John Howard yesterday put bosses on notice to act within the law as public outcry over a spate of sackings threatens to unravel support for the Government's new workplace rules.
ACTU chief Sharan Burrow said the Cowra case was an example of the "bastardry" of the new laws.
"Unless this company can be proved to actually employ more than 100 workers, and not have sacked those people for operational reasons, his laws can be used to do just what they did," she said.
The Prime Minister has been frustrated that negative effects of the new rules, such as sackings, have dominated the headlines.
Mr Howard said large employers would be "wrong" if they invented an operational reason to sack workers.
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