See my letters below. FWA’s decision to suspend industrial action at around 2.00 am this morning will not solve the problem. Indeed Guidice himself said the suspension is of a temporary nature and the risk of a further lockout remains. How can another 21 days of “negotiations” solve the problem when unions are intransigent and when the legislation provides ample opportunities to exploit their power?
Des Moore
Fair Work defects highlighted
letter published in The Australian Financial Review, 31 October 2011
The shutdown by Qantas is an instructive illustration of the serious defects in the Fair Work Australia legislation and the interpretations by a tribunal dominated by union appointees.
If these defects are not changed in the near future there will be more shutdowns or reductions in employment by Australian businesses.
An official inquiry of some kind has been promised in the New Year but immediate action is required to amend the legislation so that management is recognised as having the primary responsibility for determining wages and conditions of employment.
The existence of a labour market that is regulated on the present basis is totally inappropriate in a modern economy that is subject to much greater competitive forces than in the past. This is not confined to international competition such as that faced by Qantas. There is also much greater competition within the Australian economy.
This competitive situation means that employers are unable to exploit workers and force a deterioration in their conditions. But it also provides unions with an opportunity to seek concessions from a leading company and, through the absurdly named “good faith bargaining” provisions and with the help of the tribunal, to obtain them by taking continued industrial action of one kind or another. Those “concessions”, which include unwarranted intrusion into management responsibilities, can then be obtained in other parts of the industry or the economy.
Des Moore
Institute for Private Enterprise
South Yarra Vic
Qantas grounding highlights deficient IR laws
letter published in The Australian, 31 October 2011
The shutdown by Qantas is an instructive illustration of the serious defects in the Fair Work Australia legislation and the interpretations by a tribunal dominated by union appointees. If these defects are not changed in the near future there will be more shutdowns or reductions in employment by Australian businesses.
Immediate action is required to amend the legislation so that management is recognised as having the primary responsibility for determining wages and conditions of employment.
The existence of a labour market that is regulated on the present basis is totally inappropriate in a modern economy that is subject to much greater competitive forces than in the past.
This is not confined to international competition such as that faced by Qantas. This competitive situation means that employers are unable to exploit workers and force a deterioration in their conditions. But it also provides unions with an opportunity to seek concessions from a leading company and, through the absurdly named “good faith bargaining” provisions and with the help of the tribunal, to obtain them by taking continued industrial action of one kind or another.
Those “concessions”, which include unwarranted intrusion into management responsibilities, can then be obtained in other parts of the industry or the economy.
Des Moore
Institute for Private Enterprise
South Yarra Vic