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AWAs override union inflexibility
09-May-2007
AMMA Chief Executive Steve Knott says that denying that AWAs facilitate a more committed flexible workforce is like suggesting the Great Wall of China was a rabbit-proof fence.



THE Perspectives article by David Peetz (May 7), Digging to the truth of AWAs, seeks the truth on AWAs but does not want to acknowledge it.

Denying that AWAs facilitate a more committed flexible workforce is like suggesting the Great Wall of China was a rabbit-proof fence.

But first let me reveal my bias. For the past 90 years the Australian Mines and Metals Association has represented the employer interests of the mining and oil and gas industries in Australia. Our members' interests are in maximising the potential to tap into Australia's mineral reserves and exporting them to the world. A byproduct of this desire is the creation of employment in Australia with a highly skilled, highly productive and well-paid workforce.

Peetz is not so forthcoming. He is not just another left-wing union collectivist academic; Peetz sings the tune of the union movement both literally and figuratively. A Brisbane trade union choir member, tunes like "You're fired" sung to the tune of Rawhide and aimed at Prime Minister John Howard appear in his repartee.

Let's talk about the evidence that is not in dispute:

• The Australian resources sector is booming with export receipts for the coming year estimated at more than $114 billion.

• The Office of the Employment Advocate estimates the resources sector has 51,800 AWAs. This includes the heavily unionised coal sector.

• An OEA review of mining agreements lodged in the past three months found that 80 per cent of the mining industry employees had entered into an AWA as their preferred form of agreement making.

• The offering of jobs based on AWAs has not deterred 20,000 workers applying for 1000 jobs at Rio Tinto in the past 12 months

• Only 8 per cent of Rio Tinto's workers, including coal sites, are on a union collective agreement.

Despite howls from the union movement and its supporters, the AWA is clearly the industrial instrument of choice in the resources sector.

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