Australian Financial Review http://www.afr.com.au/content/990703/news/news5.html July 3, 1999 Reith 'third wave' would wipe out awards By Paul Cleary Australia's award system would be abolished under a radical "third wave" agenda which re-establishes the industrial relations system under the corporations power, according to a plan being developed by Workplace Relations Minister Mr Peter Reith. The move, which could also establish a unitary system with no State government involvement, is one of a number of new policy fronts being explored by the Government following this week's passage through the Senate of the tax package. The Prime Minister, Mr John Howard, is expected to outline several key "future directions" in the industrial relations arena at a keynote speech to the Liberal Party federal council meeting on Sunday. Mr Howard's speech will canvass the need to develop knowledge-based industries, national family life and a "social coalition" which involves a greater role for business philanthropy. Mr Reith has been given the green light by the Prime Minister to explore even more radical reforms, even though the "second wave" is yet to be implemented and is likely to be locked in the Senate for months. The use of the corporations power to deregulate the IR system further is now the Government's favoured option, although it received only a one-paragraph mention in Mr Reith's letter to Mr Howard last December which canvassed "101 ideas" for reducing unemployment. Mr Reith now plans to release a "ministerial discussion paper" on the agenda. Over the past three months he has consulted widely with companies and industry groups on the plan, which involves setting "community-wide minimum standards" under the corporations power. The plan could result in Australia having a unitary industrial relations system, although this would require the States to transfer their industrial relations powers. A compromise could see the States being left with control over unincorporated enterprises that are not covered by the corporations power. Mr Brendan McCarthy, a director of the West Australian Chamber of Commerce and Industry, said the problem with unincorporated businesses could be overcome by a referral of State powers. "It really leads to a unitary system," he said, although he suspected that the end result would be a dual system. Mr McCarthy said the plan should be attractive to unions because of the increasing number of workers who were not covered by award conditions, although it would end the Australian Industrial Relations Commission's role in award making. He had "canvassed" the plan with the Government over the past few months, he said. The Business Council of Australia said it endorsed the Government's consideration of the corporations power, and it endorsed the concept of a unitary system. "It would be preferable for the single system to be achieved by agreement among the Commonwealth and the States," Mr Ken Moss, the chairman of the BCA's workplace relations taskforce, said. Ms Nicole Feely, chief executive of the Victorian Employers Chamber of Commerce and Industry, said she supported the introduction of a single IR system, provided the Government found a way to cover unincorporated enterprises. She said there could be a problem in States like Victoria, which had already transferred their IR powers to the State. "There should be a single system; one that's clear and simple is preferred," she said. "If the corporations power can deliver it then we'd be happy to consider it." But Ms Feely questioned what would happen to the role of the Australian Industrial Relations Commission, which she said was "an institution that needs to be treated with some dignity". c This material is subject to copyright and any unauthorised use, copying or mirroring is prohibited. ************************************************************************* This posting is provided to the individual members of this group without permission from the copyright owner for purposes of criticism, comment, scholarship and research under the "fair use" provisions of the Federal copyright laws and it may not be distributed further without permission of the copyright owner, except for "fair use." -- Leftlink - Australia's Broad Left Mailing List mailto:[EMAIL PROTECTED] http://www.alexia.net.au/~www/mhutton/index.html Sponsored by Melbourne's New International Bookshop Subscribe: mailto:[EMAIL PROTECTED]?Body=subscribe%20leftlink Unsubscribe: mailto:[EMAIL PROTECTED]?Body=unsubscribe%20leftlink
