Statement by Steve Knott AM
Chief Executive, AREEA

This week we have seen the Australian Council of Trade Unions (ACTU) continue in its attempts to create some kind of faux class warfare battle between Australian employers and employees.

While it is important to be aware of the ACTU’s campaign, currently too many IR commentators are falling for the ACTU’s pea and thimble trick; that is the misnomer that there is a big conflict between capital and labour in Australia.

The resources and energy sector in Australia has no intention of ‘fighting unions’.

Most workplaces in the hard rock mining sector are largely non-unionised and have been for decades. In the oil and gas, smelting, coal and construction sectors there are varying degrees of unionisation.

Where unionisation exists, most have constructive workplace relations dialogue with their employees and their union representatives.

The modern Australian employee is far less combative than the ACTU would have many believe. This is evident by falling union membership and a lack of union campaign cut-through at the ground level.

On this front, the average employee in the resources and energy sector is more likely to check up on their stock investments than gear up for a class warfare fight with their employer.

Simply put, while vinyl LP’s and ABBA might be making a comeback, a 1970’s style fight between capital and labour most certainly won’t be.

The Government’s workplace agenda:

Instead of some faux class war, what’s needed is clear, well-communicated counter-messaging to inform a strategic and forward-thinking workplace relations policy debate.

Following Minister for the Workplace Craig Laundy’s address to the Australian Industry Group yesterday (April 30), I noted that the government’s vision for growing the economy and creating jobs is directly aligned with ours.

That said, what’s lacking from both government and many in the business community is strong messaging about a workplace relations system fit for the future, fit for our rapidly changing modes of work, and that will allow Australia to compete in the global marketplace.

For self-interest reasons the ACTU and ALP have been directing focus onto their backwards workplace agenda. It is way past time business groups and indeed government stop falling into the trap of commenting on their nostalgic return to the 70’s agenda.

One way or another it’s simply not going to happen. Businesses will adjust and flourish or whither on the vine and vanish.

Moving forward AREEA would like to see more discussion about:

• Individual agreement making, subject to people being better off, which caters for the 90% of Australians in the private sector who choose not to join unions.
• Circumstances where employers and employees can voluntarily agree there’ll be no industrial action where their business is involved in essential services and/or major commercial contracts that require continuity of supply.
• Employers being able to recruit people from former business entities without being bound to the old and outdated workplace agreements of their former employer.

There are myriad of other workplace relations reforms that neatly feed into the ‘jobs and growth’ mantra of the Turnbull Government. This is the area both government and business should be pursuing.

Workplace Relations should be restored to cabinet:

In order to pursue and better communicate a future-focused vision on workplace relations, I remain of the view the Turnbull Government should restore the workplace portfolio back into Cabinet.

I believe it was a mistake of the Turnbull Government to have demoted the workplace relations portfolio to a junior ministerial role during the December 2017 reshuffle. This marked the first time since Federation that it wasn’t a cabinet role.

It also signaled a downgrading of the significance of the portfolio at a time where there is a real contest on the future of workplace relations in this country.

The resources and energy industry, which is experiencing unrelenting change and continued global competitive pressures, sees increased efficiency, flexibility, direct engagement and productivity in our workplaces as key to our future prosperity and jobs creation.

Meanwhile, the union movement is advocating aggressively for a return to the “Old IR Club” approach underpinned by combative strategies and anti-business campaigns.

Workplace relations is a key policy area that is front and centre of business considerations and front and centre of the policy and political debate in Australia. It should receive the same attention and respect from government.

MEDIA CONTACT: Tom Reid, 0419 153 407