Compulsory arbitration. In labor disputes, some law

Law

Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...

s of some communities force the two sides labor and management

Management

Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...

, to undergo arbitration

Arbitration

Arbitration, a form of alternative dispute resolution , is a legal technique for the resolution of disputes outside the courts, where the parties to a dispute refer it to one or more persons , by whose decision they agree to be bound...

. These laws mostly apply when the possibility of a strike

Strike action

Strike action, also called labour strike, on strike, greve , or simply strike, is a work stoppage caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes became important during the industrial revolution, when mass labour became...

 seriously affects the public interest

Public interest

The public interest refers to the "common well-being" or "general welfare." The public interest is central to policy debates, politics, democracy and the nature of government itself...

. Some labor contract

Contract

A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...

s make specific provisions for compulsory arbitration should the two sides fail to reach agreement through the regular system of collective bargaining

Collective bargaining

Collective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements that regulate working conditions...

.

Compulsory arbitration in Australia

Since 1906 the Commonwealth of Australia has enforced a system of compulsory arbitration between employers and employees. This statutory system of arbitration, the Industrial Relations Court or Commission, and the Harvester

Harvester Judgment

The Harvester Judgment was a benchmark legal case for ensuring workers in Australia were paid a fair basic wage. The case had national ramifications and was of international significance....

 court case underpin the Australian industrial relations system. This system has been weakened since 1983, and the former Liberal Party

Liberal Party of Australia

The Liberal Party of Australia is an Australian political party.Founded a year after the 1943 federal election to replace the United Australia Party, the centre-right Liberal Party typically competes with the centre-left Australian Labor Party for political office...

 government, led by John Howard

John Howard

John Winston Howard AC, SSI, was the 25th Prime Minister of Australia, from 11 March 1996 to 3 December 2007. He was the second-longest serving Australian Prime Minister after Sir Robert Menzies....

 sought to further weaken or abolish it through WorkChoices

WorkChoices

The Workplace Relations Act 1996, as amended by the Workplace Relations Amendment Act 2005, popularly known as Work Choices, was a Legislative Act of the Australian Parliament that came into effect in March 2006 which involved many controversial amendments to the Workplace Relations Act 1996, the...

.

The current Labor government, led by Julia Gillard

Julia Gillard

Julia Eileen Gillard is the 27th and current Prime Minister of Australia, in office since June 2010.Gillard was born in Barry, Vale of Glamorgan, Wales and migrated with her family to Adelaide, Australia in 1966, attending Mitcham Demonstration School and Unley High School. In 1982 Gillard moved...

, and previously Kevin Rudd

Kevin Rudd

Kevin Michael Rudd is an Australian politician who was the 26th Prime Minister of Australia from 2007 to 2010. He has been Minister for Foreign Affairs since 2010...

, has not sought to re-establish compulsory arbitration, instead seeking to streamline and modernize Australia's industrial relations regime through other means.