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Labor's election pledge: we will boost bargaining power of workers Labor's election pledge: we will boost bargaining power of workers
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Workplace relations spokesman Brendan O’Connor will say decline of union power has played central role in low wage growth and insecure work
Katharine Murphy Political editor
Tue 1 Aug 2017 19.01 BST
Last modified on Tue 1 Aug 2017 19.02 BST
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Labor will flag its intention to overhaul Australia’s workplace laws at the next federal election to boost the bargaining power of workers at a time when wages growth is stagnant and the labour market is in transition.Labor will flag its intention to overhaul Australia’s workplace laws at the next federal election to boost the bargaining power of workers at a time when wages growth is stagnant and the labour market is in transition.
The opposition workplace relations spokesman, Brendan O’Connor, will use a major speech to the Sydney Institute on Wednesday evening to make a case that the dwindling bargaining power of workers and trade unions has played a role in low wages growth and the “proliferation” of insecure work.The opposition workplace relations spokesman, Brendan O’Connor, will use a major speech to the Sydney Institute on Wednesday evening to make a case that the dwindling bargaining power of workers and trade unions has played a role in low wages growth and the “proliferation” of insecure work.
O’Connor will pose questions including whether enterprise bargaining is working for low-paid workers, whether awards still comprise an adequate safety net, whether the Fair Work Commission has sufficient powers to step in when parties are not bargaining in good faith, and whether the law gives workers sufficient rights of representation.O’Connor will pose questions including whether enterprise bargaining is working for low-paid workers, whether awards still comprise an adequate safety net, whether the Fair Work Commission has sufficient powers to step in when parties are not bargaining in good faith, and whether the law gives workers sufficient rights of representation.
The signal from O’Connor on Wednesday night comes as trade unions have redoubled efforts to win concrete commitments from Labor to overhaul the Fair Work Act if the opposition wins the next federal election.The signal from O’Connor on Wednesday night comes as trade unions have redoubled efforts to win concrete commitments from Labor to overhaul the Fair Work Act if the opposition wins the next federal election.
Last weekend’s New South Wales Labor conference heard fiery contributions from union officials about the need to change the framework. Dave McKinley from the Electrical Trades Union declared: “We need to tear the bloody [Fair Work Act] up, we need to burn it and start again.”Last weekend’s New South Wales Labor conference heard fiery contributions from union officials about the need to change the framework. Dave McKinley from the Electrical Trades Union declared: “We need to tear the bloody [Fair Work Act] up, we need to burn it and start again.”
Brian Parker from the Construction, Forestry, Mining and Energy Union characterised the laws as “rat shit” and said he hoped the union movement “with our lawyers” would be at the forefront of Labor’s efforts to rewrite the legislation.Brian Parker from the Construction, Forestry, Mining and Energy Union characterised the laws as “rat shit” and said he hoped the union movement “with our lawyers” would be at the forefront of Labor’s efforts to rewrite the legislation.
Business reacted with alarm after the policy debates at the NSW conference. The chief executive of the Ai Group, Innes Willox, said: “The last thing that is needed is for the retrograde, anti-business proposals of the union movement to be adopted by mainstream political parties.”Business reacted with alarm after the policy debates at the NSW conference. The chief executive of the Ai Group, Innes Willox, said: “The last thing that is needed is for the retrograde, anti-business proposals of the union movement to be adopted by mainstream political parties.”
Willox warned that any legislative changes “needed to be in the national interest, not just in the union movement’s narrow interests”.Willox warned that any legislative changes “needed to be in the national interest, not just in the union movement’s narrow interests”.
The Turnbull government responded to Labor’s recent focus on inequality by arguing the opposition was engaged in class warfare, and was overstating the problems in order to play to populist sentiment.The Turnbull government responded to Labor’s recent focus on inequality by arguing the opposition was engaged in class warfare, and was overstating the problems in order to play to populist sentiment.
O’Connor will say Labor intends to bring workers, employers and unions together to consider how labour market regulation needs to change to address current and future challenges, including more automation.O’Connor will say Labor intends to bring workers, employers and unions together to consider how labour market regulation needs to change to address current and future challenges, including more automation.
He will argue the legal framework needs to be looked at because “the economic consequences of the shift in bargaining power from worker to employer are undeniably damaging”.He will argue the legal framework needs to be looked at because “the economic consequences of the shift in bargaining power from worker to employer are undeniably damaging”.
“What is behind the inequality that we see in today’s labour market – the flat wage growth, the proliferation of insecure work, the falling share of GDP accruing to employees, and the relative impoverishment of low-skilled workers?” O’Connor will say in his speech.“What is behind the inequality that we see in today’s labour market – the flat wage growth, the proliferation of insecure work, the falling share of GDP accruing to employees, and the relative impoverishment of low-skilled workers?” O’Connor will say in his speech.
The dwindling bargaining power of workers ... has played a central role [in inequality].The dwindling bargaining power of workers ... has played a central role [in inequality].
“Without a doubt, the dwindling bargaining power of workers and their representatives has played a central role”.“Without a doubt, the dwindling bargaining power of workers and their representatives has played a central role”.
O’Connor will argue reform of workplace relations is not just a preoccupation of the union movement but orthodox economic thinking.O’Connor will argue reform of workplace relations is not just a preoccupation of the union movement but orthodox economic thinking.
“You just need to read the 2017 OECD employment outlook, which makes it very clear that declining union membership and reduced worker bargaining power are key factors behind rising inequality.”“You just need to read the 2017 OECD employment outlook, which makes it very clear that declining union membership and reduced worker bargaining power are key factors behind rising inequality.”
The opposition spokesman will argue the Turnbull government remains committed to the principles of trickle-down economics when policy thinking has moved on.The opposition spokesman will argue the Turnbull government remains committed to the principles of trickle-down economics when policy thinking has moved on.
“According to the OECD, economies with more equal distributions of income and wealth experience stronger and more stable economic growth,” he will say.“According to the OECD, economies with more equal distributions of income and wealth experience stronger and more stable economic growth,” he will say.
“Our economy is strongest when it is powered by a skilled, capable and confident working and middle class – our economy is strongest when our society is more equal.”“Our economy is strongest when it is powered by a skilled, capable and confident working and middle class – our economy is strongest when our society is more equal.”
Industrial relationsIndustrial relations
Australian trade unionsAustralian trade unions
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