Crafting industrial relations policy that is both fair and economically successful is a difficult and complex juggling act. How best to balance the interests of industry, employers, employees, unions and government?
by Francis Wilkins
Crafting industrial relations policy that is both fair and economically successful is a difficult and complex juggling act. How best to balance the interests of industry, employers, employees, unions and government?
However, the Prime Minister’s proposed industrial relations reforms are an unashamedly one-sided package that erases any pretence to such a balance.
The reforms would, among other things, relax existing legal procedures for the negotiation of employer-employee workplace agreements. This at first sounds innocuous enough. But for employees also to benefit from that flexibility requires them to have negotiating power to match that which their employers will bring to the table. With union membership at an all time low, and with key components of the reforms designed to rein in union power, a crucial part of the employee negotiating arsenal has been all but silenced.
The proposal to exempt businesses with under 100 employees from unfair dismissal laws, and to double the probation period within which an employee may be dismissed in the case of larger businesses will, it has been argued, reduce unemployment. One employer group expects 77,000 new jobs.
That might be fine and dandy in a growing economy – and Mr Howard is fortunate to be unveiling these reforms in a very favourable economic environment. But what about when things slow down or even go pear-shaped? Small and medium-sized businesses will then likely thank their lucky stars for the unfair dismissal reforms while many of the Coalition’s loyalist supporters take it on the chin.
With six state regulatory structures in addition to a federal one, the case for simplification is an extremely strong one, and maybe an overarching federal structure is the answer. Maybe, also, it would be a mistake to prepare for battle before the finer details of the reforms have been negotiated. Mr Howard, however, has on his side control of the Senate, constitutional Commonwealth power on corporations, and the current economy. That being the case, the States and unions should probably look to a High Court challenge sooner rather than later.
