Fair Work laws risk dark days: ex-BHP boss
19:50 AEST Mon Sep 5 2011
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The
federal government is under increasing pressure to tweak its industrial
relations reforms, with the former head of mining giant BHP Billiton
warning of a return to "dark" economic days if it doesn't.
Labor's
Fair Work Act has come under fire in recent weeks, drawing criticism
from Reserve Bank governor Glenn Stevens, the Productivity Commission
and the broader business community.Former BHP Billiton boss Don Argus wasn't pulling any punches about Labor's reforms, saying he feared Labor had opted for the most politically expedient outcomes when it came to industrial relations and tax.
"I worry that future generations of Australians will have to contend with the results of lazy reform," Mr Argus said on Monday.
"Unfortunately, recent developments suggest to me that we are actually seeing a regression in labour market flexibility that could undermine the future living standards of Australians."
Some employers were forced to "go backwards" in terms of flexibility despite the objectives of the Fair Work Act for bargaining to increase flexibility, Mr Argus said.
"Labour market flexibility is perhaps the most important determinant of productivity, and if we lose our focus on productivity objectives the Australian economy will suffer, investment capital will go elsewhere and we will see a return to the dark days of the 70s and our competitive and comparative advantage will be squandered."
An Australian Industry Group survey of 250 member companies found most wanted the return of individual contracts and flexible workplace deals.
But Workplace Relations Minister Chris Evans regards individual contracts as among the worst elements of the Howard government's Work Choices policy, which was scrapped in favour of the Fair Work Act.
"Individual contracts were the mechanism used to strip away pay and conditions from Australians," Senator Evans said.
"Labor will not accept a return to a system which strips workers of wages and conditions."
Ai Group chief executive Heather Ridout called on the government to address problems with the act rather than argue it is working well, calling on the coalition to find common ground on industrial issues.
The idea the act represented the perfect balance between all competing interests and shouldn't be altered was not sustainable, Ms Ridout said.
"It is common for new, major pieces of legislation to lead to unintended consequences and unforeseen issues and the Fair Work Act is no exception," Ms Ridout told a conference in Sydney on Monday.
"We are not advocating a wholesale revamping of the legislation but some sensible changes need to be made at removing barriers to productivity growth."
The new laws had not delivered increased productivity or flexibility to employers and had introduced barriers to productivity growth and labour flexibility, which needed to be addressed, Ms Ridout said.
AiG called on the government to announce a timetable and process for reviewing the act early next year so necessary amendments can be made as soon as possible.
The coalition called on Workplace Relations Minister Chris Evans to bring the review forward and explain his remark that the review would be limited to the objectives set out in the legislation.
Senator Evans said he respected Ms Ridout and AiG's contribution to the economic debate and had always been prepared to participate in an evidence-based debate about Australia's workplace relations system.
The minister was not available for comment on Mr Argus' comments or the coalition's demand for an explanation on the terms of the review.
© AAP 2011
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