Showing posts with label ACTU. Show all posts
Showing posts with label ACTU. Show all posts

Saturday, August 21, 2021

Did the Accord Cause Australian Neoliberalism?

Bob Hawke and Paul Keating key architects of Australian Neoliberalism

Lisbeth Latham

Reading the publications of the Australian far-left has seen a sharp rise in the discussion of the Prices and Wages Accord and attempts to relate that experience to the contemporary Australian union movement’s attempts to respond to the double crisis of the COVID pandemic and the associated financial crisis[1]. While there is much to be criticised in the Accord experience - these left critiques tend to see the Accord as a singular process, rather than the complex dynamic interaction with the unfolding not only of the Accord itself but the broader dynamics of Australian political and economic life in the period of the 1980s and 1990s. Many of these left critiques oversimplify and overplay the level of the intentionality of the leaderships of the labour movement in the implementation of the Accord and posit it as the key mechanism by which neoliberalism was established within Australian society. In this article, I aim to outline: 
  • the circumstances that the labour movement found itself in that lead to the Accord project; 
  • the changing character of the Accord over the period of its implementation; 
  • the internal processes of control and discipline within the labour movement to enable the Accord to be implemented and maintained and the impact of these on democracy within the labour movement; 
  • the impact of the Accord on working people; and 
  • the impact of the Accord experience on the capacity of the Union movement to organise and respond to attacks from the state and capital.
Inflation and unemployment crisis
In the early 1980s the Australian economy, like other advanced capitalist economies, entered into recession. The Fraser government responded to the recession by seeking to impose wage restraint by using the centralised wage-fixing system to cut real wages. In 1981, in response, unions, most notably the Amalgamated Metal Workers and Shipwrights Union (AMWSU)[2], launched a campaign to achieve a 35-hour week with no loss in pay - in order to maintain workers’ buying power and to create jobs by reducing working hours. This campaign was partially successful, the AMWSU, operating outside the arbitration system, won a pay rise of $20 per week and a reduction in the working week to 38-hours per week in 1981, with a further pay rise to be paid in the second increase of $14 in 1982, based on projected inflation for the next six months. These gains were based on a basis of the union agreeing to no further claims for twelve months[3].

In the wake of this victory, the crisis in the Australian economy deepened as the global economic crisis intensified driving down demand for consumer and capital goods. This downturn had already begun to be felt in Australia before the wage campaign, but the AMWSU had been protected from it initially due to residual demand for skilled workers.

In response to the crisis, manufacturing employers started to rapidly shed jobs, and about 90,000 workers were sacked. In the face of this assault, the AMWSU’s leaders abided by the “no-strike” agreements and did not take industrial action to try to protect jobs. At some shops, workers tried to secure jobs by agreeing to reduce their hours to a four-day week at four days’ wages[4].

This experience is now raised by the right as demonstrating the inevitable consequence of workers achieving wage rises [5]. Whilst, that conclusion is deeply wrong, and a fundamental misreading of the situation, this experience gave greater weight to the position adopted by the ALP in 1979 supporting the creation of an agreement with the union movement aimed at maintaining living standards that avoid either a wage breakout or hyperinflation[6]. The impetus for this position within the ALP had come from the period of hyperinflation during the Whitlam government (1972-1975). This was particularly the case within the AMWSU and other unions where members of the Communist Party of Australia were part of the leadership[7].

Stated objectives of the Accord
The initial objective of the Accord was to reduce unemployment and to hold inflation in check. This would be achieved by limiting inflation by restraining wages, while at the same time improving the standard of living of working people by boosting the “social wage” via expansion of government spending particularly around healthcare (Medicare), increased family payments and childcare. A major flaw of the Accord process was that whilst the system had mechanisms that effectively restrained wages, via a centralised wage-fixing system, there were no such restraints on capital regarding the setting of prices, leaving the system open to companies covering any rise in their costs via increasing prices, or just deciding to do so to boost profits. This limitation meant that understandably groups of workers, if not whole unions, were motivated to break out of the Accord in order to defend wages[8]

Control and discipline
The process of entering the Accord sparked immediate resistance within the labour movement. Most notably this was reflected in individual far-left individuals and organisations opposing the proposal. The Socialist Party of Australia (SPA)[9], which had a number of members who were elected officials in unions, most notably the Building Workers Industrial Union{10], Waterside Workers Federation, Seamen’s Union, and the Firemen and Deckhands' Union of New South Wales[11], publicly opposed the Accord and sought to direct their members who were union officials to oppose the Accord. These members revolted against the direction, arguing that it represented an attack on union democracy, splitting away to form the Association of Communist Unity (while some officials were expelled by the SPA for their refusal to follow party discipline, others simply resigned)12. While there are a range of reasons for this refusal to abide by party discipline, one factor was undoubtedly the reliance of these officials to their collaboration and alliances with officials from the CPA and the Labor left who supported the Accord. Brown has argued that these internal processes of control and discipline impacted on individual officials who had second thoughts regarding the Accord who could expect to be disendorsed and excluded from internal tickets if they did not tow the pro-Accord line[13].

Efforts to tie the movement to the Accord only intensified as the process continued. The Accord was posed as a necessary protection against the threat to the movement by the “new right” - in the form of the members of the Institute of Public Affairs and the HR Nicholls Society. This meant that those unions which sought to break from the Accord, were not just seen as revolting from the Accord, but risking the protection that the Accord was seen as offering the movement. So those unions that did revolt, such as the Confectionary workers[14], Builders Labourers Federation[15], and the Airline Pilots, not only faced aggressive and hostile employers, which included deregistration processes, strike-breaking, and the initiation of civil damages suits, but also were isolated, vilified, and raided by their “comrades” in rest of the union movement, including the Hawke Labour Government. Most notable was the deregistration of the BLF in the ACT, in NSW, and in Victoria[16].

How the Accord changed over the course of the process 
As much as it is tempting to discuss the Accord as a singular process, it changed considerably over the course of the 13 years it was in effect - with eight different Accords negotiated (although Accord Mark VIII was never actually implemented)[17]. Whilst the early Accords had wage-fixing aimed at addressing specific macroeconomic issues, such as inflation and unemployment, Accord Mark III, in 1987, introduced the concept of two-tier wage rises - with all workers automatically receiving the first tier of wage increases, and the second tier only being received subject to improvements in structural efficiency[18]. This shift both resulted in extremely uneven timing of when the second wage-rise was received, it marked a significant shift in the conceptualisation of the basis on which wage increases would occur, that they should be tied to demonstrated productivity increases beginning a process of Award restructuring.

As the Accord proceeded, a major justification for the need to maintain the Accord process, was to both hold off the introduction of enterprise bargaining (which was seen as a project of the new right) and to maintain the ALP government to prevent anti-union attacks that had been implemented by conservative governments globally – Peetz as argued that one of the major achievements of the Accord was precisely this delay. However, with the introduction of the Accord Mark VII in 1991, enterprise bargaining, that is negotiations on a company by company basis, rather than industry-wide arbitration and conciliation, was introduced[19]. While bargaining had always occurred within the Australian Industrial Relations system this process had always had a complex and integral relationship with the centralised systems around the Award System. The 1991 process, enshrined in the Industrial Relations Act, began to unravel this relationship. A process which has been deepened with the 1996 Workplace Relations Act, 2005 WorkChoices Act, and the 2008 Fair Work Act. Historically improvements achieved by militant unions in their better organised and more industrially strategic “hot shops”, most notably the AMWU, at the enterprise level could be leveraged and incorporated into the Awards via the state and federal industrial commissions. Enterprise bargaining began a process of severing this connection - which meant that militant unions and their members could only bargain for themselves in their local workplaces (albeit they have attempted to work around this via pattern bargaining which is now legally banned), rather than their actions to improve conditions serving as pacesetters for the conditions of all workers reinforcing individualism and breaking social solidarity between workers, which is such a central drive of the neoliberal project[20]. This process led to a tiering of working conditions based on the extent to which workers had access to enterprise bargaining, with those works reliant on the awards not only falling substantially behind on wages but in their broader working conditions through a combination of the successive award stripping by the Howard government and the achievements by workers and their unions within the EA system in adding and improving conditions.

