International Labour Organization finally faces reality

In Australia, the impact is direct and immediate. The industrial relations “employment deeming” provisions in Queensland and the industrial relations “unfair” contracts provisions in NSW are stripped of international labour standards credibility.

The proposed federal independent contractors legislation is in accord with the new ILO standard. It keeps definitions within the common law structures which fit with the ILO standards and targets the elimination of sham or disguised employment.

This flips Australian political norms on its head. Some state labour governments suddenly find themselves in contravention of ILO labour standards with the federal coalition in accord. Australian political orthodoxy would suggest it’s supposed to be the other way around!

However it’s not really that surprising. Since the collapse of the Berlin Wall the traditional 20th century, left versus right simplicity of politics, has rapidly declined. Communities increasingly do not define themselves in class warfare terms between workers and bosses. Issues that divide and unite communities are now more complex, diverse, unpredictable and fluid.

In the work environment many workers seek to be, and many are, their own boss. The right to be your own boss is a human rights issue. Governments must not take away that right. This is now recognised at the ILO.

But there’s more. If labour regulations were to have continued their intrusive thrust into commercial transactions, great economic harm would have been done. Commercial activity has already been severely assaulted by attacks against legitimate contracting out, labour hire, franchising and leasing. In thousands of unseen ways these regulatory attacks and others reduce the success of economies.

In addition, no economy can succeed where certainty of commercial transaction is destroyed by either war, bad public policy or other causes. Where commercial uncertainty exists the opportunity to break poverty cycles and to achieve national and global economic equity is diminished.

In June 2006 the International Labour Organisation made a step in an historic, positive direction. Understanding the significance of this step and following through with national and global policy alignment is the next challenge.