ENVIRONMENT

Banging the IR drum

MCA taking aim at union powers.

Noel Dyson

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The MCA has released a policy paper Australia’s workplace relations framework: The case for reform that identifies the mining industry’s priorities for change.

Looking at the wish list the MCA puts up it could be argued that the bulk of the issues are aimed at unions.

The priority issues:

Removing the availability of protected industrial action over business decisions and ensuring enterprise agreements deal with direct employment matters;

Refocusing the Fair Work Act’s “adverse action” provisions so they do not act as unreasonable barriers to business decision making and performance management processes;

Introducing more balanced workplace right of entry rules; 

Reforming greenfields agreements, including introducing “life of project” agreements so the workplace relations system helps get major new projects off the ground; and

Letting employees above a high income threshold choose between being covered by enterprise agreements or individual employment agreements.

MCA deputy chief executive David Byers said Australia’s economy, workplaces and jobs had changed over recent years with rapid technological advances having major implications for the world of work.

“Our workplace relations framework needs to allow employers and employees to maximise the opportunities these changes will bring, rather than acting as a barrier to the improved competitiveness and productivity and the new investment needed to boost jobs and living standards,” he said.

Miners have long lamented the loss of the old individual contracts system that was enshrined under the Howard government’s Work Choices legislation.

Those individual contracts gave employers and employees the ability to negotiate a great deal of flexibility into their workplace contracts.

When Kevin Rudd took power in 2007 Labor set about unwinding all of that and instead enshrining a more prescriptive enterprise bargaining process as the only way of setting workplace conditions. 

Enterprise bargaining also brought the unions back into the equation. Under the individual contracts system they were being increasingly cut out of the process.

In the dying days of the Gillard government unions gained even more power, particularly in the area of right of entry.

“Ultimately Australia’s workplace relations system needs to evolve to a wider set of agreement options that allows the potential of professional and respectful working relationships to be fully realised,” Byers said.

“As debate on how to best achieve this level of flexibility in workplace arrangements evolves the MCA is setting out short-term priorities for reform that are consistent with this direction and realistic ambition.

“The mining industry already provides some of Australia’s best paid and most highly skilled jobs for blue collar and with collar workers alike.

“The average mining employee earns $140,000 a year, making mining the highest paying industry in Australia – and mining has had the fastest wages growth of any industry over the past decade.

“With the mining boom moving from the investment phase to the production phase Australia will reap the economic benefits of investments the industry has already made for years to come.

“But we now need to ensure our workplace relations system does not create impediments to new investment in an environment where mining companies must compete harder to finance the new projects that will create the jobs and growth of the future.”

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