Peetz has argued that the Accord process provided important protections to Australian unions in delaying conservative governments and their full-frontal assault on unions in Australia similar to what occurred in New Zealand as a consequence of the Bolger government’s attacks[21]. It is also arguable that the Accord process rather than protecting unions instead left them more vulnerable to the attacks when they came[22]. Whilst comparisons can be made to New Zealand and the devastation wreaked on the labour movement. A counter comparison can be made to the experience of the French labour movement which via ongoing resistance, including splits within the labour movement over responding to attacks by employers and governments[23]. This response meant that while the French movement, like the working class globally over the past forty years, suffered defeats in the wake of government attacks it was able to limit these defeats. In raising the example of France it is not to say that that course was necessarily open to the Australian movement, or would have been easy to pursue if it was but to make it clear that there are and were always multiple responses to challenges confronting movements, and that accepting one as the only alternative path to disaster can unnecessarily close off other alternative paths which may pose the possibility of a more positive outcome.

Over the course of the Accord, it delivered less and less on its promised objectives. Whilst there was an expansion in the social wage, real wages declined[24]. This decline was not simply problematic due to the stress it put on households but because real wages only failed to decline further as a consequence of increased productivity, i.e. as a consequence of work intensification and the reduction in broader working conditions - which were at the core of Accord Mark III and all subsequent Accords. This normalisation of wage rises to increases to productivity rather than maintaining and improving living standards is now embedded in what is left of Australia’s wage-fixing system under the Fair Work Act[25].

These shifts have resulted in a sharp and ongoing shift in the wages share of GDP, which has helped to drive up company profits. While this shift began under the Accord, it is important to recognise that this shift has occurred across advanced capitalist countries as corporations have sought to overcome declining growth and maximise their share of income[26].

Whilst the adoption of the Accord was contested within the labour movement, and as outlined above it was not a singular experience, its character changed over time. Contrary to some claims within the left, the early phase of the Accord, whilst deeply corporatist, was not neoliberal, in particular, the expansion of the social wage was not a neoliberal project, objectives which could be seen as neoliberal objectives came later in the life of the Accord[27]. Indeed, whilst the solution via collaboration was a break with the historic approaches of many of the communist lead unions, it was not a sharp break from that of many unions, particularly those associated with the right-wing of the ALP and formations to its right, such as the Democratic Labour Party[28]. These more conservative unions had long relied on “friendly” relationships with employers and the state in order to hold their own in demarcation disputes and contests with left unions. Indeed, Peetz argues that it was the ending of these relationships which were the driver of the decline in union membership and power rather than the Accord. Unlike the claims of some on the left, such collaboration is not inherently neoliberal, if anything the experience of neoliberalism globally has been an intensification of hostilities by capital against organised labour. The primary driver of the neoliberal transformation of Australian society was the Hawke and Keating Labor governments[29]. The initial incorporation of neoliberal aspects into the Accord was justified as a necessary defensive response rather than the direct intention of those who proposed and advocated the Accord and its maintenance. While this argument may have been cynical on the part of some of its advocates, it also reflects the extent to which direct advocacy of neoliberalism would have been resisted, even if the movement, like the rest of society, having absorbed neoliberal ideas as a consequence of the hegemonic position neoliberalism[30]. 
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Footnotes
1  Glanz, D. 2020 ‘Morrison’s ‘Accord 2.0’ talks are a trap for the unions’, Solidarity, [online document] accessed 23 May 2021. https://www.solidarity.net.au/unions/morrisons-accord-2-0-talks-are-a-trap-for-the-unions/.
    O’Shea, L. 2020 ‘Beware union leaders bearing deals’, Red Flag, [online document] accessed 23 May 2021. https://redflag.org.au/node/7224.
    Boyle, P. 2020 ‘Reject the Coalition’s Accord-style JobMaker’, Green Left Weekly, [online document] accessed 23 May 2021. https://www.greenleft.org.au/content/reject-coalitions-accord-style-jobmaker.
    Knobloch, B (18 October 2020) ‘How Australia’s Labor Movement Helped Build Neoliberalism’, Jacobin, [online document] accessed 23 May 2021. https://www.jacobinmag.com/2020/10/australia-labor-party-neoliberalism-accord
2  Now the Metals Division of the Australian Manufacturing Workers Union 
    Smith, B. A. 2001a ‘Amalgamated Metal Workers & Shipwrights Union (1976 - 1983)’, Australian Trade Union Archives, [online document] accessed 16 May 2021. https://www.atua.org.au/biogs/ALE0053b.htm.
3  Latham, C. ‘Wage rises don't mean job losses’, Green Left Weekly, [online document] accessed 23 May 2021. https://www.greenleft.org.au/content/wage-rises-dont-mean-job-losses.
    Wright, C. F. 2014 ‘The Prices and Incomes Accord: Its significance, impact and legacy’, Journal of Industrial Relations, 56(2):264-272. 2014
4  Wright ibid. 
    Latham ibid.
5  Hewett, J. 2009 ‘Lost lessons of the 100,000 'dead men'’, news.com.au, [online document] accessed 23 May 2021. https://www.news.com.au/news/lost-lessons-of-the-100000-dead-men/news-story/81ef1b0ee808c0db147562597741559b?sv=927bc14851e593f17f7ed5b4ea4305c9.
6  Latham op cit.
7  Strauss, J. 2013 ‘Opposition to the Accord as a social contract’, Labour History, 105:47-62.
8  Wright op cit.
    Stilwell, F. 1991 ‘Wages policy and the Accord’, Journal of Australian Political Economy, 28:27-53.
9  Now the Communist Party of Australia, but distinct from the original CPA which was founded in 1920 and dissolved in 1991
10 Now a major component of the Construction and General Division of the Construction, Forestry, Mining, Maritime, and Energy Union (CFMMEU). 
     Smith, B. A. 2001b ‘Building Workers Industrial Union of Australia (ii) (1962 - 1991)’, Australian Trade Union Archives, [online document] accessed 16 May 2021. https://www.atua.org.au/biogs/ALE0316b.htm.
   Holland, P. and Jerrard, M. 2018 ‘Unions have a history of merging – that’s why the new ‘super union’ makes sense’, The Conversation, [online document] accessed 4 June 2021. https://theconversation.com/unions-have-a-history-of-merging-thats-why-the-new-super-union-makes-sense-93077.
11 These unions amalgamated to form the Maritime Union of Australia and are now the Maritime Division of the CFMMEU. 
     Smith, B. A. 2001c ‘Maritime Union of Australia (1993 - )’, Australian Trade Union Archives, [online document] accessed 16 May 2021. https://www.atua.org.au/biogs/ALE0595b.htm.
     Holland and Jerrard ibid.
12 Bentley, S. 2003 ‘The origins and politics of MUSAA’, Green Left Weekly, [online document] accessed 29 May 2021. https://www.greenleft.org.au/content/origins-and-politics-musaa.
     Strauss op cit.
13 Brown, T. 2004 ‘Silencing dissent to win consent: National training reform in the Accord years’, Labour & Industry, 15(1):33-51.
14 Now part of the Food and Confectionary Division of the AMWU. 
     Smith, B. A. 2001d ) ‘Confectionery Workers Union of Australia (1986 - 1992)’, Australian Trade Union Archives, [online document] accessed 16 May 2021. https://www.atua.org.au/biogs/ALE0379b.htm.
15 Now part of the Construction and General Division of the CFMMEU. 
     Smith, B. A. 2001e ‘Australian Building Construction Employees Builders Labourers Federation (ii) (1976 - 1986)’, Australian Trade Union Archives, [online document] accessed 16 May 2021. https://www.atua.org.au/biogs/ALE0134b.htm;
     Holland and Jerrard op cit.
16 Strauss op cit.
17 Stilwell op cit
     Wright op cit.
     Strauss op cit.
18 Stilwell op cit.
19 Peetz, D. 1998 Unions in a contrary world: The future of the Australian trade union movement, Cambridge University Press: Melbourne.
20 Buchanan, J. Oliver, D. and Briggs C. 2014 ‘Solidarity reconstructed: The impact of the Accord on relations within the Australian union movement’, Journal of Industrial Relations, 56(2):288–307.
21 Peetz op cit.
22 Ewer, P, Hampson, I, Lloyd, C, Rainford, J, Rix, S and Smith, M (1991) Politics and the Accord, Pluto Press: Leichhardt.
23 In 1988, the leadership of Confédération française démocratique du travail (CFDT - French Democratic Confederation of Labour) expelled workplace unions from the Confederation’s federations in health, post, and telecommunications over a series of wildcat strikes that the workplace unions had supported. These expelled workplace unions formed a new federation within Post France and France Telecom, the Solidarity, Unity Democracy PTT - which played a leading role in subsequent mass mobilisations in defence of employment conditions, pensions, and workplace rights within French society over the three decades. Their success led to further splits by the left-wing of CFDT particularly in transport, health, and government services. These make up the core of the Trade Union Solidaires which is one of the most militant and left-wing confederations within the French labour movement.  
     Damesin R. and Denis, J.-M. (2005) ‘SUD trade unions: The new organisations trying to conquer the French trade union scene’, Capital & Class, 86:17-37.
     Connolly, H. 2012 ‘Union renewal in France and Hyman’s universal dualism’, Capital & Class, 36(1):117–134.
24 Stilwell op cit.
     Wright op cit.
25 McKenzie, M. 2018 ‘The Erosion of Minimum Wage Policy in Australia and Labour’s Shrinking Share of Total Income’, Journal of Australian Political Economy, 81:52-77.
26 Lapavitsas, C. Kaltenbrunner, A. Labrinidis, G. Lindo, D. Meadway, J. Michell, J. Painceira, J. P. Pires, E. Powell, J. Stenfors, A. Teles, N. and Vatikotis, L. 2012 Crisis in the Eurozone, Verso: London.
27 Humprys, E. 2018 How Labour Built Neoliberalism: Australia’s Accord, the Labour Movement and the Neoliberal Project, Brill: Leiden.
     Stilwell op cit.
28 Peetz op cit.
     Peetz, D. and Australian National University, Centre for Economic Policy Research 1997 The Accord, compulsory unionism and the paradigm shift in Australian union membership, Centre for Economic Policy Research, Australian National University Canberra.
29 Peetz op cit.
     Hillier, B. 2020 ‘Sally McManus is a neoliberal’, Red Flag, [online document] accessed 23 May 2021. https://redflag.org.au/node/7340
     Harvey, D. 2005 A Brief History of Neoliberalism, Oxford University Press: Oxford.
     Quiggin, J. 1999 ‘Globalisation, neoliberalism and inequality in Australia’, The Economic and Labour Relations Review, 10(2):240—59.
30 Mirowski, P (2013) Never let a serious crisis go to waste: How neoliberalism survived the financial meltdown, Verso: London.

