This paper maintains that the LPA IR policy has changes dramatically between 1983 and 1996. Such a change is attributed to the state of the Australian economy in the1980's, the ALP IR reform agenda, the influence of the New Right and the domination the liberal dries. It is also concluded that the current state of enterprise bargaining practiced in Australia is far from optimal. Suggestions are given to improve this situation. Suggestions for further research are also provided.