Such hyperbole clashes with Labor’s talk of the summit as an opportunity to forge consensus and co-operation between business and unions. It also fails to grasp the realities of Australia’s industrial law.
Reinforcing the union chokehold
Rather than freely bargaining, the workplace system grants unions the monopoly right to represent workers in award determinations and enterprise bargaining negotiations. The union chokehold over employers is borne out by the facts of the case that Mr Burke says supposedly shows why the law needs to change.
Port tug operator Svitzer has applied to terminate an expired enterprise agreement after more than 50 meetings with the Maritime Union of Australia failed to secure a productivity-boosting new agreement that would wind back restrictive work practices and intrusions on management prerogatives. The union’s stonewalling is an abuse of its institutional privileges, and completely contrary to the original win-win – higher pay for higher performance – purpose of the enterprise bargaining system.
The MUA has delayed the hearing of Svitzer’s application before the Fair Work Commission until December. That has bought time for Mr Burke to amend the Fair Work Act and save the union’s blushes.
The focus on a legislative bailout for Labor’s union comrades, while forcing employers to stick with non-performing enterprise agreements, is a disturbing sign of the government’s priorities.
Instead, Mr Burke should be hearing what is actually another cry for help from employers to fix the broken bargaining system that has been in steady decline since the Rudd government legislated the “better off overall test” on union orders. Or – with just 15 per cent of the workforce now covered by enterprise agreements – is Labor going to turn a deaf ear to business abandoning the bargaining system?
Is it going to do nothing to fix the BOOT that makes it impossible to achieve meaningful productivity gains from the costly and time-consuming bargaining process? If so, then what credible plan is the government going to take to the jobs summit to fulfill its election pledge to reverse Australia’s lost decade of sluggish productivity and real wages growth, especially as the inflation outbreak now means workers face real wage cuts?
The starting point should be for the minister responsible for industrial relations to take a serious interest in how the workplace system needs to change to deliver wins for both employers and employees, instead of just operating as the unions’ political mouthpiece and fixer.