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Thursday, September 17, 2020

Keynesianism Is No long-Term Solution To The Economic Crisis

Lisbeth Latham

The current COVID pandemic has caused massive financial damage to the global economy, damage which has been felt viscerally by working people in the form of dramatically reduced incomes and the loss of millions of jobs. As we progress through the pandemic and look hopefully towards its ending and eventual recovery, minds have begun to look towards what the eventual rebuilding of the economy might look like. Whilst capital, and its representatives in governments, are already looking towards an, even more, deregulated labour market and a general deepening of the neoliberal model, on the other hand, alternative models for recovery are being forward, most particularly that proposed the by the Australian Council of Trade Unions which draws its inspiration from the post-war recovery globally and most particularly in Australia post the Second World War. While this example has understandable appeal, it is well known, it refers to a period of massive and sustained economic growth. It is a deeply problematic model for recovery to the current period of crisis as it fails to understand the roots of the recovery post Second World War which will not be easily replicated but more importantly fails to recognise the broader reality of the global climate crisis that also confronts us, and which should mean we are wary of productivist solutions to this crisis.


The current moment of twin crises of the COVID pandemic and climate change makes it both opportune and vital that progressive forces put forward a vision of a potential course of action. A course which not only facilitates economic recovery but also addresses key questions economic justice. Specifically, this means charting both a course to enable the global transitioning of the economy away from its reliance on fossil fuels and build ever-higher profits. At the same time, this process must also focus on reducing economic inequality both intra- and internationally.

In the wake of the war, the Australian government engaged in a large scale and ongoing social spending which included the building of infrastructure, such as the Snowy River Scheme and helped the Australian economy and society for an extended period of prosperity and helped the Australian economy and society for an extended period of prosperity. This spending and development played a significant part in creating employment in a context which risked mass unemployment. With demobilising armed forces and the waves of refugees that found homes in Australia in the wake of mass displacement caused by the Second World War and reconfiguring of post-war Europe. However, while it is undoubtedly the case that significant government spending was a major factor in this growth; it is not the only story.

It is important to remember that the post-war boom, which was a global phenomenon, occurred in the wake both the destruction and stagnation caused by the great depression and then shattering of the global economy and destruction of capital goods which occurred during the Second World War. This was a period of extended destruction of capital, which resulted in mass immiseration, destruction, and loss of life. This created an opportunity for an extended period of growth - which would not have been possible without this previous destruction. It lay the foundation for extended capital accumulation as countries like Australia were able to profit from the rebuilding much of Europe and East Asia. The ability to experience extended periods of growth was also expanded and extended by the ongoing arms build-up and destruction associated with the Cold War and the imperialist interventions in Korea and Vietnam. In addition, there was an opening up of a wide range of markets to international competition, markets which had previously been closed due to colonial relationships.

The current economic crisis, as devastating and destructive as it is, has not recreated the circumstances of the post-war period in any way. While COVID has unleashed a significant economic crisis as a consequence of a long run over-accumulation of capital, the COVID crisis has primarily stalled the global economy, disrupted in supply chains, and reduced demand and spending power as millions of people have either seen their hours reduced or lost employment entirely. It has not, at least not currently, substantially damaged or reduced the volume of capital goods in the real economy. Particularly not at the level of destruction which would be necessary to enable an extended period of acceleration and growth in profitable investment in the real economy. Which means that it is highly unlikely for the current crisis to reproduce a similar period of growth post the current crisis to that of the post-war boom. 

The significance of this difference can be seen in the what happened to the economies of the advanced capitalist countries at the end of the long-boom, where government stimulus spending was no longer able to smooth the business cycle and enable ongoing growth, but instead resulted in a prolonged period of stagflation, which is characterised by low growth, high unemployment, and high inflation. Any extended attempt at smoothing the business cycle now is likely to result in a similar outcome, particularly, as I will discuss later, as capital is flush with surplus capital.
This is not to say that there should not be an effort to stimulate the economy. Instead, the object of any stimulus should not be modelled on the post-war recovery other than to say it is possible to carry out large scale government spending - just as the government spending of the second world war demonstrated the possibility of massive government spending in the post-war period.

Many small and medium, and some large, businesses will go bankrupt during the current crisis. Any government stimulus should be aimed at supporting these businesses to minimise the impact of any such collapse on the hundreds of thousands of workers employed by them. However, we can see the problem of excess capital in the system even now, where the stock markets globally continue to rise despite being the global economy being in a massive down-turn (admittedly much of this rise isolated to those sections of the stock market that have been seen as a “safe bet”, particularly tech stocks). So government spending in the post-COVID recovery would be best focused on either establishing worker cooperatives or state-run initiatives. Where spending does flow to the private sector it should be tied to the shifting of ownership in part or whole to the state and to establishment and expansion of workplace democracy in those organisations. With a focus then being on a discussion on refocusing these enterprises to meet the needs of society, the workers, their communities rather than achieving private profits.


