The end of Australia Economy

Below is a report of the new IR law. This does not come at a worst time especially when Australia is heading for a recession... unions are well known for people workers benefit before economy. Often the people in unions do not consider other factor when striking for better wages. and what is worse they might cause the economy to go crashing through higher wage demand... I wonder... if in good times they demand higher wage.. then if in bad times will UNIONs sacrifice to bring wages down to make the economy more competitive.

I suppose unions are a double edged sword, keeping the right balance is always the key





Labor swings balance to workers with new IR laws

Brad Norington | November 26, 2008
Article from: The Australian

UNION officials will win the right to enter workplaces around the nation, including sites where they have no members, as part of sweeping changes to industrial laws proposed by the Rudd Government.

As the Government celebrated one year in office, Julia Gillard yesterday unveiled Labor's much-anticipated legislation to abolish the Coalition's Work Choices laws and create a new regime based on collective bargaining.

Describing it as a new era of industrial relations, the Acting Prime Minister and Workplace Relations Minister yesterday introduced into parliament a 600-page bill that significantly tilts the balance of power back to workers and unions.

In rewriting the nation's industrial relations laws from scratch, Ms Gillard's legislation goes much further than Labor promised at the election by allowing union entry to worksites provided people perform work on the premises and are entitled to be represented by the union concerned.

The package, which demolishes John Howard's Work Choices laws, introduced in 2006, also relaxes rules on outlawing strike pay, allows employer lockouts only in response to strike action and gives the Workplace Minister considerable powers to terminate industrial action or give directions in bargaining disputes.

Secret ballots before legally protected strike action will also require only 26 per cent support to gain approval because only half of eligible employees at a worksite will be required to take part in the ballot.

While the ACTU backed the new negotiating rights, the Australian Chamber of Commerce and Industry welcomed some aspects of the bill and accepted the "reality" that voters had endorsed change at the election.

But the chamber's chief executive, Peter Anderson, said that new rights and compliance measures could add costs for employers, including non-unionised sites and among small businesses.

Mr Anderson said he was concerned that new arbitration powers proposed for Labor's umpire, Fair Work Australia, would lead to pay rises spreading to low paid and other workers without regard for productivity or economic circumstances.

A significant concern for Mr Anderson is that - despite Ms Gillard's denials - special bargaining provisions allowed for the low paid and "single interest employers" could lead to pattern bargaining of wage claims across entire industries.

Ms Gillard yesterday issued a warning to the Coalition, saying it was duty-bound to pass the legislation in the Senate because of the election mandate Labor achieved at the election for its policy. "This is a new era of industrial relations that gets the balance right, but what's more important is that the Australian electorate has endorsed this system," she said.

Ms Gillard said Labor's Fair Work bill, which will pass in the House of Representatives next week before being referred to a Senate committee, would "sweep away" Work Choices.

She outlined to parliament a giant piece of legislation that bases Australia's industrial relations system on collective bargaining with the powers of a strong umpire, renamed Fair Work Australia, to help settle disputes and impose wage settlements when low-paid workers cannot gain a result from bargaining, and for all workers when employers persistently refuse to co-operate.

Unfair dismissal rights are to be restored for all workers, but small business is given the concession of a 12-month probation period for employees before claims can be made. For other firms, the no-claims period is to be six months.

Work Choices effectively eliminated most unfair dismissal claims by abolishing them for any business with fewer than 100 staff.
Dismissing claims from some employers that Labor's bargaining regime was too heavily weighted in support of unions, Ms Gillard insisted that "at the end of the day it is up to a majority in a workplace".

The Workplace Relations Minister said unions should have a right to enter worksites based on having members, or eligible members.

But union officials would still be required to gain an entry permit and give employers 24 hours' notice.

They also could not legally disrupt work, meeting for "discussions" during breaks and at a venue chosen by the employer.

The Australian Industry Group yesterday rated Labor's bill as "workable" after protracted negotiations in which it believes concessions were won for employers.

AIG chief executive Heather Ridout said: "I think employers cannot have everything they want out of this bill. The Government has listened hard to employers, they've mitigated a lot of the big risks around content of agreements."

The Australian Mines and Metals Association was contemptuous of the legislation, with chief executive Steve Knott calling it "a return to the 1993 Keating era".

Mr Knott is displeased that unions could once again enter non-union sites in the Pilbara and sign up workers currently on individual contracts.

Ms Gillard yesterday challenged Opposition Leader Malcolm Turnbull to declare his hand on the bill and pass it.

"Decision day is coming for the Leader of the Opposition. He will have to decide what he believes on individual statutory employment agreements," she said.

Mr Turnbull said the Opposition would not oppose the bill in the House of Representatives but would subject it to a Senate inquiry and propose amendments.