The Australian Labor Party wants to plunge Australia into a depression and control all business.
Big claim?
Sure. But it's what will happen if they get elected later this year, if their recently released plans come into effect.
Their plans revolve around Australia's 2.2 million casual workers.
In a nutshell, Labor wants to create legislation that:
1. Enables the casual worker to ask to be put on as a permanent.
"Labor will assist regular, long-term casuals who want to request conversion to permanent employment. We will introduce legislation to support the inclusion of such provisions in awards and agreements..."
2. Allow the employer to reject request if unreasonable - but - employer doesn't decide if it is unreasonable!
"Employers can refuse the request if it is unreasonable for their business... In determining reasonableness, regard will be had for workplace realities such as the size and nature of the business - recognizing the greater capacity of larger businesses than small businesses to accommodate such requests."
3. Remove all private employer/employee contracts. (AWA - Australian Workplace Agreement)
"Labor will abolish legislated individual contracts - Australian Workplace Agreements (AWAs)"
4. Replace the AWAs with common law agreements and union agreements.
"but employees will be able to negotiate individual common law agreements and collective union and non-union and agreements."
5. Thus allowing unions to do the negotiating on behalf of an individual.
"Labor will restore the right of all working Australians to bargain collectively, by restoring the right of employees to be represented be a union in collective bargaining if they so choose."
6. Remove the "right of refusal" of the employer to negotiate with a union!
"...we will remove the present capacity of employers to refuse to negotiate with the union."
7. Re-instate the wide ranging powers of the Industrial Relations Commission (IRC) to enforce their new laws and oversee disputes created by the above 6 points.
"Labor will re-empower the independent umpire - the Australian Industrial Relations Commission - to adjudicate on intractable disputes when the parties cannot resolve them."
Their full proposal can be read on their website
here.
So what does it all mean?
It means to the employers... your casual staff member can ask to be made permanent. If you say "no", they can take you to the IRC and you will be forced to make them permanent. If you say "Yes" but want to negotiate privately, they can have a union representative do the negotiating for them and you cannot refuse that. If you do, off to the IRC. Effectively removing your say as an employer over how you hire/fire your staff.
Why is this Labor Party proposal bad?
Because employers don't want to be forced into a position whereby they have no power over their own hiring, firing and staff needs. So when a casual staff member gets close to being employed for the length of time that entitles them to ask for permanent work, the employer will get rid of them.
Labor's proposal will see an INCREASE in staff turnover like never before.
In their proposal they talk about the high rate of casual staff and try to blame this on the current government. It's not the current government that created the high casual workforce conditions.
The Labor Party created the high casual workforce conditions when they introduced their "Unfair Dismissal" policy. A policy which effectively prevented an employer from firing anyone. And which saw employers being taken to court if the employee thought they had been unfairly dismissed.
Here's the kind of thing that has happened under the Unfair Dismissal law: A "detailer" at a new-car car yard, hopped into the just serviced car, floored the accelerator spinning the wheels, did a couple of circuits around the building and workshop, entered the workshop area again, lost control of the car and smashed it into a workbench - squashing a fellow employee between the car and the workbench, resulting in the employee going to hospital to fix his crushed legs and undergo six months of rehabilitation.
The employer rightly dismissed the reckless employee, who subsequently took them to court for unfair dismissal... and WON $30,000 compensation!?
The fact the employee destroyed another person's property (car) didn't matter. The fact the employee destroyed company property didn't matter. The fact the employee injured another employee and put that employee in hospital didn't matter. Nor did it matter that the conditions of employment stated instant dismissal for property damage. All that mattered was that the employee had not been given a warning after the incident telling them it was wrong to do that. Without that warning, the dismissal was deemed unfair. What was determined should have happened was: employee causes damage as happened, is given warning that if it happens again they are out, and if it happened again THEN it would be okay to dismiss them.
It is this kind of lack-of-common-sense bullshit which has run rampant since the introduction of the Unfair Dismissal law. And why employers have opted to employ casual staff only.
The Labor Party proposal would see employers being forced to put their casual staff onto permanent status. And once permanent, those staff would be protected by the unfair dismissal law. Thus negating the very reason the employer has hired casuals in the first place.
This will result in employers getting rid of long term casuals - to avoid being forced to make them permanent and thus being put in a position which will prevent them from dismissing them. The "problem" of many casuals in the workforce will be worsened by their policy.
It could also result in some businesses staying small - to avoid employing casuals in the first place in case they can never get rid of them. As well as result in businesses only employing subcontractors or using staff from "temp" agencies.