Chart: All Ordinaries Index 2000 - 2020, source: Market Watch.

Beyond this problem - there is a deeper existential one. Our planet is on the verge of environmental collapse, the biggest threat is climate change, but we have a significantly broader problem, which even if we could achieve a change in the carbon budget, we would be faced with the fact that the planet cannot sustain the need of capitalism to constantly expand and grow. This drive towards growth and expansion is not driven by a commitment to meet human consumption needs - it is entirely disconnected from them and puts human life at risk and threatens to accelerate the metabolic rift being experienced by the planet.

As such while there is space for:
  • Expanding manufacturing for transitioning the Australian economy and those of other countries away from fossil fuel-based energy production;
  • Growing local manufacturing to reduce our reliance on importing manufactured goods and the associated environmental impact of large scale transport;
  • Supporting and funding the transition away from fossil fuels for countries of the global South supporting the development of their local manufacturing and agriculture;
  • Construction of public housing with an emphasis on better quality and more sustainable housing stock;
  • Expanding recycling industries as part of an effort to reduce our reliance on extractive industries for raw materials;
  • Expanding the scope and frequency of public transport;
  • Repairing and strengthening of public services, most notably health, education, and research which the crisis has demonstrated have been woefully under-resourced as a consequence of decades of neoliberalism;
  • Growth in employment in counteracting the destruction that capitalist development has wrought on the environment;
  • Shifting agricultural practices to more sustainable forms;
  • Establishment of a conservation body aimed at direct remediation of the environment and ecosystems
There is no space for a drive for an extended period of growth in the output of either capital or consumer goods.

It remains unclear how much work the focuses above would create. Collectively we need to start to re-envision what full-time work is. The focus on a five-day 38-hour workweek has resulted in both problems of unemployment and underemployment which combined was more than 13% prior to the onset of the pandemic in Australia. At the same time, workers in Australia who are employed full-time worked some of the longest hours in the Organisation for Economic Co-operation and Development. This meant that work is extremely unevenly distributed across the labour market. Rather than pushing for full employment based on 38-hour week model, we should be exploring how to more effectively share employment, particularly in socially and environmentally useful ways that will both enable working people to actually benefit from the last three decades growth in labour productivity by evening the spread of working hours, reducing income inequality across the workforce and ensuring those individuals those who are unable to work have their incomes lifted to a liveable level.

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Friday, April 10, 2020

Morrison’s COVID-19 response puts profits ahead of people


Lisbeth Latham

Federal parliament passed the Coronavirus Economic Response Package (Payments and Benefits) Bill 2020 on April 8, which provided the enabling legislation for a range of stimulus measures the government has already announced, including the JobSeeker allowance.

While the creation of the JobSeeker allowance is significant, and has been welcomed by Australian Council of Trade Unions (ACTU) secretary Sally McManus as a “victory”, the package has a number of significant weaknesses.

Essentially, it outlines that the bulk of the economic crisis will be passed on to working people, particularly more marginalised workers.

The JobSeeker payment will provide qualifying employers with $1500 a fortnight per qualifying employee for six months.

There are qualifying thresholds for employers: those with less than $1 billion in turnover must also have lost more than 30% of their revenue; those with more than $1 billion in turnover must have lost more than 50%; and charities must have lost more than 15%.

When it became clear that there was to be a special category for charities, TAFEs and universities had hoped to be included under charitable organisations. But the government has since made it clear that the payment would only go to organisations providing direct charitable support.

For a worker to qualify, they must be either a permanent or fixed-term employee, and employed prior to March 1. A qualifying casual employee must also have been working for their employer for more than 12 months.

The $1500 JobSeeker payment essentially establishes a new income floor for qualifying employees, paid for by the government.

For around 30% of workers the subsidy reflects either an improvement on, or a maintenance of, their current incomes.

But for the majority of workers, it represents a wage cut and, for many, a significant one.

As the new act amends the Fair Work Act to make it easier for affected employers to change workers’ hours, direct them to take leave, relocate them and make changes to the work they do, any reduction in hours will result in a corresponding reduction in pay for workers, down to a minimum of $1500.

The subsidy is not the starting pay. Rather, a worker will need to work towards and surpass the equivalent number of hours if they are to receive close to their normal pay, as employers are only required to pay a qualifying worker whichever is greater of the $1500, or whatever the worker earns in a fortnight.

For companies still employing people in work, the subsidy is more a subsidy to their profits rather than a wages subsidy, with workers in effect providing $1500 unpaid labour each to the employer.

The failure of the government’s stimulus package to sufficiently protect workers’ incomes was highlighted by an ABC report on April 9 which stated that 617, 000 people have told the Australian Tax Office (up from 360,000 on April 3) that they will be seeking to draw on their superannuation accounts this financial year (after April 20).

If each of these draws the full $10,000 eligible, that will amount to $6 billion. This will not only undermine the future retirement of those workers, but it will impact all working people.

However, as inadequate as the package is, a far greater problem are the hundreds of thousands of workers who do not qualify for any subsidy right now.

These include more than 1 million casuals, workers on visas and workers employed in firms which have not met the revenue loss threshold, but are dismissing or standing down workers nonetheless.

The ACTU had been lobbying for a broader qualifying definition for casual workers, based on a reasonable expectation of further work, which is part of the test for casual employees qualifying for unfair dismissal protections.

Attorney General Christian Porter rejected the ACTU on the basis that it was “too broad”. He justified the government’s decision not to include more casuals on the basis that “casuals move between multiple employers”.

Porter would know that many casual workers rely on a single employer. It also ignores the reality that, while some new work being created, that is dwarfed by the numbers losing work.

The government’s refusal to include all visa holders in its wage subsidy protections, combined with Prime Minister Scott Morrison’s April 3 statement that struggling international students should “go home if they can’t support themselves”, is consistent with successive governments’ view that international students and other visa-holding workers are sources of income and cheap labour which can be disposed of at whim.

Leaving Australia is not a viable option; the government's callousness will simply force these workers into extremely insecure and exploitative situations.

The United Workers Union has launched an important campaign for no worker to be left behind, irrespective of visa status, with an amnesty for undocumented workers. It should be supported. We also need to demand that workers be given permanent residency and citizenship, should they request that.

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[Originally published in Green Left Weekly #1260]
This article is posted under copyleft, verbatim copying and distribution of the entire article is permitted in any medium without royalty provided this notice is preserved. If you reprint this article please email me at revitalisinglabour@gmail.com to let me know.

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Thursday, April 2, 2020

Morrison’s COVID-19 wage subsidy fails workers

Lisbeth Latham

The federal government announced on March 30 that a wage subsidy package would go to parliament aimed at encouraging companies contemplating job cuts and stand-downs to retain and pay workers for the duration of the economic crisis triggered by the COVID-19 pandemic.

The Coalition had explicitly ruled out wage subsidy packages. But its turn-around has come after pressure from unions and employer groups. While the decision has been widely welcomed, the package is inadequate to meet the looming crisis. It has also come too late to help tens of thousands of workers already stood down.

The bailout is a wage subsidy to employers considering laying off workers. It has been set at $1500 a fortnight — 70% of the median wage — irrespective of how much was earned or how many hours worked.

The payments will be available for a maximum of six months: they begin on May 1 and will be backdated to March 30. They will cover workers dismissed between March 1 and March 31 at qualifying companies.

The subsidy will apply to all workers, including casuals, provided that the casual employee has been employed for at least 12 months.

However, the criteria for casual workers to qualify is still unclear, particularly if they have had breaks between jobs over the previous 12 months.

To qualify, a business with a turnover of less than $1 billion will have to have experienced a drop in revenue of 30% or more. Businesses with a turnover of more than $1 billion will have had to experience a reduction of more than 50%. Sole traders are included in the scheme.

While this wage package provides thousands of workers with some comfort, like the previous stimulus package it is inadequate.

First, payments to businesses begin far too late, which means that companies, particularly those with cash-flow problems, will sack or stand-down workers prior to May 1. This is why it should be brought forward.

