The Nordic countries’ co-operative approach is not a naive one. Workers and employers have extensive powers to initiate strikes and lockouts. But rather than conflict being portrayed as negative, it is seen as a mechanism for identifying and resolving problems before they fester.
Minimal government intervention, strong representation and mutual respect are hallmarks of the Nordic models. These are widely credited for achieving a high road to shared prosperity. What lessons can Australia learn from them?
Good working relationships based on trust and communication are necessary for high quality of working life. For this to be achieved, workers and employers need to be empowered so they can engage on equal terms. This requires the removal of the legal barriers to collective representation that currently exist in Australia.
The Nordic examples indicate that Australian employers, workers, and their representatives need to recognise the value of not always looking to government, but instead working together to solve their problems. These countries’ successes suggest Australian governments should play a facilitative rather than directive role by encouraging employers and workers to come up with their own joint solutions. This requires the workplace parties to be pragmatic rather than ideological and more willing to compromise to reach agreements that can produce mutually beneficial outcomes.
Australia’s employment, skills and social policies also need to be better co-ordinated to help employers respond to changes in the business environment and support workers’ career transitions and their lives outside of work.
Australia is a great country to live in – but the Nordic countries highlight how we can further improve the quality of people’s working lives.