The assessment of wages and conditions at workplace level will result in greater variation in wages and conditions and an alleged loss of horizontal equity.
At its core the Industrial Relations Reform is designed to give an overall simpler system for determining wages and conditions of employees with an inclination towards decentralised wage determination. A more flexible labour market will allow stronger economic growth that will eventually flow to higher wages and lower unemployment. This reform will most certainly have positive and negative effects for all groups and communities, however on the whole the Howard Government believes it will create "More jobs; higher wages; [and] a stronger economy". While the Unions disagree saying "The Howard Government has said it will use its new Senate powers to take away many of your basic rights at work." The full advantages and disadvantages of this reform however, will only be known eighteen months after the legislation is introduced and the labour market is able to understand the full potential of the reform.
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