Thursday, August 13, 2015

‘Repair not replace’: Productivity Commission disappoints workplace reform hardliners

by Dr Mark Hearn

Productivity CommissionIn a blow to the Abbott government’s attempts to set the stage for a second-term attack on worker and union rights, the Productivity Commission’s draft report on workplace reform has found that ‘many features’ of the current Fair Work system ‘work well’.

The draft report, ‘Australia's Workplace Relations Framework’, has found that Australia's workplace relations system is not ‘systemically dysfunctional’.

'Many features work well, especially given the need to find balance between the conflicting goals of the parties involved,' Peter Harris, Chairman of the Commission said.

'Changes to the workplace relations framework have to recognise that it's not just about the economics. There are ethical and community norms about the way in which a country treats its employees.'

The PC chairman’s language is hardly the call to arms urged by neo-liberal hardliners as they demand the Abbott government implement sweeping labour market deregulation and an end to trade union ‘privileges’ – such as workplace access to their members.

Peter Harris’s reference to ‘ethical and community norms’ are more evocative of the notion of a living wage necessary to sustain families in a civilized community that Justice Higgins outlined in his 1907 Harvester judgement, which established the notion of a Commonwealth minimum wage.

The union movement rang alarm bells about some the recommendations and proposals outlined in the report.

The Shop, Distributive and Allied Employee’s Association warned that a PC report recommendation to cut Sunday penalty rates in the hospitality and retail sectors would have ‘a devastating impact on hundreds of thousands of workers.’

The Australia Council of Trade Unions argued that a proposal to consider ‘enterprise contracts’ would be worse than the individual contracts or Australian Workplace Agreements introduced under John Howard’s WorkChoices.

The PC report suggested that consideration be given to the introduction of enterprise contracts, allowing small businesses to avoid union-negotiated enterprise bargaining. This proposal was not a formal recommendation.

The draft PC report did argue that ‘important reforms are needed, preferably soon.’ Notably the PC observed that the appointment process for Fair Work Commission members is ‘clearly flawed’, reflecting bias towards appointments from union and employer backgrounds: ‘its appointments need to be beyond question, merit-based and involve all Australian governments. It needs an infusion of new skills and should develop its own evidence bases.'

A full outline of the PC draft report can be found at the link below. The final report will published in November 2015.

http://www.pc.gov.au/inquiries/current/workplace-relations

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