Industrial relations pendulum to swing again?

The Australian industrial relations landscape has been shifting since Federation, but in the 20 years since the Industrial Relations Reform Act (1993) the change has been constant. Late last year the annual Ron McCallum debate asked whether it was time for the IR pendulum to swing again.

Representing the employers’ view, the Australian Industry Group’s National Workplace Relations Director Stephen Smith said history had shown that wide swings in the workplace relations system were “not a good idea”. He believed the pendulum had swung “quite widely” over the past seven years, with the Howard Government over-reaching with the WorkChoices legislation and the Rudd/Gillard Government over-correcting with the Fair Work Act.

“What is needed now is to return the IR pendulum to the sensible centre,” Mr Smith said. He then recommended a series of changes to boost productivity and flexibility and to ensure fairness for employers was an equal priority.

The union movement had “never attacked increased productivity” but had promoted it, said Australian Council of Trade Unions (ACTU) Secretary David Oliver. However some ways of increasing productivity were more effective and sustainable than others. For instance radical moves to individual contracts were not going to increase productivity and nor were the types of flexibility clauses that were “all about increasing profits at the expense of workers”.

The current system operating under the Fair Work Act was encouraging employers to sit down and negotiate with employees and their unions, Mr Oliver said.
He added that collaboration in the workplace reduced stress and had a range of other benefits.

“Relationships between employers and employees are inherently uneven, but what can help the balance is employment laws and trade unions,” he said.

Shadow Employment Minister Brendan O’Connor said there was no support for changes such as a push to individual contracts or renewing the Building and Construction Commission and rejected the need for a Registered Organisations Commission (ROC).

The Minister said productivity “did not rise during the last iteration of the ABCC nor did industrial disputes for that matter” but fatalities did. He added that the Bill extended powers “more towards a police state” such as might be seen “in times of war”.

He said the conversation should not be about whether a pendulum should swing but, as a nation, we should be asking whether the system will improve safety and job satisfaction and whether it “affords the benefits of a strong economy to as many people as possible”.

“Whatever you do, you should be trying to bring people with you.”

Professor Ron McCallum said civilised debate and discussion was the “best way of coming up with solutions”. He added that any Productivity Commission inquiry into workplace relations should be broad, balanced and inclusive. It should “go beyond labour economists,” he said.

The Ron McCallum debate is held annually by the Australian Institute of Employment Rights. Details: www.aierights.com.au