Workers and their unions in 1996

Three elements defined the union movement during the first three terms of the Howard Government (1996–2004). One was an ongoing employer and government offensive against the working class. The economy grew throughout this period. The rate of profit continued its recovery. Nonetheless, international competition continued to bear down on Australian business, and this compelled employers to cut costs wherever possible. The Federal Government for its part encouraged employers to confront the trade unions, which still retained significant power to frustrate managers in their core areas of strength. It passed a series of laws that made it increasingly difficult for unions to operate and used a combination of sticks and carrots to cajole and entice employers into using these laws.

The second feature of trade unionism in these years was a working class that was battered and bruised and had lost the networks of militants that could have organised a fight-back, but which was at the same time increasingly bitter towards government and employer attacks and the sacrifices that it was expected to make in the name of international competitiveness. Steady economic growth created jobs, unemployment fell, and real wages rose for most workers, but at the cost of work intensification and longer working hours. Job insecurity and household debt were persistent concerns. Housing was becoming increasingly unaffordable, at least partly because of a strong demand for rental stock by wealthy investors provided tax breaks by the government.