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Industrial relations an election liability for all concerned
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Industrial relations an election liability for all concerned
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Paul Gollan
May 5, 2007
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AS GREG Combet announces one of the worst-kept secrets in politics in running for the safe Labor seat of Charlton, Workplace Relations Minister Joe Hockey has bowed to public criticism over WorkChoices, that the industrial relations pendulum has gone too far in serving business interests at the expense of "fairness".
No matter what the spin, basically it's a recognition by the Howard Government that WorkChoices was on the nose for many voters and could prove a liability at the federal election at the end of the year. It may also be recognition that these changes could be an election winner for the Government after the fallout and mismanagement of Labor IR policy announced at the weekend.
In essence, from midnight next Monday workers earning under $75,000 on Australian Workplace Agreements (AWAs) will not be allowed to trade penalty rates and overtime allowances without being adequately compensated. The renamed Workplace Authority (formerly Office of the Employment Advocate) will use a "fairness test" to ensure no one is disadvantage. The Office of Workplace Services will also be renamed to Workplace Ombudsman to refocus its attention to enforcement.
Compensation may be made in a variety of ways, including higher basic pay, more flexible hours, and even car parking.
The Prime Minister's announcement is in response to Labor's free fall over its IR policy. Labor has not been helped by Julia Gillard suggesting to the business community that it back off or it would suffer if it started a media campaign against ALP IR policy. Gillard gave the impression that Labor attitudes towards IR and in particular business have not changed since the 1960s. Little doubt special ALP business adviser Rod Eddington would not have been too impressed by the policy.
A potential compromise between Gillard and the Australian Mines and Metals Association might emerge over AWAs, if statutory individual contracts are maintained under a pre-WorkChoices disadvantage test. This would ensure that workers on AWAs would not be worse off than under the equivalent award.
Gillard has indicated she is willing to discuss the idea. While this presents a little movement from the ALP, we will have to see if the "us" and "them" mentality is alive and well, or a real balance between fairness and flexibility will be achieved.
For the Howard Government, yesterday's announcement might be considered a smart political strategy to regain the IR initiative, but it will take more than a cosmetic job to convince the electorate.
The ALP and the Coalition have seen IR reform as an election winner, but for both it has become an election liability.
The ALP and the Howard Government do not need to finetune their policies, they just need to make sure they are in tune with Australian voters.
Paul Gollan is an associate professor, department of business, Macquarie University, and an associate fellow in the employment relations and organisational behaviour group at the London School of Economics.
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