Scott Morrison to work with unions to devise changes to workplace rules

In a speech outlining how Australia will recover from the coronavirus pandemic, Scott Morrison has enlisted an unlikely ally to change workplace rules.

Scott Morrison has declared Australia's workplace rules “not fit for purpose” but he's outlined a plan to channel Labor hero Bob Hawke's consultation with unions rather than simply bosses.

Predicting that more Australians will continue to work from home in the post-COVID economy, the Prime Minister has warned the old, adversarial system of industrial relations will not help create jobs.

Instead, he's announced a proposal to get unions, employers, and government leaders to the table to find consensus on reform.

It's a plan that sounds a lot like the Accord agreement that the Hawke Government forged with union leaders including Bill Kelty in the 1980s.

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Former PM Bob Hawke and ACTU Secretary Bill Kelty.

“Our current system is not fit for purpose, especially given the scale of the challenge of the job that we now face as a nation,” he said.

“Our industrial relations system has settled into a complacency of unions seeking marginal benefits and employers closing down risks, often by simply not employing anyone. It is a system that has, to date, retreated to tribalism, conflict, and ideological posturing.

“This will need to change, or more Australians will unnecessarily lose their jobs, and more Australians will be kept out of jobs. The first step is to get everyone back in the room, to bring people together.

“No one side has all the answers. Employees or employers. Unions or employer organisations. It is not beyond Australians to put aside differences to find cooperative solutions to specific problems — especially at a time like this.”

Industrial relations reform has proven fraught for the Coalition in the past, with John Howard's WorkChoices later playing a significant role in his 2007 defeat.

Mr Morrison has also confirmed he will drop legislation designed to crack down on unions as a “show of good faith” to get union leaders, bosses, and workers to the table to find consensus on reform options.

“We need people to get together and sort this stuff out. As I say, they've been caught in grooves for too long, and grooves going in parallel lines and not coming together,” Mr Morrison said.

Prime Minister Scott Morrison at the National Press Club in Canberra today. Picture: Mick Tsikas/AAP

“The Government will not pursue a further vote in the Senate on its Ensuring Integrity Bill. Not pursuing a further vote, though, I hasten to caution on this bill, does not reflect any change or lack of commitment to the principle that lawful behaviour of registered organisations should be strictly required on all work sites in Australia.”

The Prime Minister warned he was not attracted to the idea of the government spending its way out of the crisis.

“Now, it's true that in the short-term demand stimulus by government can boost your economy,” he said.

“But it must only be temporary. At some point, you've got to get your economy out of ICU. You've got to get it off the medication before it becomes too accustomed to it. We must enable our businesses to earn Australia's way out of this crisis.

“The extent of the damage wrought by COVID-19 on the Australian economy, and the enormity of the challenge we now face to get Australians back into jobs, means the policy priorities for recovery will be different to those in place before the crisis.”

Mr Morrison said he would not arrive at the discussions with an “IR shopping list”.

“It may succeed. It may fail. But I can assure you, we're going to give it everything we can. It's been in good faith and it's been honest, and it requires everybody to leave a bit aside,” he said.

“I'm not going to prescribe it for them. Whatever they agree is more likely to be sustained and maintained into the future. But what I want them to focus on is an understanding that, if there's no business, there's no job. There's no income. There's nothing.”

The Prime Minister said he had been heartened by the constructive approach of employees and employers and business groups and unions working together in the ACTU with the government through the COVID-19 crisis.

“The Minister Industrial Relations — the Attorney-General — Christian Porter, will lead a new, time-bound, dedicated process bringing employers, industry groups, employee representatives and government to the table to chart a practical reform agenda — a job-making agenda - for Australia's industrial relations system,” he said.

“The minister will chair five working groups for discussion, negotiation, and hopefully agreement, to produce that JobMaker package in the following areas — award simplification, what most small and medium-sized businesses deal with in their employees every single day.

“Enterprise agreement-making — we've got to get back to the basics. Casuals and fixed-term employees, made even more prescient by recent changes through the Fair Work Commission. Compliance and enforcement. People should be paid properly. And, unions need to, obviously, do the right thing.”