Bill Shorten is presented with an excellent opportunity to prove himself to be a minister who is not dictated to by the unions. The Australian workplace relations system requires substantial reform and he may be the man to do it.
It is sometimes said that a minister with inside experience can bring unexpected and lasting change to a portfolio. A good ''insider'' minister will use knowledge and credibility to push change beyond expected boundaries.
Shorten is now presented with such an opportunity. He has been a prominent union official rising in 2001 to the job of national secretary of Australia's oldest union, The Australian Workers Union. He also developed a reputation of being accessible to business.
It is clear that the Australian workplace relations system is plagued by problems. Reform in a number of areas is required. A failure by Shorten to introduce changes will damage Australian workers and the economy. He should take five key reform steps as a matter of urgency. All require an ability to stand up to the unions.
First, allow individual flexibility arrangements (IFAs) to operate as intended by removing the capacity of unions to constrain their use. A common stipulation found in agreements is that the union has a right to be consulted about or even approve an IFA.
IFAs bind individuals; unions do not have a role.
Second, transfer the regulation of independent contracting from workplace relations laws to commercial law. Many Australians prefer to work this way because of the freedom it affords them. The ACTU is running a campaign to load more workplace relations regulation into the oversight of contracting.
Third, withdraw the bill to abolish the Australian Building and Construction Commissioner. As a former AWU secretary, Shorten will be aware that the main winner from the bill is the militant Construction, Forestry, Mining and Energy Union.
Fourth, restore right of entry for union officials to workplaces to the 2007 election policy position. The right to enter should be based on members of a union working at a workplace. At present, entry can be achieved on the pretext of people in the workplace being eligible to join a union.
Fifth, revise bargaining rules to avoid protracted negotiations and industrial action. Australia's reputation is suffering through a re-emergence of union militancy combined with a complex and inflexible workplace relations system. Shorten portrays himself as someone who understands business challenges as well as union factions.
He now has a chance to deliver a system suited to a multifaceted economy operating in a competitive world. A system reflecting union dogma based in the 1970s will not grow jobs and investment.
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