Abstract
On 1 January 2010 the complex system of state and commonwealth regulation of industrial relations in Australia was replaced with a single Commonwealth system. In all Australian states, except Western Australia, the Commonwealth Fair Work Act 2009 became the system to regulate industrial relations within all public and private sector firms. Features of the new system include: a set of 10 minimum National Employment Standards; modern awards applying to specific industries and occupations; a national minimum wage order (where it applies); enterprise bargaining; and protection from unfair dismissal. The greatest impact of this change would have been felt by small firms which were predominantly covered by state systems of industrial relations. Small firms have traditionally relied on the industrial award system to outline terms and conditions of employment and reforms of this type put pressure on them, like all other firms, to take greater responsibility for managing their employees appropriately. For many small firms with limited resources, change such as this could present problems. The purpose of this paper is to investigate and review the arguments for change and the effect of these changes on small firms. Materials available in the public domain ? media reports and stories, union, employer and small business association surveys, reports and comments and data collected by government bodies where available - form the evidence drawn upon in the paper. As such this is the first part of a larger project looking at the costs and benefits of regulating small firm industrial relations.