After the bloodletting of 1951, industrial relations remained settled for a relatively lengthy period. This was mostly due to the growing affluence of the 1950s and early 1960s, which set people into a more genial frame of mind. Industrial conflict, when it occurred, was low key and small scale.
The next major challenge to the credibility of the arbitration system came in 1968, when unions and employers effectively acted together to overturn a nil wage order handed down by the court. The court’s decision reflected its concern over the climate of recession, but the unions were most displeased. Instead of striking, they chose to approach employers directly through the Employers’ Federation. The two parties agreed between themselves to a 5% general wage increase. In these circumstances the court had little option but to ratify the increase, and did so a few weeks later.
Historians point to this event as the moment in our industrial relations history when the Arbitration Court lost all credibility. Unions and employers began to bargain directly with one another. Working days lost to strike action increased by nearly 400% between 1966 and 1976 as a result. In 1966, 99,095 days were lost to strike action. By 1976 this had increased to 488,441.
