
Issue No 33		01 October 1999

Unions

Breaking the Wave

ACTU President's submission to the Senate Inquiry into the Workplace Relations Act.

The principal object of the Workplace Relations Act 1996 is "to provide a framework for cooperative workplace relations which promotes the economic prosperity and welfare of the people of Australia."

Any objective assessment of the Act and its operations must give weight to:

� industrial considerations - what is going on in our workplaces, and how workers are being treated in their working lives;

� social considerations - how different sections of the community are faring and how this impacts on all of us as a society; and

� economic considerations.

It is not sufficient to just consider macro economic variables such as the rate of inflation, aggregate wages growth and productivity outcomes in isolation from the actual impacts on people and whether or not the benefits of economic growth have been fairly distributed.

The ACTU hopes that our submission will shed light on some fundamental issues that confront working people in their everyday lives.

Firstly, how has it affected working people and their families?

- Do they believe conditions of employment have improved?

- Are they secure in their employment?

- Have they lost conditions and suffered wage cuts?

- Are they provided with adequate protection in bargaining with employers?

- Has agreement making been fair and were they provided genuine choice about individual contracts or collective agreements?

Secondly, what impact has the Act had in broader terms:

- Has the legislation produced a fairer society?

- Is the industrial safety net continuing to protect those who are most vulnerable?

- Is there a proper balance in the bargaining relationship between employers and workers?

- Have we effectively used the institutional framework for conciliation and arbitration which has worked well for our society since Federation;

- What are the real issues for employees and employers in a changing labour market and does the legislation address them adequately?

When I appeared before this Committee on July 4, 1996 in relation to the Bill then before the Parliament, I argued that the proposed legislation would:

".......significantly reduce fairness in the workplace, leave the weakest in the most vulnerable situation, erode established practices and values supported by the community and inevitably lead to a widening of income and social inequalities."

Regrettably, the ACTU's predictions have come true. Since the 1996 amendments we have witnessed a range of negative outcomes, including

� erosion of the Award system with significant entitlements lost

� a facilitation of the growth in precarious employment, especially in full-time casual and temporary employment

� growing job insecurity

� lack of adequate protection of employee entitlements

� workers working longer and harder, which has impacted negatively on the balance of work and family life.

� inequities in the distribution of work

� a widening of income inequality

� wages growth per hour has been less for part time and casual workers than full time workers

� the gender pay gap is widening in overaward payments and in a range of industries

� many vulnerable workers have experienced wage cuts, through the loss of financial compensation for non standard working hours

� a dual labour market has emerged, with the most vulnerable workers in the most precarious forms of employment and on lower wages

In 1996 I also pointed out that our industrial relations system was crafted at the turn of the century to deal fairly with the conflicts which inevitably arise in the employment relationship, and to take account of the inequality of bargaining strength which is inherent in that relationship.

The ACTU argued that the Government's promotion of the notion of "choice" and "fair agreement making" was mere rhetoric.

I said,

"Many workers, particularly women, young people, part timers and workers in labour intensive service industries will be stripped of award protection and pushed into individual agreements offering substantially lower wages and conditions."

And regrettably, again, this is exactly what has occurred. In case after case there has been no choice in agreement making. Workers have been coerced into accepting individual contracts and at times provided inducements for accepting AWA's. Despite the lack of public scrutiny, researchers report that overall AWA's and non union agreements "are far more likely than union agreements to contain provisions which reduce the compensation for non standard working hours... and provide for no wage increases." (ACIRRT)

In 1996 we also argued that

"The Bill is intended to begin the process of wage reduction for the most vulnerable and prepare for the next stage by weakening the Commission and attempting to minimise the role of unions in the industrial relations system."

The traditional functions and powers of the Commission have been weakened; unions and their members have come under increasing attack as witnessed in the MUA dispute, ILO Conventions on collective bargaining and the right to organise have been breached, and collectivism undermined at every opportunity.

The proposed amendments to the Act can only exacerbate the situation.

They are patently unfair, unnecessary, unjust and unworkable.

No case has been made by the Government for the proposed legislation either on economic, social or industrial grounds.

The Bill should be withdrawn.

The nation's political leaders would be well advised to listen to the concerns of ordinary working people and consider seriously the ACTU's proposed amendments. They seek:

� to ensure that the Industrial Relations Commission has the powers it needs to resolve disputes;

� to give workers the security of a strong award system with fair wages and conditions;

� to enable workers to be able to choose to be represented by their union in collective enterprise agreements, if that's what they want.

The ACTU does not believe that Australians want a society where the balance has moved so heavily towards employers. Where the Industrial Relations Commission has no power to assist them reach agreement with employers, or decide matters where agreement cannot be reached. Where they have no effective right to strike, or any other way or having their claims heard and decided.

This Bill reflects the partisan and divisive approach which the Minister has taken to industrial relations issues, epitomised in his role in last year's waterfront dispute.

The ACTU urges the Committee to recommend that any legislative change is directed towards increasing balance, fairness and justice in our industrial relations system.

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  Issue 33 contents

Interview: The Boys
Labor Party heavyweights Eric Roozendaal and Damian O'Connor will lock horns this weekend. They fire their first shots.

Economics: Reasons to Be Cheerful
Can we change the way we look at the economy to better reflect community happiness and well-being?

Unions: Breaking the Wave
ACTU President's submission to the Senate Inquiry into the Workplace Relations Act.

International: The Wisdom of Solomon
A disturbing case from the Pacific where corporate lawyers are playing a deadly game.

History: Groundhog Day
Ghosts of Conferences past: some strangely familiar debates and decisions from previous state ALP conferences

Legal: Bad, Bad Things
Some of Australia's leading industrial lawyers argue that the Workplace Relations Act breaches basic international obligations.

Review: Tailing Out
As the BHP steelworks close in Newcastle a special book chronicles the stories of working live that have just become history.

Satire: Police Cut-Backs Lead To Drop In Organised Crime
An audit of the NSW Police has revealed that they have been seriously cutting back their operating budgets to ensure that they will be able to afford the increased security costs of the Olympics.

Work/Time/Life: It's Official: Aussies Work Harder
Australians continue to work long hours in contrast to a world-wide trend in industrialised countries that has seen hours at work remaining steady or declining in recent years.

» Station Cuts Derailed - But More Hits for the Scull

» Social Audit Backed by Community Groups

» Unions Take Common Priorities to State Conference

» Simmering Discontent Hits Boiling Point

» Public Sector Job Numbers Rubbery

» Timor Protest to be Dumped in Reith Wave

» Big Lunch Break for Stress-Free Day

» Arch Apologises for Youth Wage Debacle

» Clean Air Policy Up In Smoke

» Child Carers Stretched to the Limit

» Building Workers Won�t Settle for Half Pay

» Life, Art and Politics