Catherwood LibraryILR School

Over the last 26 years, Australia has been enjoying a period of economic growth. The country’s workers, however, have been grappling with lagging wages and growing job insecurity. Many policymakers cite disruptive technology, a lack of productivity growth, and a growing number of part-time workers as a few reasons. Some labor experts, however, like employment attorney Josh Bornstein, say a plunge in union membership is the main cause of Australia’s labor woes. Unlike Europe and the U.S., Australia was on the upswing during the devastating 08/09 crisis. An influx of commodity demands from China helped Australian workers fair much better than their counterparts in Europe and the U.S. a decade ago, but today the country’s manufacturing is declining, and union membership is at an all-time low. The decline of labor unions in Australia happened much more quickly than in the rest of the developed world. Today, less than fifteen percent of Australia’s workforce is unionized, compared to 40% in 1991. Meanwhile, in Britain, the rate has only dropped from thirty-seven to twenty-three percent in the same time period. While corporations are benefiting from stagnant wages, Australian families find it increasingly difficult to find economic stability.