Why is it that in this election the ALP finds itself confronted by open business opposition to its industrial relations policies when the ALP claims its policy is "light touch"?
The reason is simple: any detailed study of federal ALP policy shows that it will turn the industrial relations system into a super regulator of management, making direct worker--management discussion and agreements too complex to do in practice.
Business has become used to the Howard government's Workplace Relations Act which has a few key features. First, it focuses on protecting worker entitlements under core awards. Then it offers workers and managers three options: collective agreements with unions; collective agreements without unions or individual agreements (AWAs).
Further, the 28 per cent of the private-sector workforce who are not employed but are independent contractors can work outside industrial relations control under commercial contracts.
By comparison, the ALP policy would do the following: expand the reach of industrial relations into commercial contracts; push independent contractors into the industrial relations net; remove the individual employment agreement option; and give unions authority over all collective agreements removing the non-union option in all but name.
It goes further. ALP policy announces a new but unexplained wage-setting system, including reintroduction of paid rates awards for the public service. It then ties government procurement policy to its industrial relations policy.
The Federal ALP policy will, following New South Wales industrial relations legislation, expand the Industrial Relations Commission into purely commercial areas. In NSW, the IRC has begun to rule on commercial tenancy leases and franchise agreements, and even looks to rewrite business sale agreements retrospectively. This will happen under Federal Labor and will lead to commercial and management issues being inserted into employment agreements. This will cause uncertainty and distort commercial and managerial decision-making.
Federal Labor also plans to follow NSW's lead, allowing enterprise agreements that inhibit the use of labour hire, force unrelated companies into union agreements, deliver control of training to union bodies, require non-unionists to pay unions fees, facilitate committees that usurp management authority, and restrict the ability of firms to negotiate union EBAs.
Federal ALP also proposes Queensland-style legislation that denies independent contractors their right to be independent contractors.
Finally, federal ALP goes further than NSW and Queensland where, under the terminology of "good faith bargaining", it would be illegal for businesses not to enter industrial negotiations with a union and would give the Commission power to force agreements onto unwilling businesses. In addition, the Commission will have the power to force companies to divulge commercial information.
The package is locked together by downgrading the power of the ACCC under the Trade Practices Act to prevent secondary boycotts. This is consistent with Federal ALP policy to replicate NSW outworker legislation, which subjects commercial transactions in specified markets to industrial relations legislation and price fixes in those markets.
Australia's business associations have twigged to the ALP agenda and have comprehended its implications. Hence their opposition.
If federal ALP policy were translated into legislation -- which, judging from the actions of the State ALP Government is on the cards if they are elected -- a dramatically worse, less competitive business environment would emerge.
Business groups say this would destroy the productivity-gain processes that have driven improved profits, increased worker incomes and reduced unemployment -- and they are correct.
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