Workers of the Future

There has been a silent revolution going on in the business of work which is now beginning to gain voice.

Workplace regulations have traditionally been based on the idea that employment is inherently a master-servant relationship.  That is, employers have the power to dictate the type and conditions of work, and thereby exploit workers.

The response, both here and abroad, has been to regulate the contract of employment separately, and differently, from other commercial contracts.

In Australia, this has led to the formation of special laws and courts to adjudicate employment contracts, and special negotiating rights to third parties such as peak employer groups and unions.

The focus of general contract law is to allow individuals freedom to contract;  bolstered by competition law to guard against monopolies or unfair advantage.

In employment law, the rights of individuals to enter into contracts for work are greatly restricted and co-operation and collusion between employees and employers are promoted while competition between workers is inhibited.

Some types of workplace and employee, for which the master-servant paradigm clearly does not fit, have long been allowed to operate outside the formal industrial relations system -- family owned and operated businesses, the professions and senior managers.

The home building industry has also been uniquely successful in keeping itself based on a system of individual contractors and therefore outside the industrial relations system.

Nonetheless, most other workplaces have traditionally been forced into the master-servant system, whether it fitted or not.

The situation is, however, changing.  The master-servant paradigm fits a shrinking proportion of workplaces -- in particular, it is often not appropriate for many of the fast-growing service industries such as IT, communications, personal, finance and householder services.

It also no longer fits the expectations of a growing number of younger and older people, who place a high priority on maintaining flexibility, control and independence.

The simply fact is that in the world of work, where brains and individual skills are paramount, these days workers are more often the master than the servant.

As a result, more people are operating outside the industrial relations system by being independent contractors.  Indeed, 25 per cent of the private sector work force is now independent contractors.

In contrast, only 17 per cent of private sector workers are members of a union.  Importantly, the movement to independent contracting is being driven in the main not by businesses seeking to avoid the restrictions of the formal system, but by people seeking an arrangement that best fits them.

Moreover, the movement to independent contracting is gaining force despite change in the formal system which allows greater personal choice such as individual contracts.

The problem has been that aside from the Housing Industry Association, independent contractors have not had a voice in policy circles.

That is, until the recent formation of Independent Contractors of Australia.  This has become an influential voice for contractors across industries and issues.

The inaugural ICA summit will be held on the August 24 in Canberra.

Judging by the quality of its speakers and participants, it is set to be a major event and policy makers are increasingly listening to the views of independent contractors.

This represents a potential sea change in the world of work.

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