Secondly, the wage guarantee amount is inadequate: it will leave thousands of working people facing financial oblivion.

Thirdly, all casual workers, irrespective of how long they have been working for a particular employer, should be eligible. It has been estimated that 1 million casual workers will not qualify. The fact someone is employed casually does not reduce their needs: indeed, their precariousness means they have less resources to survive this crisis.

Fourthly, the loss threshold for companies to qualify for the wage subsidy is too high. We do not know how long the pandemic will last. While some companies will qualify now, many will not and they will still be trying to survive with reduced revenues, meaning that thousands more will face stand downs and job cuts.

Responding to the new package, the Australian Council of Trade Unions (ACTU) has renewed its call for a wage subsidy for all workers, regardless of their contractual or employment relationship, citizenship, residency or visa status.

The ACTU argues the payment should be lifted to $1375 a week and modeled on the schemes introduced in Britain (80% of a worker’s wage) and Denmark (75% of a worker’s wage). (The Danish scheme is aimed at putting the economy, outside of essential services, into mothballs to slow the virus spread.)

ACTU secretary Sally McManus said: “The union movement has worked doggedly to make sure this government understands the grave situation Australian workers find themselves in. Less than three weeks ago, the Morrison government wouldn’t consider the notion of a wage subsidy.

“We now need employers to keep people employed and keep paying their wages. We are calling on all employers to do their part.

“We also want to see workers who have been let go re-employed.

“A wage subsidy program needs to have safeguards to ensure people are kept in employment and that any taxpayer money flows to the workers. The government has made clear that this is a wage subsidy and not a wage replacement program, and we would expect to see people maintain their wage levels during this program.”

This will be difficult. With so many companies standing workers down, the ability to mount workplace pressure is extremely limited. Where it is possible, however, pressure will be needed on management to maintain wages and employment.

Equally important is the need to maintain pressure on the federal government to boost wage subsidies and ban sackings.

It may feel impossible to shift the government further. But, given that in just three weeks it has moved from offering cash to small- and medium-sized businesses to a $137 billion wage subsidy for millions of workers, we can see that it is susceptible to pressure.

We can protect the livelihoods of working people and, post pandemic, look to transform society to put people before profits.

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[This article originally appeared in Green Left Weekly #1259].

This article is posted under copyleft, verbatim copying and distribution of the entire article is permitted in any medium without royalty provided this notice is preserved. If you reprint this article please email me at revitalisinglabour@gmail.com to let me know.

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Thursday, March 12, 2020

Working communities must not be made to pay for COVID-19 crisis

Lisbeth Latham

As COVID-19 spreads globally, and the threat of widespread community transmission becomes more real, it has become clear the new coronavirus poses not only a major health risk but a significant threat to the livelihoods of millions of workers.

The unfolding crisis has led to rising pressure from companies to protect profits at the expense of working people and their communities. In the face of this pressure, it is important progressive forces raise demands that place the welfare of workers first.

Sickness benefits and leave
In announcing the government’s response to COVID-19 on March 11, Prime Minister Scott Morison indicated workers without leave entitlements might be able to access Sickness Allowance. This is not a real answer to the challenges facing working people.

Sickness benefits are also wholly inadequate and would cast thousands of people into poverty. The government’s proposal highlights the need for all welfare payments to be dramatically raised.

The most vulnerable section of the workforce are the 3.3 million casual workers who do not receive sick or other paid leave.

This lack of leave pay poses a major health risk to the community: experiences internationally show that if we are to avoid the hospital system being overwhelmed it is vital that individuals who are potentially infected or have had their infection confirmed, self-isolate.

However, casuals face an impossible choice of either not working for weeks, and being ruined financially or working, and potentially infecting workmates and other individuals who they come into contact with.

Industrial relations minister Christian Porter's comment on March 10, that "many people would have already made provisions for that because, of course, the purpose of casual employment is that you’re paid extra in-lieu of the types of entitlements" reflects the government’s total indifference to the real misery casual workers and their families will face as COVID-19 spreads.

It also exposes the government’s desire to appear to be addressing the challenge while doing nothing.

The Australian Council of Trade Unions (ACTU) has called on the federal government to legislate that casual workers who have to self-isolate receive two-weeks’ pay. This represents the time period that, in mild cases, is seen to be necessary to allow the virus to develop and those infected to recover.

While this is an important demand, it is most likely an insufficient amount of leave, at least for some workers.

Some workers will contract more serious cases of COVID-19 and potentially be hospitalised with severe respiratory problems, leaving them faced with a lack of income after the two-week period to pay their rent or mortgages and feed their families.

Moreover, it is unclear how long the recovery time really is, with studies in China suggesting people who have recovered from COVID-19 symptoms can remain infectious for days.

Casual workers, like other workers, may also need to be carers for family members in self-isolation or those unable to attend school due to closures and require more than two-weeks leave.

No job shedding
Economies globally have started to slow. This is most notable in China, but the slowdown is expected to continue, particularly if widespread community transmission occurs in more countries.

The slowdown cannot be simply blamed on COVID-19; it is an exacerbation of underlying weaknesses in the global economy, which has seen ongoing periods of slow growth in the wake of the 2007-08 Global Financial Crisis.

While the impact of COVID-19 on the economy has primarily been in education and tourism, its effect can be expected to spread to other sectors.

The impact of this slowdown can be seen in QANTAS’s March 10 announcement that it will be reducing flights by 25% and moving to use smaller planes on a number of routes, with the aim of lower costs and reducing excess capacity.

While reducing capacity in the face of an expected decline in demand makes sense, QANTAS is also saying it has about 2000 workers who are “surplus to requirements”. This raises the spectre of workers being asked to take unpaid leave and, potentially, mass layoffs — and not only at QANTAS.

Any such mass layoffs are an attempt to bolster profits at the expense of the lives of thousands of workers. They are not only thoroughly immoral, but risk exacerbating and deepening the downturn.

Profitable companies should be legally prevented from sacking workers — this should be the case anyway, but this measure is particularly vital in the face of a widespread downturn.

Any reduction in the need for labour hours must be addressed via the introduction of a sliding hours-wages scale, where the working hours of all workers at a company are reduced equally to meet the lower work requirements and the hourly wage rate is raised to ensure no worker is left worse off.

Companies that argue they face bankruptcy should have to open their books to unions and the government, with aid provided to enable them to keep operating where deemed necessary.

The government’s response of COVID-19 must be guided by the principle that workers’ lives are worth more than company profits.

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[This article was originally published in Green Left Weekly #1257. Lisbeth Latham is a union activist and trans feminist writer. She is a contributing writer with Irish Broad Left.]

This article is posted under copyleft, verbatim copying and distribution of the entire article is permitted in any medium without royalty provided this notice is preserved. If you reprint this article please email me at revitalisinglabour@gmail.com to let me know.

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Friday, September 22, 2017

Why marriage equality is union business

Lisbeth Latham

In the lead up to and following the announcement of the plebiscite, now survey, on changing the Marriage Act, unions have played a prominent role in promoting and resourcing the Yes campaign.

Senior union officials have been speakers at rallies, there have been large union contingents at protest marches and unions — especially peak bodies such as Victorian Trades Hall Council and the Australian Council of Trade Unions — have been providing infrastructure to help build the capacity for the campaign to ensure maximum participation and support for the Yes side.

This strong position in support of marriage equality has attracted criticism from some union members as both a distraction from the “core business” of unions — wages and conditions — and as a failure by unions to “respect the views of members who are opposed to marriage equality”.

However, support by unions for marriage equality is consistent with long traditions within the labour movement of solidarity with oppressed and marginalised communities, and in support of democratic rights — approaches that help to build and strengthen the capacity of the union movement to win improvements for members, not just on the job, but throughout society.

Examples of the kinds of criticisms that unions supporting marriage equality have received can be seen on a recent post on the Construction Forestry Mining Energy Union’s (CFMEU) Construction & General Division’s Facebook page of an email to the union by a member.

