes and programmes for job creation and employment assistance and for education and training referred to in the report, some of which have recently been undergoing revision and reorganisation (for example, the abolition in 1987, in line with the above-mentioned shift in emphasis in government policy, of a short-term job creation scheme, the Community Employment Programme; the integration of some community-based assistance programmes into a new one called "Skillshare" targeted specifically at long-term unemployed and other disadvantaged groups).

3. The Committee notes the Government's indication that strong employment growth in 1987-88 (with full-time employment rising by 2.4 per cent and part-time employment by 5.8 per cent) more than offset the increase in the labour force, and the unemployment rate declined from 8.4 per cent in January 1987 to 7.3 per cent in June 1988; a fall in long-term unemployment is also pointed out. It hopes that the Government will continue to supply information on the development and results of the policies to achieve the aims of the Convention, with particular reference to the effects of labour market programmes, especially training programmes, upon subsequent employment of persons involved. The Committee would also be grateful if the Government would provide an evaluation of the impact on the labour market of changes in industry and trade policy and in the wage-fixing system.

4. Concerning the machinery for consultation with the persons affected (Article 3 of the Convention), the Committee notes that the Australian Council for Employment and Training has been replaced by the National Board for Employment, Education and Training, established under the above-mentioned Act, consisting of members appointed by virtue of individual skills and expertise (however, two of them are required to have expertise relating to trade unions and two relating to business or industry). The Committee looks forward to receiving further information on advisory activities of this Board and other advisory councils and committees under the said Act as well as on relevant policies and programmes consequently developed. Finally, it would also be grateful if the Government would supply information on the consideration given to the recommendations, relevant to the matters covered by the Convention, made by the National Labour Consultative Council in its 1987 report on "Labour Market Flexibility in the Australian Setting".