ACTU to knock some consensus into bosses despite government’s unity pledge

The ACTU has launched an extraordinary attack on bosses and blamed ‘poor management’ for sluggish productivity, as employers unite ahead of the economic reform roundtable.

ACTU secretary Sally McManus, and inset, Anthony Albanese on Thursday. Picture: NewsWire/Aaron Francis

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The ACTU has launched an extraordinary attack on bosses and blamed “poor management” for sluggish productivity, as employers unite to call for a 25 per cent cut to red tape and a formal review into tax ahead of next month’s economic reform roundtable.

The breakdown of Anthony ­Albanese’s and Jim Chalmers’ push for consensus comes as the Productivity Commission warns the rapid expansion of the care economy has hampered productivity growth.

In an overview of five interim reports to be released ahead of the roundtable in August, the commission argued “poor choices by successive governments coupled with a lack of appetite for economic reform” had added to the productivity challenge.

“In the last decade, non-market (government-funded) health, education and care services have grown particularly rapidly in Australia,” the report says.

“Since these sectors have lower measured productivity, their expansion weighs on overall productivity growth. These sectors provide important supports to many Australians, and some of the lower productivity in non-market services likely reflects measurement issues (discussed below). But it also reflects the real challenge in achieving productivity gains in ­labour-intensive sectors.”

The commission has flagged recommendations in its final ­report due by the end of the year that will “reduce future demand for care services”. It is also flagging recommendations on “more efficient uses of capital and labour” including allowing people smoother entry into essential trades, ways to reduce the costs of achieving net zero and corporate tax reforms to boost investment.

Commission chair Danielle Wood said full-time workers would be “at least $14,000 a year better off by 2035” if productivity growth could be restored to its historic average.

On the day 27 major employer groups including the Business Council of Australia release a united submission on what they will be pushing for at the roundtable, the ACTU will use a survey of workers to blame the “underperformance of Australian managers” for the productivity challenge. The union attacks drive a sledgehammer into the push by the Prime Minister and Treasurer for consensus at the roundtable, with Dr Chalmers last month declaring “consensus will be everyone’s responsibility”.

ACTU officials have received four out of 24 invitations to the roundtable, with employers represented by the BCA, the Australian Chamber of Commerce and Industry, Australian Industry Group and the Council of Small Business Organisations of Australia.

Showcasing the growing gulf between members of the roundtable, Ms Wood will be attending and the body’s “five pillars” reports will help inform discussions.

While business groups are warning the economy is being strangled by red tape and inefficient taxes, ACTU secretary Sally McManus says productivity is flagging because bosses are burning out workers and not consulting them on decisions. “Too often, too many employers have equated lifting productivity to doing more with less pushing people to work harder for longer. This leads to burn out which harms productivity,” Ms McManus she will say while launching the survey.

“This new survey highlights the symptoms of one of the most significant causes of slow productivity growth in Australia – poor management performance. Despite this issue being uncovered in many significant international and local studies, our Productivity Commission largely ignores it.

“It reinforces Harvard Business School findings that one of the biggest drags on Australia’s productivity is the underperformance of Australian managers, with badly managed firms dragging down Australia’s overall performance, particularly compared to the United States.”

Ms McManus’s criticism of the Productivity Commission will come days after Australian Manufacturing Workers Union national secretary Steve Murphy called for the body to be abolished.

While The Australian has not seen the union survey, the ACTU says it shows 39 per cent of workers feel burnt out, 28 per cent are regularly asked to work extra hours and more than half feels there are not enough staff at their workplace.

The business groups’ submission calls for: a commitment to cut regulations by 25 per cent by 2030; more incentives for research and development; a limit on ­regulation of artificial intelligence so investment isn’t deterred; a comprehensive three-month review into the tax system; and an overhaul of environmental approvals. The groups represent big and small business, miners, builders, universities, tourism operators, energy companies, telcos, tech ­giants, big banks, insurers and airports. BCA chief executive Bran Black said the alliance employed “millions of Australians” and the policies it was pushing would ­“improve living standards for everyone”.

“We need to cut unhelpful red tape, streamline planning, fix the tax system and improve incentives for investment,” Mr Black said.

“These policies can deliver benefits for economic activity across the whole country and importantly ensure future generations aren’t worse off.”

Australian Banking Association chief executive Anna Bligh – a former Queensland Labor premier – said the business groups had “outlined practical steps the government can take now to boost investment and innovation”.

The PC report released on Friday, which covered more than 500 policy ideas, did not hold back from scolding the government for not undertaking reform. “Poor policy choices by successive governments, coupled with a lack of appetite for economic reform, have also weighed on productivity growth by adding unnecessary frictions to the Australian economy,” it said.

Labour productivity growth has averaged just under 0.4 per cent a year since 2015, compared with the 60-year average of 1.6 per cent. The commission said labour productivity growth was “yet to show signs of reviving”.