The limits of supply-side social democracy: Australian labor, 1983-96

Using an institutionalist supply-side framework, the article describes and assesses the industrial relations reform agenda of the Australian labor mov ement between 1983 and 1996. Five institutional conditions for diversified quality production are identified each of which was tackled to some extent in Australia. The article finds the strategy did not yield the benefits pro mised. Economic performance was average union density fell steeply and inst itutional supports for union membership and bargaining are threatened. Unio n misjudgments and an unfavorable historical and institutional legacy, in p articular the weakness of workplace bargaining structures, explain much of the Australian situation. Furthermore, the union supply-side reform agenda needs to be placed in its proper context. Without complementary policies af fecting aggregate demand innovation and industry policies, and finance refo rm, supply-side intervention can have only a limited impact. Unions in a ne oliberal political economy are nor strong enough to force through industria l restructuring alone.