The email was from a gay CFMEU member thanking the union for taking a strong position in support of marriage equality and for organising a toolbox discussion around the issue on their worksite. It also raised concerns about the homophobic behaviour by some workmates during the discussion.

At the time of writing, this post has been shared 204 times and had attracted 123 comments. While the vast majority of these comments have been positive, there have been negative commenters who argue that the CFMEU’s support for marriage equality is a distraction from the union achieving improvements in wages and conditions for members and a violation of the rights of those members who do not support marriage equality.

These criticisms are not new and reflect a conservative view of unionism in which the role of the union in the lives of its members starts and finishes at the entrance to the workplace and unions should not seek to mobilise its members and resources on broader political questions.

The current Marriage Act and the No campaign are having a negative impact on the working lives of LGBTI union members. The act denies these union members of fundamental rights and the “debate” around the survey is contributing to a toxic culture where a section of society feel justified in vilifying LGBTI people in the street and in the workplace.

This alone is a strong basis for unions to support their members and push for marriage equality as it is the embodiment of the core union tenant that “an injury to one is an injury to all”.

Moreover as, CFMEU South Australia branch secretary Aaron Cartlege said in his address to the marriage equality rally in Adelaide: “Why does the CFMEU back the Yes vote? I'll tell you why we back the Yes vote ... for 15 years we’ve been campaigning because we’re discriminated against on building sites with draconian laws that target our members every day.

“How can we be calling for ‘one law for all’ and then have a different view when it comes to this?"

The conservative vision of unionism runs counter to the long tradition within Australian unionism, particularly within left unions such as the CFMEU, which sees the union movement as having a vital role to play in building a better world for all workers.

This vision has seen Australian unions actively campaign around issues affecting working people globally: opposition to conscription; refusing to load pig iron destined for the Japanese war machine that had invaded China; refusing to load Dutch ships in support of the Indonesian national liberation struggle; supporting striking Aboriginal pastoral workers and the struggle of Aboriginal land rights; opposition to South African Apartheid; green bans on developments that robbed communities of environmental and cultural heritage; opposition to Australian involvement in the Vietnam war and the Iraq war; in support of the East Timorese liberation struggle; and in support of the right of refugees to claim asylum in Australia, to name just a few.

These campaigns did not lead directly to improved wages and conditions on the job — but they contributed to the mobilising capacity of unions both on and off the job and helped to build respect within the broader community for the central role that unions play in building a socially just and liveable planet.
For all these reasons marriage equality is union business.


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Lisbeth Latham is a member of the Socialist Alliance


This article was originally published in Green Left Weekly #1154

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Saturday, September 16, 2017

How employers are attacking workers

Lisbeth Latham An increasing number of employers are asking themselves why they should have to abide by the terms of an Enterprise Agreement with their workers and unions, when it would cost less money if they didn't. Many have come to the conclusion that they should simply escape the obligations of their agreements.

The problem for workers is that companies who attempt this find that the Fair Work Commission (FWC) and the federal government increasingly support the idea that companies should be able to escape agreements so they can pay their workers to lower wages and have fewer limitations on their management prerogative.

The most recent example of this is the decision by FWC to terminate the Murdoch University Academic and General Staff Enterprise Agreement as of September 26. The effect of this decision, albeit with an undertaking from the employer to maintain wages, leave and other conditions for six months, is:

  • Salaries could fall by between 20% and 39%;
  • Superannuation contributions could fall from 17% to 12.5%;
  • Redundancy payments could fall by at least 33% for academic staff and up to 80% for professional staff;
  • Parental leave could become unpaid leave;
  • Personal leave could fall from 12 days a year to 10;
  • Academic workload regulation could disappear; and
  • Staff will become dependent on promises and policies that the university could change at any time for any reason.
FWC Commissioner BD Williams accepted Murdoch University management’s argument that it is facing serious financial difficulty and that 25 of the agreement’s clauses “were not supportive to Murdoch operating as a flexible and efficient enterprise” and that the termination of the agreement would strengthen the position of Murdoch management to negotiate a new agreement with the clauses it is seeking.
On August 30, federal education minister Simon Birmingham called on all universities to take advantage of this opportunity.
The criteria for seeking the termination of an agreement is extremely limited. The agreement must have passed the nominal expiry date; a genuine attempt must have been made to reach agreement; it needs to be in the public interest; and the commission must consider it appropriate to terminate the agreement.
The “public good” test is increasingly low. The test used in the Murdoch case was the potential impact on the WA state economy if Murdoch wages were to revert to the award. Universities are relatively large employers, but they are still only small components of the total wages paid in any state.
It would seem unlikely that many private employers would have a wage bill large enough to have a major impact on the economy, making the test largely meaningless.

Change the rules


The National Tertiary Education Union (NTEU) and the ACTU have both rightly pointed to the Murdoch decision as further evidence of the need to change the rules of Australia's industrial relations system.
NTEU WA Division Secretary Gage Gooding said: “The way in which this agreement has been terminated is another example that our laws are badly broken and must change to ensure the just treatment of workers”.
ACTU Secretary Sally McManus said: “This is the latest in a very long list of companies that have exploited this incredibly destructive precedent set by the Aurizon case at Fair Work. We need immediate action to stop companies completely bypassing the normal bargaining process and reaching for this nuclear option … we need to change the rules so they are not used by employers to blackmail workers into accepting lower pay and job security.”
Tasmanian independent MP Andrew Wilkie has announced his intention to introduce a private members bill to ban such “nuclear” terminations of enterprise agreements.
But it is important to note that making it tougher to terminate agreements — or even putting the decision in the hands of workers and their unions — would only close the door on one avenue for employers to seek to massively undermine agreements through reversion to the award. Options such as using labour hire or outsourcing work to contractors would remain and enterprising companies could find further options to escape an agreement.
The fundamental problem is the massive gap between the wages and conditions in the majority of EBAs and the underlying awards and the ways employers can seek to employ new workers paid at the award rate or just above it.
While awards were the primary mechanism of providing employment conditions prior to the introduction of enterprise bargaining in 1993, unions had always been able to secure above award conditions. These conditions could then be incorporated into the underlying award and from there flow onto other awards. This process was central to the Australian Manufacturing Workers' Union (and its precursors’) “hot shop approach” to collective bargaining.

Gap between enterprise agreements and awards

With the passing of the 1993 Industrial Relations Reform Act and the subsequent Workplace Relations Act the relationship between local conditions and awards became one directional: only awards could affect conditions in an individual workplace not the other way around. This meant that over time there was a gap grew between the wages and conditions in enterprise agreements and the underlying awards.
The gap between enterprise agreements and awards was exacerbated by the Howard government's award stripping, which limited the number and types of matters that could be included in an award. This not only massively increased the gap between awards and agreements, but at a stroke of a pen it stripped hundreds of thousands of workers of rights they had previously won.
Re-establishing a two-way relationship between local working conditions enshrined in an agreement and industry-wide award conditions will not only help protect agreements from being undercut by employers seeking to revert to the award, but also enable the hard work of workers seeking to improve their conditions to flow onto other workers in their industry, helping to build social solidarity and limit the competitive advantage of employers who resist enterprise agreements.
Such a shift would be deeply opposed by employers and would be a fundamental break with the direction and thinking of the FWC and its precursor over the past 25 years. But it would be a significant change that could dramatically improve the working lives of millions of workers.
However, simply changing the rules would not be enough, as history has shown that bodies like the FWC are not neutral umpires who can be relied upon to deliver fairness to working people. Wage justice will require an ongoing movement of working people in support of improved wages and conditions.
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Originally published in Green Left Weekly #1153

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Thursday, June 4, 2009

Socialist Alliance: Open Letter to delegates to the 2009 ACTU Congress

Dear fellow unionists,

As delegates to this ACTU Congress you have piles of policy before you, but one basic decision to make.

Should you back the ACTU leadership’s support for Rudd’s Fair Work Act or oppose it?

The Congress papers say that “the Fair Work Act sees the end of the direct legislative assault on organised labour” and “represents a substantial, albeit imperfect, transition of the 2006 ACTU Congress policy into legislation.”

