Lawyers will turn Howard’s industrial nirvana into employer hell

On the other hand, Jasmine may have resigned or been offered a redundancy package. She may even have been dismissed. She may well have a more lucrative option of an application under s106 of the NSW Industrial Relations Act for unfair contract. Similar provisions also exist in Queensland and other States and Territories as well as at Commonwealth level.

Jasmine could apply for a host of things. Her claim would not be limited to six months wages. Further, we could ask the commission to make orders that her employer pay all or part of her legal fees. And we could couple it all with a claim for unpaid entitlements.

If employers realised how expensive a claim for unfair contract is (as opposed to an unfair dismissal claim), they would not be cheering Mr Howard on in his crusade against state unfair dismissal laws. If unfair dismissal is made unavailable, more litigants will use alternate legal avenues which will prove even more expensive for employers.

Next, let’s look at the focus on individual and workplace agreements. Who is going to advise on these agreements? Who will draft them? Will there be one standard agreement? Or will we see different agreements for different level staff? How will all this tie in with Occupational Health and Safety, anti-discrimination and other matters? And who will adjudicate in the case of disputes?

I admire Mr Howard for trying to free up the industrial marketplace. It is badly in need of deregulation. For too long, workers and employers have been hampered in their dealings by too much regulation and red tape. But methinks the Howard reforms will achieve little for either side. Mr Howard has failed to consider litigation dollars and cents.

And without considering the dollar-and-cent decisions, the reforms will make little sense in the long run.