One defining but unaddressed business issue in this election is occupational health and safety (OHS) laws. In fact, it is a core issue upon which business can assess whether a Rudd government will be for or against business.
To win the election, the Labor Party needs substantial business support -- or at least neutralise business's fear of its union connections. History supports this. Bob Hawke was a master at carving out business backers with whom he worked, while Mark Latham was aggressively against business.
Kevin Rudd is displaying a near Hawke-like talent, although with a different style. His problem is that union marketing campaigns against Work Choices rely heavily on class-warfare demonisation of business. The negative side to this otherwise successful marketing technique has been the creation of significant business fears about unleashed union power under a Rudd government.
In response, Rudd has methodically moved to neutralise these concerns.
Rudd has sacked high-profile aggressive union leaders from the Labor Party. He has softened the worries of the big construction companies by agreeing to keep the construction industry reforms in their present form for at least two years. He has chased the independent contractor sector by substantially adopting John Howard's policy of keeping contractors out of industrial laws. He is retaining bans on strikes during agreement periods and is limiting union right of entry.
Differences between Howard and Rudd on workplace issues remain, but they have narrowed. Rudd may be looking impressive but business's concern is that, in government, Labor's factional deals will return power to unions. This is Howard's accusation. For business, it is hard to know the truth.
However, work safety laws provide a real and immediate test for Rudd and an indicator for business on several levels. Recently, the Labor Party released its OHS policy. It is committed to a process of national harmonisation of state laws, which is good and much needed. But the policy is deathly quiet on the principles of OHS laws that a Rudd Labor government would follow.
This is where Labor factionalism collides with Rudd's political pragmatism. On most policy principles Rudd has firmly declared his position as leader, but on OHS he is uncommitted.
The policy extremes are starkly demonstrated when comparing NSW with Victorian OHS laws. One policy is built on a near manic distrust of business, the other on a partnership with business.
NSW assumes business is bad and automatically applies guilt to employers under OHS criminal law -- with no access to normal courts or rights of appeal. On the other hand, employees have fair treatment, with a proper presumption of innocence. Unions conduct OHS prosecutions and invade worksites using OHS excuses without legal restraint -- a mockery of Labor's commitment to equity and justice.
Victoria reformed its laws under the Bracks Labor government. Presumption of innocence applies to employers and employees alike; prosecutions by the state proceed in normal criminal courts with full rights of appeal; and unions have the right to enter worksites for OHS purposes, but with significant legal constraint.
There is no middle path between these models. The other states mostly follow Victoria, whose model is designed on internationally accepted principles. NSW breaches international principles. For national OHS harmonisation to succeed, one model will have to prevail.
NSW is a mess. The state government tried to reform its laws this year but unions and Labor factions revolted. Consequently, NSW blocked much-needed national harmonisation.
Here is the indicator for business. Rudd's inertia on declaring national OHS policy principles may indicate his capture by Labor factionalism. A Rudd government might operate like the NSW lemma government, which doesn't move without factional and union blessing.
One outcome is grinding indecision. The other is that Rudd may be forced to adopt NSW-style laws nationally. Every employer would have the presumption of guilt applied to them. It would mean a national government that allowed unions to turn their marketing mantra of employer hate into a policy and behavioural reality.
While Rudd puts Labor Party factional management above the declaration of clear OHS policy principles, business's pre-election fears have cause to exist.
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