That’s just spin! Read the Congress’s own Industrial Relations Legislation Factsheet and the truth comes out (see the basic facts about the Fair Work Act below, mainly taken from this Factsheet). Workers are still losing.

The draft Congress Industrial Relation Policy says that the new legislation gives the union movement a chance to “grow unions, protect jobs and advance workers’ interests”.


If the economy were booming we could almost believe this, even though it would still be a recipe for a stagnant union movement. But we’re entering the biggest recession in 70 years, with thousands of jobs already lost and one-and-a-half hands tied behind our backs by Rudd’s law.

If more workers have joined unions since 2006, it’s because the Your Rights at Work campaign was seen as defending their interests. To keep growing we must keep campaigning for our rights, which remain crippled by Fair Work Australia.

It’s high time to drop business-as-usual-don’t-embarrass–Kevin-and-Julia-too-much unionism. This compromised approach gave the vast majority of workers lower wage increases during the resources boom than would otherwise have been the case, and meant that profits and CEO packages skyrocketed (check the Congress Wages and Collective Bargaining Factsheet for detail).

Instead of a vague, feel-good resolution about “campaigning” and waiting for Kevin 2010 to remove the bad bits of the Fair Work Bill, this Congress must adopt two basic positions:

  1. For a full-scale, cross-union industrial and community campaign against the Australian Building and Construction Commission, one that will continue until it or any replacement scheme is abolished, and building workers have the same rights as all other workers;
  2. For a campaign of industrial disobedience to the most crippling provisions of the Fair Work Act, including its ban on pattern-bargaining, restrictions on the right to take industrial action, restrictions on the rights of unions to organise and enter work sites and restrictions on the contents of industrial agreements.

The November 2008 suspension of charges against CFMEU official Noel Washington shows that workers and their unions can win if they organise to act against injustice. It’s the sort of unionism we´ll need just as much under the Rudd government as under Howard.

Let’s build a campaign now against all that is still anti-worker in the Fair Work Act—beginning with the anti-democratic Australian Building and Construction Commission.

Socialist Alliance National Trade Union Committee
Distributed by Tim Gooden, Secretary, Geelong Trades Hall Council, as a contribution to debate at the 2009 ACTU Congress


Yes, the Fair Work Act is WorkChoices Lite!
Check out the following powers of the Fair Work Act, detailed in the Congress’s own Industrial Relations Legislation Factsheet.

If Malcolm Turnbull introduced such anti-worker industrial laws—which violate International Labour Organisation standards—wouldn’t the union movement be fighting them?

  1. The Fair Work Act cuts back unions’ right to organise
    ↓ 24 hours notice of right of workplace entry, restricted access to employee records ↓Bans pattern bargaining, allowing very restricted “multi-employer bargaining” only for low paid
    ↓No restriction on employers using pattern bargaining
    ↓Employer right to seek injunctions against unions using pattern bargaining ↓Employer right to challenge the conduct of ballots to frustrate protected industrial action
    ↓No positive rights for union delegates
    ↓No positive rights for workers to join unions and participate in their work ↓Almost no recognition of the role of delegates in representing workers in bargaining process
    ↓ No requirement for employers to facilitate union access to workplaces
  2. The Fair Work Act prevents workers from improving their living standards
    ↓Limits award content to 10 listed matters
    ↓Fails to enshrine in minimum standards: 11 public holidays per annum, a right for parents of pre-school children to part-time work, rights to information and consultation in the workplace, retrenchment pay for employees of smaller businesses, and any guarantee that workers entitlements will be paid first in the case of company failure
    ↓Restricts matters that can be covered in an agreement, banning enterprise-specific unfair dismissal and right of entry agreements.
    ↓Allows award modernisation that could result in reduced standards in some industries and occupations
    ↓Maintains existing AWAs, including ones that would not meet the government’s own standard for fair agreements
    ↓Allows an employer taking over a company to refuse to employ workers transferring from business being taken over
  3. The Fair Work Act keeps penal powers, including those established by Work Choices
    ↓Requires secret ballots for protected industrial action
    ↓Preserves the Work Choices requirement that employers deduct strike pay even in circumstances where employees are at work
    ↓Allows the use of scab labour
    ↓Doesn´t give workers the right to conduct meetings to prepare for bargaining ↓Increases the penalties Fair Work Australia can apply to “ensure compliance” with its rulings
    ↓Bans industrial action in support of economic and social campaigns (like that against Work Choices)
    ↓Bans industrial action even where an employer proposes radical workplace restructuring
    ↓Keeps the anti-union provisions of the Trades Practices Act
    ↓Leaves a dispute with the boss to be settled in the normal court system unless the boss agrees to have it judged by Fair Work Australia
  4. The Fair Work Act discriminates against different groups of workers
    ↓Removes “high income” earners from award coverage
    ↓ Leaves contract workers with fewer rights than employees, including no rights to union representation or collective bargaining
    ↓ Allows a longer qualifying period for employees in small business
    ↓Makes it easier for small business to sack workers
  5. The Fair Work Act maintains unions in a weakened legal position
    ↓ Does not actually define the rights of unions
    ↓Abolishes unions as parties to agreements, which are made between employers and their employees
    ↓Does not require unions to consent to changes to an agreement, even when the union is covered by the agreement.
    ↓Fails to enshrine a right for all employees and unions to be informed about the strategic designs of the employers
    ↓Provides no clarity about where federal or state laws apply, much less enable workers to opt into the federal or state systems

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      Friday, November 24, 2006

      Union recognition ballots:The US experience

      Lisbeth Latham

      Among the proposals included in the Australian Council of Trade Unions’ industrial relations legislation policy, adopted at its October conference, were provisions for unions to be able to hold elections to win recognition in workplaces where the boss refuses to bargain with them. These ballots are aimed at addressing the lack of a mechanism whereby unions can make an employer negotiate a collective agreement for workers. Such ballots have been a feature of the US industrial relations system for over 70 years.


      Union recognition ballots were introduced in the US in 1935, in the wake of the mass labour upsurge that began in 1934. Prior to their introduction, employers had traditionally countered organising campaigns though massive repression using private security guards, police and the National Guard. In 1934, thousands of workers in Minnesota, San Francisco, Toledo and across US coalfields fought pitched street battles as part of a series of general strikes that won union recognition and significant improvements in working conditions.

      Faced with an increasingly confident working class inspired by these victories, the Roosevelt administration introduced a National Labor Review Board (NLRB) provision for union recognition to blunt the rising-tide of union struggles. In 1947, the Truman administration passed the Taft-Hartley Act, which allowed for derecognition ballots in already-organised workplaces.

      During their first 30 years, the ballots played a role in helping the growth of the US union movement. During the post-war boom, US companies were able to afford regular pay rises and improvements in working conditions for the core of unions’ membership in the old industrial heartland of the north-east and mid-west.

      In a period of rising profits, capital was happy to negotiate with unions. But the sharp economic crisis in the world economy and the boom’s end saw employers begin an aggressive campaign to strip wages and conditions that unions had won, by actively attempting to keep the US union-free.

      NLRB recognition and derecognition elections have become the central mechanism through which US bosses have attempted to keep themselves union-free or rid themselves of a union presence. In the November 5, 2005, In These Times Christopher Hayes wrote that 75% of US employers’ contract outside union-busters to help run their campaigns to defeat ballots. The organisations employ a range of tactics to undermine organising efforts and intimidate workers. These include:


      • Shifting known anti-union workers into workplaces that are holding ballots;
      • Holding closed meetings where management shows videos about workplaces that have closed - down after being unionised;
      • Sacking and/or transferring out known union activists;
      • Holding one-on-one interviews with workers to intimidate them into not joining unions.

      The most notorious US union-busting company is retail giant Wal-Mart, which circulates guides to its store managers about how to identify and respond to attempts by workers to organise. Wal-Mart’s determination to remain union-free can be seen from its response when workers win ballots in its stores.

