Labor’s TPP deal curbs angst in the ranks

Labor has brokered a deal to quell internal revolt over its support for the government’s Trans-Pacific Partnership trade deal.

MP Jason Clare with Bill Shorten.

Federal Labor has brokered a deal to quell internal revolt over its support for the government’s Trans-Pacific Partnership trade deal, but a key union remains disappointed at what it regards as the party’s “betrayal” of Australian workers.

Labor trade spokesman Jason Clare yesterday introduced a private member’s bill into parliament that would introduce “market-testing” of the local workforce available for jobs before they could be offered to imported foreign ­labour under TPP provisions.

His bill also seeks to remove clauses that could allow foreign companies to sue the Australian government by alleging ­interference with their business.

The private member’s bill, moved by Mr Clare after weeks of wrangling with the ALP’s Left and blue-collar unions, follows discussions last week in Melbourne involving Bill Shorten, Mr Clare and senior union officials to try to head off an internal rift that threatened to upset party unity in the federal election lead-up.

The ALP Left and unions have voiced anger at Labor’s decision to back the Morrison government’s TPP-enabling legislation that would permit importation of foreign labour as part of free trade in the region.

Another key union objection is the TPP’s inclusion of dispute resolution provisions that could impinge on national sovereignty by allowing foreign companies to take the government to court over interference with trade.

Mr Clare’s bill has almost no hope of passing but seems to have quelled internal party upheaval for now. He has also committed that a future Shorten Labor government would return to the TPP provisions and “fix the mistakes” by appointing a dedicated team of foreign affairs department negotiators to remove labour market testing waivers and state dispute settling provisions from existing trade agreements.

Labor’s revisiting of trade agreements could most likely work only if such deals were not approved under parliamentary treaty committee rules before the election, and therefore remained open to renegotiation.

The deal announced by Mr Clare appears to have ended a threat by the Australian Manufacturing Workers Union, one of the ALP’s biggest donors and affiliates, to refuse to raise funds for the party at the coming election.

AMWU national secretary Paul Bastion welcomed Mr Clare’s bill but said it was “not a perfect outcome” and the union remained disappointed with Labor for supporting the Morrison government’s TPP legislation.

The ACTU was much more ­effusive, calling Mr Clare’s bill and related announcements a “seismic shift in ALP trade policy” that would ensure employers must hire locally before bringing in temporary foreign workers. It would also ban foreign companies suing Australian governments “in secret and unfair courts”.

Despite heated debate, Labor’s partyroom has backed the TPP and Mr Shorten has no plans to revisit the issue in shadow cabinet.

Politically, Labor’s TPP support appears to be a move to block government accusations it is anti-business and anti-free trade.

Trade Minister Simon Birmingham welcomed Labor’s support for the TPP, saying it would provide better access to export markets.