Does Malcolm Turnbull's exciting future include a fair go for workers? We hope so
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Version 0 of 1. Last Christmas, Joe Hockey and Eric Abetz asked the Productivity Commission to provide them with a road map to reshape Australians’ rights at work. At that time, we argued the Abbott government was asking the commission to do what it was not prepared to do itself: make the political case to pull apart Australia’s social compact. Much has changed since then. Neither Hockey nor Abetz continues to serve as a minister. We have a new prime minister in Malcolm Turnbull. When it comes to the world of work, Turnbull faces some important choices. Related: Cutting penalty rates would hit most vulnerable, unions warn On some issues, we see that Turnbull’s approach has changed. He has, apparently if not actually, adopted colleagues’ thinking on matters formerly of conviction for him, like responding to climate change and marriage equality. But his current thinking on workplace relations is mostly unknown. This isn’t good enough. The Productivity Commission is about to finish its inquiry. Its draft report gives a flavour of what might be expected: it is dismissive about job insecurity, recommends pay cuts through changes to weekend rates, and supports wage-fixing changes that would undermine collective bargaining. The trade union royal commission, discredited as it is, will shortly come to an end and make findings and recommendations. Employer associations are articulating their wish lists of ways to erode conditions and decrease working people’s power. Some of those employer groups are, like unions, registered organisations in our workplace relations framework. They are not disinterested observers. Each of the Productivity Commission inquiry and the trade union royal commission will give Turnbull a blueprint to make changes shifting Australia to the right on industrial relations. That is the purpose for which they were initiated. In addition, interventions initiated by employer associations will provide Turnbull with a measure of support, outside the confines of the party room, for a shift to the right. In an interview with the ABC’s Leigh Sales, Turnbull acknowledged that there had been a “vexed” debate on workplace relations, but said: the challenge for us is not to wage war with the unions, or the workers that they seek to represent, but really to explain what the challenges are, and then lay out some reform options. He should start by explaining two challenges: slow multi-factor productivity growth – including the non-labour aspect of productivity and factors such as management and the use of technology – and rising inequality. And what does he mean by “reform options”? Reform options should follow the articulation of the challenges, not the other way around. Suggestions that Turnbull is minded to support attacks on weekend penalty rates of low paid workers really concern us in this regard. What’s this got to do with anything other than playing to the same conservative base that persuaded him to change course on climate and marriage? What’s this got to do with the evidence, much less any sense of a fairer future? When it comes to productivity, it’s been clear for some time that Australia’s problems aren’t with workers, or work practices. The Productivity Commission’s draft report recognises this, though further emphasis is warranted. Recently, labour productivity growth has risen, especially under Fair Work, while multi-factor productivity growth has lagged. This is a major threat to maintaining living standards, and it won’t be addressed through repeating the tired ideological canards of the conservative past. We are pleased the Productivity Commission recognises that the labour market is qualitatively different to other markets of buyers and sellers. But we’re concerned that this recognition hasn’t, yet, been consistently applied across the draft report. Most obviously in the confused attitude to penalty rates, where the advocacy of changes to the detriment of workers with limited bargaining power flies in the face of this principled approach. The stakes for workers, and for the shape of our future, are high. Recent data makes clear that Australia is now as unequal as it has ever been. This isn’t solely a function of labour laws, of course. Much of the increase in inequality is derived from the wealthiest Australians’ non-wage earnings. At the end of the day, this is a question of earnings, not so much jobs per se, but questions of power at work remain vitally important for most Australians. Inequality raises profound moral and practical challenges. As the leader of a conservative party, we don’t expect that the new prime minister shares all of our concerns. But he can’t ignore them. Not least in light of productivity and inequality’s impact on economic growth. Rising inequality at the very least requires our nation to take a broad view about what’s happening in the world of work, and to consider why so many are falling behind while others enjoy extraordinary wealth. We are especially concerned about insecure forms of work, and the insecure lives this fosters. We have made a submission to the Productivity Commission, requesting that it take a closer look at this issue, as job insecurity affects one in four working Australians, directly. Related: Malcolm Turnbull plans 'more flexible' industrial relations but without union war It’s a good thing that we have a prime minister who is talking about the future, and who is optimistic about Australia’s prospects. Like Turnbull, and unlike Tony Abbott, we’re also believers in hope – not fear. But let’s get real. And let’s not conflate Malcolm Turnbull’s prospects with those of all Australians. The labour share of the national income has been in decline since before Bob Hawke was prime minister. Wages growth is at a record low. More than 800,000 Australians are looking for work. Millions more lack job security or have less work than they want. This is the real challenge we must respond to, in responding to the recommendations of the Productivity Commission. To speak of “freedom, the individual, and the market” doesn’t offer much to those selling the skills they have in the labour market that’s pretty heavily favouring buyers at the moment. When we should be saying to working Australians, and to their families, that we’re on their side. That the times we live in can be exciting for them, too. |