      In 2000, when butchers in Jacksonville, Texas, voted to join the United Food and Commercial Workers, Wal-Mart responded by announcing that henceforth it would sell only pre-cut meat in all of its supercentres, fired four of the union supporters and transferred the rest into other divisions (the action was ruled illegal by the NLRB three years later). When workers in Quebec successfully organised their store, Wal-Mart closed the entire store.

      The impact of these actions has been a decline in recognition ballots. Despite expending millions of dollars on organising new workers — the AFL-CIO union federation alone has an organising budget of US$10 million — in 2002 US unions won 54% of ballots held, with 78,284 joining unions as a consequence of the vote. Eighty-thousand workers — just 0.1% of the US work force — are being organised into unions through ballots each year and only 9% of US workers are members of unions, compared to 500,000-per-year during the 1950s, when 35% of workers were members of unions.

      Even more worrying for US unions is that they are less successful in defeating derecognition ballots. This reduced win-rate reflects that winning a recognition ballot does not force the bosses to bargain in good faith, and they are more likely resist a union’s attempt to secure a contract when they know that they can use the failure to help push the union out in a subsequent ballot. According to the AFL-CIO, unions secure a collective agreement in less than two-thirds of workplaces after a successful recognition ballot.

      A sharp rise in labour-practice violations by US bosses has been associated with limited penalties for companies found guilty of violating workers’ rights. While having stronger penalties could reduce the likelihood that employers will attempt to intimidate workers (depending on the cost of fines compared to that of having a unionised work force for employers), the penalties would be permanently under threat. Additionally, this builds reliance on courts to protect workers’ rights — rather than building unions’ strength and capacity to defend workers — undermining the confidence of workers to take on the boss and organise.

      In industries with high employment turnovers, any delay on a ballot, such as court action around violations by employers, can help undermine unionising drives, so that even when unions win court cases to defend workers’ rights they lose the ballot.

      Although winning union recognition is an important step in building a union, on its own it doesn’t build an organisation able to consistently win contracts. Getting people to vote in a recognition ballot is different to getting them to participate in an industrial campaign to win a contract, which can turn into a war of attrition between workers on the one hand and the boss on the other.

      In the US, some of the most successful organising campaigns have bypassed the ballot process entirely, such as the Justice for Janitors campaign. Similar to the strategy followed in the Australian construction industry by the Construction, Forestry, Mining and Energy Union, this focused not only on mobilising members and supporters to place maximum pressure on employers. It also sought to shift the focus of the campaign from subcontractors who employ janitors, who have extremely tight profit margins and are more difficult to win contracts from. Instead, Justice for Janitors has targeted the larger companies, such as hotels and resorts, to force them to pay more to subcontractors and to only contract unionised subcontractors.

      Union recognition ballots undermine the democratic right of workers to be members of unions, as they remove the right of individual workers to join a union and be represented by it. Any call for union-recognition ballots by the labour movement reflects a significant retreat from the right of unions to represent workers wherever they have members.

      Originally published in Green Left Weekly #692

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      Tuesday, July 26, 2005

      'What do we want? Howard out!'

      Lisbeth Latham

      Despite heavy showers, 20,000 people joined the Unions WA-organised rally in Perth on June 30 against PM John Howard’s proposed industrial relations laws. Union contingents converged on the Perth Cultural Centre with chants of “What do we want? Howard out!”


      The largest union contingents came from the Construction, Forestry, Mining and Energy Union (CFMEU), the Electrical Trades Union (ETU) and the Maritime Union of Australia (MUA). Thousands of workers from the state’s public sector joined the rally, after the state Labor government decided that public sector workers would not be docked pay if they took an extended lunch break to attend.

      Rally speakers included ACTU president Sharan Burrow, Western Australian Premier Geoff Gallop and ALP federal industrial relations spokesperson Stephen Smith. The rally heard greetings from the Southern Initiative on Globalisation and Trade Union Rights conference that had been meeting in Bangkok and had led a protest at the Australian embassy to condemn the Howard government’s attacks on workers’ rights.

      A series of protests across regional Western Australia began on June 27, when 3000 workers rallied in Karratha. Workers voted to follow the rally with a 24-hour strike. On June 28, 100 workers rallied in Geraldton, while 500 workers attended each of the protests held in Albany and Bunbury on June 30.

      Chris Cain, secretary of the Western Australian branch of the MUA, told Green Left Weekly “The rally here in Perth was absolutely fantastic!”, noting how the “tremendous turnouts” in the regional centres “really inspired workers all around WA and here in Perth to get on board”. Cain said “the way the unions, churches, politicians, unemployed and the community came together was great”.

      Unions WA secretary Dave Robinson described the rally as “a phenomenal display from the community in Western Australia”. He told Green Left Weekly that people “do not accept what John Howard is proposing for them” and that Howard has “no mandate to continue down this path”.

      Jim McIlroy reports that around 20,000 workers crammed into the King George Square in Brisbane on June 30, spilling over into nearby streets. Large contingents of up to 2000 each from the ETU, the Australian Manufacturing Workers Union (AMWU), the construction union and the Transport Workers Union (TWU) marched from separate rallying points.

      According to Queensland Council of Unions general secretary Grace Grace, the rally was the largest industrial mobilisation in Brisbane in a decade. A weekend of protest is being planned for July 30 and 31.

      Labor Premier Peter Beattie pledged that his state government would introduce legislation to protect workers’ conditions, but conceded that the Howard government could move to override any state laws.

      AMWU member Andrew Martin told Green Left Weekly that the feeder rallies held by the AMWU and ETU at Roma Street Forum were “very impressive and militant”.

      “This is just the beginning. Howard doesn’t realise what he’s in for. We will fight till we win”, AMWU organiser Tracy Bradley told the rally. There were numerous calls for a national strike from the rank and file.

      Susan Austin reports that at least 3000 people attended an indoor rally in Hobart’s City Hall on June 30.

      Simon Cocker, secretary of Unions Tasmania, encouraged everyone to speak to their workmates and others, to complete petitions, and “work to influence the moderates and the decent conservatives to convince them that these proposals are wrong”. The mood of the rally was defiant and many people took away campaign material and pledged to organise their workplaces.

      Tasmanian MUA secretary Mick Wickham told Green Left Weekly that 500 people rallied in Devonport on June 30. Members of the Australian Nursing Federation, the Health and Community Services Union, meatworkers and the MUA all walked off the job to protest.

      According to Wickham, “This was a great turnout and considering a lot of people aren’t even aware yet of how these laws will affect them, it means the campaign is off to a very good start, and will grow a lot in the next month”. He said that unions in the north of Tasmania are meeting weekly to organise the campaign and are planning actions every three weeks.

      More than 2000 workers protested in Darwin on June 30, reports Kathy Newnam, including a large contingent from the Bechtel Gas plant at Wickham Point. The rally heard from Unions NT’s Nadine Williams, who welcomed the protest as the “beginning of a long campaign”.

      NT treasurer Sid Stirling, who joined the rally along with all members of the territory Labor government, declared that his government would “stand with every unionist in the NT and see the fight through and see it won”. He promised that employees in the NT public sector would be spared from Howard’s industrial relations changes, because “as an employer, we won’t have it”.

      Stirling told the crowd that the NT government’s legislative power is limited, as territory legislation can be overruled federally, but that the government is seeking constitutional advice on “whatever laws are necessary to protect workers”.

      The rally also heard about 30 contract workers at the alumina refinery on Gove peninsula who held a 24-hour stoppage after Alcan attempted to prevent them from joining the Gove rally.

      James Caulfield reports that more than 500 unionists descended on the Hyatt Hotel in Canberra on June 26 for a rally outside the federal Liberal Party council meeting.

      From Green Left Weekly issue #632

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      Revitalising Labour attempts to reflect on efforts to rebuild the labour movement internationally, emphasising the role that left-wing political currents can play in this process. It welcomes contributions on union struggles, internal renewal processes within the labour movement and the struggle against capitalism and imperialism.

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