Australian labour market is very regulated, with many organizations and laws impacting on the labour market. Most employers and employees were covered by awards set through a system of conciliation and arbitration operating through industrial tribunals. Australia has had a centralised system of dispute resolution. Industrial disputes between unions and employers were settled with conciliation and arbitration from an outside actor. Appeals could then be made to the Industrial Relations commission (an industrial tribunal) where a panel of arbitrators hear the case and give their verdict. National Wage Cases automatically proceed to the IRC. Government set Penalty clauses are available if any disobeying occurs.

This centralised system prior to the 1980's was criticised for being rigid, awards were set, which did not sufficiently take into account the particular need of a workplace, which reduced flexibility and by extension company productivity.

Also the failure to bring peace was criticised...