New Public Management and ‘Photocopy’ Bargaining in the Australian Public Service

The industrial relations policy of the Federal Coalition Government is to encourage industrial bargaining to occur at the enterprise or individual level, free from ‘outside’ influences. While it encourages devolved bargaining at the agency and individual level within the Public Service (Australian Public Service) this policy creates tensions with its role as a centralized policy maker, economic manager and employer of the APS workforce. It also conflicts with the APS' adoption of New Public Management. In practice, the government retains considerable centralised control over agency bargaining outcomes, which is a de facto method of pattern bargaining. By analysing the substantive outcomes from nine APS agency level certified agreements (hours of work, pay and leave entitlements), the article discusses whether this one size fits all' model is evidence of an appreciation that public sector industrial relations is separate and distinct from private sector industrial relations, or another example of duplicity in the federal coalition government's ideology driven approach to industrial relations.     

Introduction: Changing Public Sector Industrial Relations in the Australian State

During the last two decades, governments have restructured their public services. Public administration has been largely replaced by public management, reflecting a more market oriented approach. In line with this pattern of change, the Australia public services at both state and Commonwealth levels, since the early 1980s, have undergone significant change. The aim of this symposium is to explore the dimensions, detail and impact of these developments, tracing the implications of public service reorganisation and operations for public sector industrial relations. The contributions therefore focus on government policies, management and industrial relations and implications for collective organisation and action. Changes in five states and one territory are considered as well as those at the Commonwealth level.     

Industrial Relations and Public Sector Reform: The Victorian Case

Few anticipated the radical program of public sector reform introduced by the Kennett government. A commitment to downsizing, markets and privatisation has transformed employment relations in the Victorian public sector. Familiar institutions have disappeared, major employment areas have been restructured, and jurisdiction for much public sector industrial relations has been transferred to the Commonwealth. Despite some industrial unrest, and occasional successes, public sector unions have been unable to fend off this ideological assault on traditional patterns of public sector employment.     

Victoria: Rolling Back – or Reinventing – the Kennett Revolution?

The election of the Kennett government in 1992 heralded an era of unprecedented change in public sector employment and industrial relations in Victoria. The Employee Relations Act 1992 and the Public Sector Management Act 1992 redefined the public sector in Victoria and the relationship, both collective and individual, of public sector employees with government. In October 1999 the Kennett government unexpectedly lost office. But despite its pre-election rhetoric promising a return to more conventional arrangements, there is little indication that the Bracks government intends to significantly dismantle the Kennett legacy in public sector employment and industrial relations.     

Housing and the Welfare State in Norway

This article discusses housing and the welfare state in Norway in 1980 and 2005 by applying Esping‐Andersen's theories of welfare state regimes to this sector. How should Norwegian housing policy be understood in light of Esping‐Andersen's conceptual framework, and what is the impact of post‐industrial change? In 1980, Norwegian housing policy was mainly characterised by social‐democratic traits such as market regulation, substantial public expenditure and universal subsidies for both renters and a large owner‐occupied housing sector. The effects of post‐industrial changes, including deregulation of the credit and housing markets, marked a major turn in housing policy and the housing market in Norway. By 2005, Norwegian housing policy was mainly characterised by traits that are typical of a liberal welfare regime: market economics, low public expenditure and subsidies for small, targeted groups, while other segments of the Norwegian welfare state remain characterised by social‐democratic traits. Esping‐Andersen's claim that the effect of post‐industrial transformation was different in different welfare regimes is thus not supported by the case of the Norwegian housing sector.     

Intergovernmental Innovation and the Administrative State in Canada

Canadian federalism has experienced considerable pressure for change and innovation in recent years. There have been calls for more collaborative federalism and demands for public sector reforms consistent with the precepts of New Public Management. This article examines the hypothesis that these pressures might be expected to have resulted in some intergovernmental institutional innovation in the arena of federal–provincial–territorial relations. Using a conceptual distinction between federalism, intergovernmental relations, and intergovernmental management (IGM) as the basis of analyzing institutional innovation at six levels in the Canadian intergovernmental administrative state, the authors find a differentiated impact with more institutional innovation evident at the micro levels of IGM and innovation more constrained at the macro levels of the administrative state by the traditional institutional infrastructure of executive federalism.     

Public Sector Labor Relations Scholarship: Is There a “There,” There?

Public sector union membership is thriving compared to the private sector. Moreover, public employee unions play a significant role in policy making at every level of government. Yet research on public sector labor relations is sporadic and uneven, perhaps negligible. Why so? This article surveys the literature on public sector unionism and seeks to answer that question. Its conclusion points to a course of action for renewing interest in this seminal field among public administration, management, and policy scholars.     