Labor cites a casual employee's difficulty to get a home loan as one reason for their policy, "As a result they are considered a poor credit risk and find it very difficult to get home loans and other bank loans."
Fact is, the housing and banking sectors are reporting 70% home ownership - a percentage which has been fairly consistent for some forty odd years within Australia. So obviously
the "increase" in people moving to casual employment has NOT effected the rate of home ownership. So their reasoning is wrong.
If this home ownership number changes, it is due to interest rate changes and not the type of employment people undertake.
Labor's proposal will also
force increased costs onto businesses. With casuals the pay rate is higher - something the casuals enjoy (and which can see a casual make a full-time wage for less work and while getting a three day weekend every week). But with permanents, the employer will have to provide sick leave, holiday pay, and superannuation contributions. Many businesses hire casuals because they cannot afford all these extra monies. They will either be forced into lower profits and ultimately closure if forced to put their staff onto permanent status - or - they will get rid of staff nearing the time when they can ask to be made permanent, which would force the employer to put them on thanks to the legislation.
Labor will also legislate so women who have children can decide not to work full time anymore and to only be part time - regardless of how this effects the employer.
"Labor will assist parents wishing to return to work after parental leave on a part-time basis, by supporting measures in awards that facilitate such requests...This will enable the pursuit through awards and agreements of a right of parents to request a return to work on a part-time basis."
With the protection of unfair dismissal, the employer is thus forced to accept this and have an employee who only turns up part time. If the employer wants to maintain the same level of production they will now have to put on another part-timer, or casual who could force them into making them permanent at some point. To avoid this headache the employer can cut back production instead - making it impossible for the "mother" to even go back to full-time later because production doesn't warrant it.
With nothing to say about the employers "right" to have a reliable full-time staff member, and not be forced to spend more time and money hiring and training other people to fill a position just because someone only wants to go "part-time".
Labor claims their proposals are Fair and Flexible when in reality Labor's proposals are
NOT fair, NOT flexible in any way, and will create an even more un-secure workforce and higher staff turnovers.
It is only because of the flexibility of Australia's casual workforce that the economy has weathered the storm so well and we have seen such a housing boom - which filters back through the rest of the economy.
What Labor is proposing is a nail in the coffin of the Australian economy and is another small step closer to their socialist ideal - total control of all business.
I can see there might be some objection to what I have outlined as the outcome of Labor's proposal. So let me give you a case study of a real company that uses casuals...
The company is called "Clean Event" and they take care of the cleaning of sporting arenas and stadiums.
As a casual employee, you will work before the game (preparing the stadium for the crowd), during the game (emptying trash cans, picking up trash and keeping toilets clean), and after the game (cleaning the stadium from the trash, cleaning toilets, etc.). And you might be asked to do this on two stadiums within a city on the same week.
For your casual hourly rate you will earn $18.96 an hour! And only doing 25 hours a week (say Friday, Saturday and Sunday) will see you earn $474 a week ($24,648 a year) and have four days off per week. You will earn full-time money for only working half a week. It will be like having six months off each year.
Labor's proposal would see you become permanent. Your hourly rate will drop to $12 an hour (or even less, depending on which "award" the company opts to follow) but you will get sick leave (as if you needed any more time off than the four days a week you were getting) and holiday time and pay. To earn the same amount of money you had been earning, you will now have to work 39.5 hours instead of 25. And will have to do so over the standard five day work week. As the staff member you will be working more and getting less time off, for the same result. Your only plus is, if you don't go to work because you are sick you will still get paid.
A company like Clean Event cannot put on their casuals to permanents. What if there is only one stadium that week instead of two? What if the stadium is not used for three or four months because the "season" of that sport has ended? Tough luck to them. They will still have to pay their now-permanent staff even though they have no revenue coming in. (They, of course, will not do so, and will get rid of their formerly-loyal casuals who are close to going permanent.)
And this is what Labor calls fair and flexible.
Granted, not all companies are like Clean Event. But the same principles apply. Workers will have to work longer hours for the same money. Reducing their own flexibility and time with family.
Think of a restaurant. Or a cleaning business. Both of whose client numbers and profits can rise and fall with the state of the economy - as can any business'. Any downturn would see them put out of business while they try to pay wages of permanent staff they have no work for. And Labor wants to somehow still enable those staff to get paid after their plan leads to business' closure,
"Labor's plan to guarantee the payment of 100 per cent of employee entitlements in the event of a corporate insolvency".
The only people their proposal is fair for are them, because they get more control. As you can see, what Labor is proposing is a nail in the coffin of the Australian economy and is another small step closer to their socialist ideal - total control of all business.