Addressing the productivity challenge? Government-sponsored partnership programs in Australia and New Zealand

Abstract

In this article we investigate the role of soft regulation in the implementation of government industrial relations policy. Specifically, we examine two government programs to foster workplace reform through partnership; the Best Practice Program in Australia from 1991 to 1996, and government interventions from 1999 culminating in the creation of the Partnership Resource Centre (PRC) in 2005 in New Zealand. We conclude that both Programs have been successful in generating change in directly participating organisations. Despite identifying several factors which are likely to help embed a partnership approach, the evidence in our cases suggest that changes are difficult to sustain, or to diffuse to other workplaces. We conclude that in Australia and New Zealand soft regulation may have become the only acceptable model for government to promote workplace partnership.

Keywords:

• comparative industrial relations
• government program
• high performance work systems
• partnership
• soft regulation
• state

Acknowledgements

This article builds on two working papers presented in a session on Governments and Good Work at the First Asia-Pacific Workshop on Team-working. This workshop was jointly convened by the Centre for Institutional and Organisational Studies at The University of Newcastle and the Department of Management at Monash University.

Notes

1. The partnership program remains in place in New Zealand, despite a change to conservative government in 2008. In Australia, the Labor government (re-elected in 2007) has reintroduced the language of partnership in industry and industrial relations policy.

2. In New Zealand, it is the Labour Party and in Australia the Labor Party.

3. Initially called the Australian Best Practice Demonstration Program; in 1993 ‘Demonstration’ was dropped and it became the Best Practice Program.

4. Julia Gillard, who became Prime Minister in June 2010.

5. One manufacturer withdrew from the Program in early 1994 and returned the balance of funding. It was not included in the evaluation activities; hence the total number of projects drops to 42.

6. See http://www.psa.org.nz/Campaigns/Partnership_for_Quality.aspx.