The Bio-economy and the Competition State: Transcending the Dichotomy between Coordinated and Liberal Market Economies

This article examines the role of the state in the emerging bio-economy. The starting point is that state interventions, including supportive regulatory arrangements and the shaping of public attitudes, constitute core assets in the evolution of bio-industrial complexes. Public policy in the bio-economy, across advanced industrial countries, is well captured by the “competition state” concept. This type of state takes different forms, analogously with the historical variants of the Keynesian welfare state. The article compares patterns of governance of the biotechnology sector in Finland and Sweden, the USA and the UK, and Australia. It is concluded that the bio-industry sector does not fit with the “models of capitalism” paradigm which postulates coherence within, and systemic divergences between, national models of economic governance. The bio-economy displays trends toward convergence, in particular mounting public investments in health care and in research and development. On the other hand, countries differ in their approach to market regulation, industrial support, and ethical restrictions. These differences do not follow the dichotomy between “liberal” and “coordinated” models of capitalism.     

Of cattle,farmers, veterinarians and the World Bank: The political economy of veterinary services privatization in Cameroun

This article relates how the World Bank makes reform decisions in a particular economic sector and country. It highlights some of the key issues pertaining to the privatization of livestock veterinary services in sub-Saharan Africa, with a particular focus on Cameroun. Relating to the economics literature, it argues that veterinary services have both public and private good attributes. Therefore, any policy aimed at privatizing the entire spectrum of services without regard to their public good character is likely to result in significant market failures. With empirical evidence provided by Cameroun, the article also demonstrates that the ‘privatization project’ advocated most strongly by key international lending institutions does not enjoy much support among African policy makers. It also raises issues of implementation in policy environments fraught with bureaucratic indifference and resistance, as well as divisions within the lending community over policy directions.     

Testing the Discourse of Declining Policy Capacity: Rail Policy and the Department of Transport

It has been observed that countries that implemented new public management (NPM) reforms are currently witnessing growing complaints about a decline in the policy capacity of their public services. Australia is a part of this trend with public sector leaders increasingly voicing concern about policy capacity decline within the Australian Public Service (APS). This article sets out to examine whether there is an empirical basis for this discourse and to assess allegations that NPM reforms have contributed to any related shifts. It draws on rail policy and the Department of Transport as its case study. It finds that the reforms transformed role of the department in a way that enhanced strategic policy capacity. However, the reforms also introduced a number of structural impediments that make it difficult for the new role to be effectively executed .     

Public employees and public sector reform implementation

Conventional wisdom says that reforms that aim at improving the productivity of the public sector face opposition from public sector employees, and for this reason, tend to be poorly implemented. These claims are not backed by much hard evidence. This paper seeks to fill some of that gap by investigating why an educational reform containing explicit accountability elements is poorly implemented across Norwegian municipalities about four years after the reform has passed the parliament. The empirical analyses provide evidence that municipalities with a large share of public employees are less likely to implement the reform. The relationship seems to be causal. A reduced-form approach is applied, which prevents conclusions about the mechanisms through which the public employees exercise their influence. However, some preliminary analyses indicate that school leaders hold more negative attitudes towards the reform in municipalities with a large share of public employees, potentially indicating that regulatory capture is an issue: school leaders tend to sympathize more strongly with teachers in such environments.     

Transparency of Risk and Reward in U.K. Public–Private Partnerships

Public–Private Partnerships (PPPs) are an increasingly common mechanism for the renewal of public sector infrastructure, although in the United Kingdom, these have been criticized as representing poor value for money. An inherent assumption of much of this criticism is that a corollary of detriment for the public sector is benefit for the private sector. This paper highlights the difficulty of objectively verifying the many criticisms and assumptions regarding risk and reward associated with PPPs. Public and private sector disclosure policies and systems are analyzed and we conclude that neither sector practices openness and transparency. This results in a democratic accountability deficit in the public sector and a lack of meaningful data being made available to stakeholders in private companies.     

The Evolution of Public Service Provision by the Third Sector in France

Public services have been externalised, in part, to the non‐profit sector in France and in the United Kingdom. This article begins by reviewing relations between the public and non‐profit sector in France before 2008, and its evolution since. This has been characterised by the slow reduction of public funding, the adaptation of non‐profit associations and organisations, and their clearer positioning within a wider ‘social and solidarity economy’, which was consolidated by a framework Law in 2014. The article then examines the current sharing of responsibilities between the public and non‐profit sectors in education, health and social services, pointing to the diverse historical and political conditions which have led to this shared organisation.     

