Thus, it is reasonable to expect that the changes will result in lower wages but more people actually having jobs.
The second part of this prediction is already playing out, but employers have not yet pegged back the pay packets of workers. The explanation for this is the skills and labour shortage currently in Australia. Bosses can’t decrease most of our wages because we are now a scarce resource. But some workers might find their wage packet thinning when the economy slows.
In any event, the likely long term effect of the legislation will see more people in jobs, but taking home less money. Is this preferable to a situation where there are fewer people employed but earning more money?
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This is contestable. But what is not contestable is that Labor and the unions overcooked their attacks on the laws. The changes don’t take back workers' rights and conditions to the 19th century and the skies have not fallen in.
The irony surrounding the legislation is that having cried wolf so loudly about the WorkChoices legislation, it might be the credibility of Labor that is diminished at next year’s Federal election.
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About the Author
Mirko Bagaric, BA LLB(Hons) LLM PhD (Monash), is a Croatian born Australian based author and lawyer who writes on law and moral and political philosophy. He is dean of law at Swinburne University and author of Australian Human Rights Law.