How to achieve collective bargaining reform in liberal market economies? The institutional mobilisation of ideational power in Australia

There is limited analysis of how governing parties enact industrial relations policy change. This gap is particularly significant in liberal market economies where labour market inequality and employer-oriented regimes prevail, leaving open questions about how worker-protective reforms can be achieved. To address this gap, this article analyses the Australian government’s successful recent implementation of multi-employer bargaining reform. It utilises a systematic process analysis involving 14 interviews with elites involved in the policy process, and documentary analysis to examine how the Australian government gained the necessary support for its reforms. We identify four strategies whereby the governing Labor Party harnessed institutional power to mobilise ideational power: evidence-based persuasion, compromise, strategic use of policy legacies and framing ideas to address broader interests. Drawing upon political science concepts on institutional and ideational interaction, we contribute new insights to industrial relations scholarship on how governing parties utilise power resources to achieve policy change.