When industrial policy shapes public sector reform: Total quality management in Britain and France

Approaches seeking to explain the development of TQM ideas in government are very much ‘business‐centric’. The goal of this article is to show that in reforming the public sector, policy‐makers did not simply follow the lead of the private sector because ‐ in the case of TQM ‐ the private sector was itself, to some extent at least, led by government. In the mid‐1980s, Britain and France launched nationwide ‘quality initiatives’ which provided money for businesses to buy management consulting expertise. Through the implementation of these policies, consultants built channels of communication with the state, and this subsequently opened possibilities for consultants to help transfer TQM ideas from the industrial policy area to the field of public sector reform.     

A Paradigm Shift? Employee Relations in the Victorian Public Service Since 1992

When Jeff Kennett was swept into office on 3 October 1992, one of his first priorities was to reform the Victorian public sector as one part of his broad strategy to get 'Victoria on the Move'. Without losing much time, and with very little community or parliamentary debate, both the Public Sector Management Act 1992 (Vic) and the Employee Relations Act 1992 (Vic) were passed. These pieces of legislation have been the main instruments to regulate terms and conditions of employment for employees in the Victorian public service. Changes to the legislation will be examined in this paper and discussed in the context of whether a paradigm shift has occurred in managing employee relations in the Victorian public service.     

Hong Kong: Administrative Reform and Recent Public Sector Changes — The Institutionalisation of New Values

Public sector management in Hong Kong is facing major challenges as the territory has undergone substantial changes in the past four decades. A small government, following a policy of nonintervention in a colonial setting, has resulted in a highly structured system whereby it is more convenient to plan and coordinate administrative activities. This centralised structure and the prevailing role culture have combined to facilitate the implementation and institutionalisation of changes in the public service. Considering the experience and activities of selected government departments, it appears that there is a move toward more accountability and a consumer-oriented approach to public sector management in Hong Kong. The new initiatives appear to be consistent with the needs and mood of the society and seem likely to persist in the future, despite an element of uncertainty stemming from the reversal of sovereignty to the People's Republic of China.     

PERFORMANCE PAY AS A COORDINATING MECHANISM IN THE AUSTRALIAN PUBLIC SERVICE

Abstract: Public sector management is in a state of flux. Pressures for greater efficiency and a stronger customer service orientation have led to changes to the structures and planning and reward systems of public sector organisations. In the milieu of reform, performance pay for managers has been given prominence in a recent critical report by the Senate Standing Committee on Finance and Public Administration which recommends a return to a more standardised approach to management salaries in the APS. I argue instead that performance pay should be considered as a third-or fourth-order coordinating mechanism and linked to the strategies of individual departments in the APS. A policy for greater decentralisation of the design, implementation and management of performance pay schemes in APS organisations is presented.     

IMPLEMENTING POLICY-A BUREAUCRATIC POWER PERSPECTIVE

Abstract: This paper argues that theories of organisational power which are based on the concepts of dependence and uncertainty may constitute a useful approach for explaining the manner in which government policies come to be implemented. In the intra-organisational context, studies by Crozier and Hickson demonstrate that subgroups which can control sources of uncertainty and create dependencies rise to positions of relative power within the organisation and may use this position to bargain for increased organisational rewards. Subgroups within public sector organisations that achieve power in these terms may, as their organisational reward, seek to impose particular values on policy programs carried out by the organisation as a whole. Activities in the inter-organisational context may be viewed from a similar perspective. The work of J. D. Thompson indicates that organisations can possess positions of power relative to other organisations in their task environment. In the public sector such power may be used to influence the policy programs of dependent departments. The paper then suggests that in the public sector intra- and inter-organisational theories of power may be combined to explain how subgroups can evolve into organisations in their own right and, in so doing, succeed in considerably changing the stated direction of government policy. To show how such a situation can occur, a case study of the evolution of Queensland's institutes of technology is included. The paper concludes that theories of organisational power can be of value to policy implementation theorists but require some modification to accommodate the particular characteristics of the public sector environment.     

State Reform in Turkey: Reasons, Needs and Strategies

The state structure in Turkey including all its branches of government (executive, legislative and judicial) at both the national and local levels has been shown to be ineffective, even irrelevant, to the ingrained demographic, social, economic and political exigencies of the country. One of the main reasons behind this is the collapse of public finance. Conventional rhetoric limiting solutions to administrative reform fails to provide a sufficiently broad enough context within which public sector reform in Turkey can be discussed. Turkey's determination to become a full member of the EU also necessitates a comprehensive and radical overhaul of the Turkish public sector with respect to efficiency and productivity. Five main strategies are proposed to assist Turkey in overcoming its state governance predicament: initiating and carrying out a state-wide reform by employing modern principles of public management; understanding and solving the problem of internal and external debts; enhancing the conditions of governance; reintroduc-ing and strengthening the principle of meritocracy in public sector and cooperating more with the EU.