Should Labor cut ties with unions?

Union control of the Australian Labor Party is a significant obstacle to economic reform and will remain so as long as unions enjoy special legal privileges which reinforce their political power.

The royal commission has brought to light the many questionable deals made by union leaders.  But less examined is the main reason why these deals are made:  to expand influence within the ALP.

The right to join a union is a fundamental principle in a free society.  But it is unhealthy for an interest group representing a small and declining proportion of Australians to have such an unprecedented level of influence over policy.

Unions have always been an influential force in Australia.  In 1990, union membership was at 41 per cent of the workforce, making them an important stakeholder for governments of all persuasions.

But as union membership has fallen to 17 per cent of the total workforce, unions have sought other means to maintain their political influence.  The modern trade union ­leader is now often as much a factional powerbroker as an organiser for workers.

The most significant foundation of union control in the ALP is the requirement that 50 per cent of delegates to state conferences come from affiliated trade unions, which leads to a similar representation at national conferences.

This then extends throughout the organisational and parliamentary wings of the party.  As a result, 19 of the 26 National Executive members are current or former union officials and half of all ALP MPs have held a paid position in a trade union.  This includes 23 of 55 lower house MPs, and 17 of 25 senators.  More than half the ALP front bench, 22 of 43, are former union officials.

In effect, unions have been handed a veto over any policies which threaten their interests, such as the sale of electricity assets or labour market liberalisation.

Perhaps most importantly, Labor has also allowed unions to gain special legal privileges not available to other civil ­organisations, such as extraordinarily broad rights to enter workplaces.

These powers make it easier for unions to recruit and retain members and thus exercise more votes within the ALP.

The internal structure of the ALP is a matter for them.  However, the special privileges granted to unions which serve to entrench union power should be removed.

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