The benefits of a freer labour market

Bill did not have a job before. He now has one. Is this not an improvement for Bill?

If, as a result of the new industrial relations legislation, the pay and conditions of work that schoolleavers (like Bill) are looking for deteriorate (as predicted), two things will happen: more young people like Bill will be employed, and fewer young people will want to leave school. Are not both of these outcomes desirable from the point of view both of the young people concerned and from the community’s perspective?

Another reform that has attracted controversy is the effective ending of unfair dismissal laws for businesses employing fewer than 100 people. Making it easier to sack employees is certainly harsh on people who are good workers, but who refuse to perform unreasonable acts demanded by their boss.

But why would a sensible person want to remain in the employ of a bastard like that, anyway?

The problem that decent employers face is finding it costly (because of an unfair dismissal action) to let people go who are not productive enough, or not fitting in well enough. The consequence is that businesses will be more reluctant to hire people. If it is easier to let people go, job applicants with less compelling qualifications are more likely to be given a chance.

As time passes, and people and enterprises adjust, more and more of the results of the new reform proposals will turn positive. They will make a good contribution to the long run welfare of the Australian people.