Abandon workplace wars for post-virus jobs growth

ACTU secretary Sally McManus was right to declare in our pages on Thursday that as we contemplate the mammoth challenge of rebuilding Australia’s economy, “it’s become clear that there is no going back to business as usual”. Unemployment is still rising, companies are failing, investment has slumped and vast areas of industry are on life support. Our industrial relations have regressed, exacerbating conflict and entrenching tribalism. Scott Morrison has urged trade unions and employers to put down their weapons and find common ground. That’s the new spirit his government will try to encourage as a facilitator of five working groups in coming months to make workplace relations fit for purpose in a post-pandemic rebuild.

Something was needed to break the sclerosis at the workplace, and the Prime Minister has pursued a middle-of-the-road path. The big-bang reform of John Howard’s Work Choices and steady union-directed re-regulation of the workplace under Kevin Rudd and Julia Gillard bequeathed a sick, hybrid enterprise bargaining system with multiple comorbidities: overly complex awards (and too many of them), an absurd “better off overall” test for new agreements, and the world’s highest minimum wage, to name but a few ills. Several thorough reports detected systemic blockages, but the Coalition had become timid, while Labor under Bill Shorten had settled on full-scale class war: a “living wage” by fiat and a shifty fix of the workplace rules to benefit its industrial wing. A year ago, mainstream voters rebuffed this suspect redistribution agenda and put their trust in Mr Morrison’s more orthodox economic management and aspiration.

This middle-of-the-road approach to workplace reform is not a variant of Bob Hawke’s Prices and Incomes Accord model of almost four decades ago. How could it be, given institutional makeover, the Coalition in power and a minimalist role of unions in economic affairs? Mr Morrison’s compact is alive to the near impossibility of achieving meaningful legislative change with a fractious Senate. Witness the Canberra palaver in trying to put limits on the lawlessness of rogue construction unions. To the chagrin of employers and his own MPs, Mr Morrison has set aside the Ensuring Integrity bill. Ms McManus has recognised the merit of employer concerns over the “better off overall” test and inefficiencies and delays in the bargaining process. The coming talks will involve give and take, but the national interest demands a new order that encourages job creation.

Labor is struggling to find its balance and a positive role during this peace. When Anthony Albanese was elected Labor leader, he vowed to ditch class fury and support policies that aided output growth — rather than continue Labor’s redistribution fetish. The Opposition Leader is not completely shut out of the reform process, given Labor eventually will vote on any new industrial legislation. But the early signs are not promising, as many in Labor’s political show have built brands on “fighting Tories”. ALP national president Wayne Swan, an inveterate class warrior even when federal treasurer, is again rattling the tin for donations: “We’re fighting against vested interests with deep pockets who will use this pandemic to drive down wages and conditions.” Mr Albanese’s challenge is to show he is committed to jobs and recovery, not reviving ancient battles in these calamitous times.