AMMA urges the ALP to look at all the facts before signaling to international capital markets that workplace reform in Australia could be halted or wound back.
AMMA Chief Executive Steve Knott stated that, “The system of AWAs and allowing employees and employers to directly negotiate on employment matters has been extremely beneficial for all parties involved in the mining industry. All the indicators are positive: remuneration has gone up, safety performance has improved, training expenditure is greater, industrial action is a thing of the past - everybody's winning out of this.”
Sixty per cent of all mining industry employees currently engaged under a federal agreement are covered by AWAs. This figure increases to 80 per cent if you exclude the coal sector.
AMMA estimates Australia could suffer the potential loss of up to $6.6 Billion per annum in Australian Export earnings as a result of the removal of AWAs.
The proposal to abolish AWAs leaves business leaders throughout Australia concerned where Australian business falls in the ALP’s priority list.
If AWAs are abolished employers and employees may legally be subject to unwanted third party (unions and industrial tribunals) interference and associated red tape in the negotiation of employment terms and conditions. Going back to a time where there was no choice provided to individuals to negotiate flexibility in their employment conditions is not where business wants to be in 2007 and beyond. Many in Australia will recall the industrial action chaos that hampered the progress of business in Australia when unions and industrial tribunals last had a stranglehold on Australian business.
“A responsible approach is to develop mutually beneficial relationships between employees and employers, not to destroy them by removing AWAs. Australia’s current flexible approach to employment relations has assisted several industries to improve overall performance and international competitiveness over the last decade. Mining is just one of these industries and serves as an example of the benefits the current system has contributed to. The improvements are quite clearly visible” said Mr Knott
Since Latham announced the ALP would abolish AWAs in 2004 and Beazley’s announcement confirming the Latham position, business opposition to the proposed changes has been clear.
AMMA encourages Kim Beazley and the ALP to take notice of the growing choir of discontent and listen to industry leaders and employees who are voicing their opposition to the proposed removal of AWAs.