The Guardian October 6, 2004


Liberal IR promise:
an even bigger whip hand for the bosses

Bob Briton

The Libs would have won a lot of bosses' hearts last week. First 
there was the announcement that a re-elected Coalition would see 
to it that workers forced into being contractors for jobs would 
be excluded from the provisions of the Workplace Relations Act 
(WRA) and protection under state industrial relations (IR) 
systems (see The Guardian of last week). 
Then came another election policy with the cynical title 
Flexibility and Productivity in the Workplace: the Key to 
Jobs.

Among the goodies on offer to the bosses from Workplace Relations 
Minister Kevin Andrews are:

* $12 million-worth of help to small business on how to stitch 
their workers up in non-union Australian Workplace Agreements 
(AWAs — individual work contracts)

* The option for employers to extend the term of AWAs from three 
years to five years

* "Harmonising" of federal and state industrial relations law to 
ensure lower federal standards apply

* Denial of union right of entry to workplaces

* Tightening of the Trade Practices Act noose on "secondary 
boycotts" or sympathy strikes

* A renewed pledge to exempt small business from unfair dismissal 
laws and lifting their obligation to make redundancy payments 
(the Libs happily point out that small business now employs 
almost half of Australia's private sector workers)

Employer outfits like the Business Council of Australia and the 
Australian Chamber of Commerce and Industry have criticised 
Howard for not announcing a single, national industrial relations 
scheme and for not further reducing the number of "allowable 
matters" in awards from 20 to just six (!).

However, on this occasion Howard is advising his backers to have 
a bit of patience. "You defend the industrial relations gains you 
have made and you push the boundaries out as far as possible", he 
told the media last week. There can be no doubt that a Coalition 
government would press ahead to give the bosses all the items on 
their wish list as soon as possible.

Andrews is saying that the Commonwealth does not even have the 
constitutional powers to collapse the states' industrial 
relations systems into a single federal one. This is not strictly 
true. The Howard Government has already looked at the 
Commonwealth's corporations power to try to undermine the states' 
IR systems in its previous attempts to exempt small business from 
unfair dismissal laws.

Howard knows that if he were to leave the IR matters of only 
small, unincorporated businesses to the states to deal with, they 
would probably wind up their bureaucracies and hand the 
responsibilities over to the federal body. If re-elected, this 
could well be the device a Coalition government uses to take what 
the bosses, the right-wing think tanks and (until very recently) 
Howard himself have described as the next major hurdle towards 
industrial relations "reform".

"Simplifying" the system

In the meantime, the Libs have set themselves the task of 
"harmonising" and "simplifying" the IR system. "Simplifying" was 
also the term used to describe the stripping of awards back to 
"20 allowable matters".

A number of recent defeats on the question of unions' right of 
entry to workplaces has no doubt spurred them into action. In 
September the AIRC upheld the right of organisers from the 
Finance Sector Union to enter the ANZ bank to interview labour 
hire workers about underpaid wages.

In July the Federal Court found that building firm BRG did not 
have the right to exclude representatives of the CFMEU from its 
Pilbara site even though all of its workers were hired under 
AWAs. Justice Robert French rejected the argument of the Federal 
Government that federal legislation on right of entry overrode 
state law. The continued capacity of unions to organise workers 
clearly outrages the Libs.

The potential for unions to upset the AWA applecart must sting, 
too. Howard is putting a lot of effort into promoting the 
"benefits" of the non-union workplace. Much of the Libs election 
campaigning is centred on how real wages have risen and the 
number of industrial disputes has slumped. However, workers know 
the real story behind these boasts. The low level of industrial 
disputes is the consequence of the Federal Government's anti-
union legislation and the results of this restriction on workers' 
right to struggle are plain for all to see.

Last week ACTU President Sharan Burrow gave the PM a reality 
check with the following stats: 2.2 million Australians work 
casually, one in two new full-time jobs created since 1996 being 
casual; around half of all employees (4.1 million workers) earn 
less than $650 a week; 64.8 per cent of jobs created between 2000 
and 2003 pay less than $600 a week; part time jobs grew by 32.5 
per cent in the same period (more than 600,000 part timers want 
more work); and unpaid overtime has increased 24 per cent since 
1996 (almost a million Australians now work unpaid overtime).

While it is true that industrial action to protect workers' 
interests has fallen to the lowest levels on record (in part due 
to unions avoiding penal provisions of the WRA), despite the fact 
that the bosses have gone all out to take advantage of the 
current IR climate to lay the boot in.

A study by Dr Chris Briggs from Sydney University has found that 
between 1999 and 2003, 57.5 percent of the industrial action 
lasting longer than 20 days was initiated by the bosses. Of these 
employer lockouts, 25 percent were aimed at getting workers to 
agree to pay cuts and another 15 percent were to get workers to 
sign individual contracts. Most of the lockouts were in 
manufacturing.

Kristen van Barneveld of the University of Newcastle has tipped a 
bucket of cold water on claims that workers' wages are going 
through the roof under Howard. Kristen found that AWAs were less 
likely to contain provisions for wage rises during the life of 
the agreement and, where rises were possible, were more likely to 
be productivity-based than in enterprise agreements. Wage levels 
are more likely to fall below the award over the life of an AWA -
- hence the bosses' excitement about extending their term from 
three to five years.

AWAs one-sided

On the question of "individual" treatment under an AWA, the 
researcher concluded "most of the benefits which had been 
achieved through the introduction of AWAs were one-sided, with 
employers achieving wages and hours of flexibility at the expense 
of employee entitlements."

"Protecting, securing, building" is the Libs' bold election 
slogan. However, the fine print reads differently for workers — 
it is not their interests that are going to be secured and built 
upon.

While a lot of the detail on how the Coalition intends to tighten 
up the TPA and let small business out of their obligations to 
workers has not been revealed, it is clear that Howard intends to 
keep going down the same industrial relations path that has led 
to the disastrous consequences described by the ACTU President. A 
lot hangs on the vote of October 9.

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