Australian industrial relations: no easy solutions

As Labor has indicated with its industrial relations reforms, the move toward a tougher labour market remains evident, despite its move to temper the pace of reform in line with public opinion.

While strong union influence will remain in the public sector and other private sectors, such as the commercial building sector should it withstand a greater entry by contractors, wages will continue to come under enormous pressure. This is especially true if governments look to skilled and non-skilled immigration to help solve many policy needs, a reality that is also placing immense pressure on housing costs as demand outstrips supply.

So let us have greater competition between Labor and the Coalition over one of the key issues that most affects many ordinary people.

While solutions are not going to be easy as the demands of the global economy will surely result in further pressure for labour market reform (to enhance business investment), industrial relations will test the sophistication of Australian society.

Though Labor carefully adopted the middle ground between necessary reform and public opinion by remaining Left of the Coalition on such a controversial issue, how long will the Coalition simply promote a quest evident since John Hewson’s 1990 Menzies lecture. A lecture outlining that a bid for “highly profitable, innovative companies which highly reward their workers” should be accompanied by the removal of hard won conditions such as the rostered day off, flexi-time, holiday leave loadings, and “sickies”.

There are many holes in Labor’s policy platform which gives the Coalition a chance to better address the complex link between economic success, wages, welfare, housing, and immigration.

However, have we merely entered an unprecedented age of rhetoric rather than substance as the difficulty of finding real solutions in this increasingly competitive world becomes evident as all nations struggle to balance a variety of policy needs as they seek to remain competitive in both taxation and labour cost terms.

If we do not find better solutions, then many Australian workers will experience a further decline in their purchasing power, although one can only hope that ongoing interaction between political parties, interest groups and public opinion continues to both recognise and address the needs of battlers.

If we can produce a better industrial relations policy stance, along with the many other issues that are linked to purchasing power (immigration and housing), then Australia will not need to return to a high rate of trade union membership, and will therefore provide another example of a successful and pragmatic nation.

Let the Coalition rise to the occasion in challenging Labor at the next election. Hopefully leading to better solutions rather than allowing Australians to rely on rhetoric and acknowledgement of problems while waiting for the next near or economic disaster to force change.