Putting unions back in business

Tony Burke is sending the wrong message about the government’s jobs priorities with his outspoken remarks on existing business rights in enterprise bargaining disputes. The Employment Minister’s comments could place undue influence on the Fair Work Commission, which had been due to hear a dispute involving tug operator Svitzer and the maritime workers union on Monday. That hearing has been postponed and is now expected in December but Mr Burke has left all parties in no doubt about where the government stands.

At issue is the right of companies to cancel enterprise agreements and put workers back on standard award conditions if agreement cannot be reached at the end of a contract period. An agreement covering tugboat operators employed by Svitzer expired in 2019 and has been the subject of more than 50 meetings to move forward. Mr Burke says if Svitzer is successful in its appeal to the FWC for the enterprise agreement to be cancelled, workers will lose up to 40 per cent of their earnings. He has signalled that Labor will legislate to scrap the provision allowing companies to cancel agreements, which he said was a “rort” that is against the national interest. He says the issue will be on the agenda at next month’s Jobs Summit, where the government is seeking a new consensus between unions and business on workplace relations. Mr Burke’s comments signal Labor will seek to scrap the unilateral termination provisions as part of a package of industrial relations changes to be introduced into parliament by year’s end.

There is widespread agreement among businesses, government and the union movement that the existing enterprise agreement system needs to be overhauled. Mr Burke says the government will be looking at a different kind of solution to industrial issues based on consensus and co-operation. He says the government wants the FWC to facilitate bargaining and help parties make agreements, not spend its time terminating agreements against the wishes of the workforce. The government says it wants to make sure the bargaining system works for small business and for women, and delivers agreements that include pay rises and productivity. But the message from Labor to date, including defunding of the Australian Building and Construction Commission and plans to scrap employer negotiating rights, is a long way from the Hawke-era consensus model that has been promised.

All parties must digest the lessons in last week’s Productivity Commission report, and the Reserve Bank statement on monetary policy released on Friday, to appreciate what is needed to balance a tight labour market, low productivity and rising inflation. Workplace bargaining must be allowed to produce benefits for employers and workers alike. When disputes arise they must be dealt with by an independent umpire free of government interference.