Scrap Workchoices

Industrial Relations (IR) policy here in Australia is a thorny issue in the lead up to the soon-to-be-announced election – perhaps even the decisive one. While health care, education and infrastructure may be just as important, it is the work place where Australian’s are feeling the most immediate threat. In this context, the performance of IR Minister Joe Hockey and his opposition (and Deputy Labor Leader) Julia Gillard couldn’t be more crucial over the next month. They’ve been trading jabs for a year or so already, but for mine, Julia is gathering momentum – and clearly out boxed Hockey during last nights ABC debate.

The reason simply put, is that the Labor party seem to at least be heading in the right direction: establishing a fair balance between workers and employers – something of particular importance for our poorest workers. They realise the value of collectively bargained agreements, as well as the flexibility for people pulling down 6 figures or more, to sort themselves out. In contrast, the Government seems to have noticed that businesses (and the economy) grow faster when labour is cheaper – and are letting ‘the market’ decide how much 10 hours on a production line is worth (not much).

The value of a good IR policy was impressed upon me as I worked my way through Uni at a bottling plant in the western suburbs. The plant was a microcosm of the wider workforce: the 50 or so employees included a CEO, marketing department, sales force, scientists, engineers, forklift drivers, cleaners and production line workers. In the same car park, the CEO’s yellow Peugot convertible (he even had driving gloves and cap for winter) nestled next to my 1981 commodore with the cracked head. It was an amazing learning experience. The degree-qualified staff enjoyed fat salaries and air conditioned offices, while the battlers pulled 12-hour shifts in the stifling bottling plant. The years I spent there taught me two things about Unions: without them, low-skilled workers are helpless and at the mercy of fast-talking HR managers – but also that Unions can quickly over-reach and become obstructive.

It seems obvious to me then, that the Government’s role is only to fine tune that balance. Let Unions represent blocs of unskilled workers to guarantee minimum conditions, but allow employers to sack problematic workers and to be free of unnecessary strike action. Last night, on The 730 Report, Julia Gillard said as much – while Hockey sought only to demonise Union involvement and to point to our growing (resource fuelled) economy.

Philosophically, we are being presented with two options. Under Labor we will continue to protect our lowest paid workers, allowing them to bargain for better pay – coupled to increased productivity. In contrast, the Libs are sending the message that our international competitiveness and economy at large rely on reducing labour costs and that maintaining basics rights is an unnecessary expense. Viewed in this light, there seems to be no contest; happy workers are productive workers - and trying to compete with China’s low cost labour force by oppressing our own is a fool’s errand.