Little room for big IR changes for now

Comments on Michael Stutchbury “Gillard’s plan will shackle economy”, 3/09/2009, http://blogs.theaustralian.news.com.au/currentaccount/index.php/theaustralian/comments/gillards_plan_will_shackle_economy/

The Rudd government got a mandate to rewrite IR laws in Australia. It seems, however, that the Gillard swing of IR has gone a little too far and will place some unnecessary constraints on the economy and employers, even though the totality of Gillard’s rewriting of the IR laws may be overwhelmingly positive for the nation as a whole.

Besides its problems in the so called award modernization, the complete abolition of individual agreements is unnecessary and will be unproductive. There should be flexibility in agreements between employers and employees. There is a place for collective bargaining, if that is employees want. There is also a place for individual agreements too, if that is also want some employees want.

The important point is employees should have choices in selecting the forms of agreements with their employers and should not be forced against their own interests and wills to do one or another forms of agreements. Whether it is employers or unions, they should not have the power to force employees to make and accept an agreement against their will and interest. IR laws should provide and protect choices for employees and also mindful of their impact on fairness to employees and employers alike, productivity and efficiency.

Politically and timing-wise, however, it is all but a little too late to make big changes to Gillard’s IR laws for this term of the Rudd government irrespective they are good or bad. Any changes are likely to be small and piecemeal in nature. People have to live with the consequences for a while. It is likely to have another round of IR changes after the next federal election, no matter which political parties will be in government.

Businesses and employers need to focus their energy and attention to the government after the next election to make the IR laws more efficient, productive and fair at the same time. The opportunities will be there and don’t let them to slip away.