An Industrial Relations

System for

Working People

Communist Party of Australia

Published by the

Communist Party of Australia - February 2011

BASIC PRINCIPLES FOR A NEW IR SYSTEM

The Starting Point

Compulsory arbitration existed in Australia for over 100 years. In that time there were a number of changes but in essence it remained the same with the same objectives: to prevent and settle industrial disputes by conciliation or when that failed, by arbitration and enforcement by an industrial Court governed by industrial law outside of the common law and corporate law systems.

Soon after Federation in 1904 the Australian Government on behalf of the ruling class created an arbitration system to control unions and moderate the class struggle (State systems were already in existence). The turbulent time and strike action of the 1890s was firmly in the minds of

Australia‟s bosses and rulers. Trade unions had taken a thrashing at the time and also called for a system of compulsory conciliation and arbitration. The Conciliation and Arbitration system provided for legal registration of trade unions and employer organisations. Arbitration provided awards which were legally binding on trade unions and employers. Awards which tended to cover an industry eventually contained most of the issues related to wages and working conditions that arose in an industry. Despite its role being to prevent and limit strike action compulsory arbitration failed in that objective and in some periods strike action reached high levels.

1

As a consequence the penalties imposed on trade unions

for strike action and for failing to observe decisions of the Court, were steadily increased by both Labor and Liberal (and its predecessors) governments.

Destroying Industry Arrangements

The Hawke Labor Government, elected in 1983 commenced the process of dismantling the centralised award system, a process continued by the Howard Government‟s Workplace Relations Act which limited the scope of awards to 20 “allowable matters”. “Simplified” (i.e. gutted) awards remain a policy objective of Australian governments to this day. The Hawke Government introduced “enterprise agreements” which broke down the dominance of awards as the basic industrial instrument. The flow-on effect of this movement away from all encompassing industry agreements was the introduction of individual contracts, AWAs, and an attempt to enshrine this form of individual contract as the primary means of specifying wages and working conditions. WorkChoices effectively did this and the Australian people through the union and community campaign for “Your Rights at Work” were successful in removing the Howard Government, largely because of their unpopular industrial legislation.

“Awards are subsequently being stripped and further eroded today”

2

The Accord

One of the main features of the Hawke and Keating Government was the advocacy of collaboration between the Government, trade unions and the employers. This process which took the form of a Prices and Incomes Accord (the Accord) relied upon removing basic and

irreconcilable differences between capital and labour. The process could not achieve this but succeeded in disarming the rank and file of the trade union movement who were withdrawn from struggle, particularly strike actions, while trade union leaderships assumed their place at the table negotiating

on behalf of workers under the false illusion that there were common interests between labour and capital. This destructive period of class collaboration resulted in huge decreases in trade union membership density and the loss of wages and working conditions in many areas. The trade union movement is yet to fully recover from this period.

The Your Rights at Work campaign proved to be a positive influence on trade unions and saw a re-engagement of trade union members in the huge campaign to get rid of the Howard Government. The workers who participated

“This destructive period of class collaboration

resulted in huge decreases in trade union membership

density”

3

were interested in get-ting rid of WorkChoices; the removal of the How-ard Government was seen as the way to get rid of Work-Choices. The Howard Government was de-feated but not all the laws associated with WorkChoices were removed and this re-mains a serious point of contention with Australian workers who fought hard to get rid of the laws.

Collective to Individual

The Howard Government took this process of promoting and imposing individual Australian Workplace Agreements (AWAs) to a new level by making this individual form of employment arrangement the very basis of their IR policy. All governments since the Hawke Government have been part of the process of moving away from broader industry type arrangements for workers. The Howard Government accelerated the process toward individualism first with the Workplace Relations Act and then with WorkChoices, which in both cases further increased penalties against trade union activity and introduced more difficult conditions for recruitment and contact with union membership. Many forms of industrial action were for all intents and purposes banned. The Rudd Government further dismantled awards by reducing them to 10 minimum standards and maintaining them purely as a safety net. The Gillard Gov-ernment has continued with this policy through Fair Work Australia.

4

Successive governments have been implacably opposed to any form of industrial action by trade unions and supported and encouraged the use of the penalty provisions. The Rudd and Gillard Governments continued this penalisation of industrial action through penalties for unprotected action and, in the Construction industry maintained the Australia Building and Construction Commission (ABCC). The creation of specific forms of state organisation such as the ABCC was used to control and penalise unions and in-dividual workers. The formation of a state-sponsored group with police powers to monitor construction trade union activi-ties and to spy on individual workers was implemented by Howard and has remained essentially untouched by the Rudd and now the Gillard Labor Governments. The Rudd Government proposed to blend the repressive powers of the ABCC into the new Fair Work Australia regime. This is, in fact, a move toward expanding the repressive powers of the ABCC outside of the building and construction industry. The Greens influence on the new minority government is likely to slow this process and private members bills against the ABCC are possible from the Greens or independents.

Your Rights at Work

Industrial relations was the main issue at the federal elec-tion of 2007, moving many thousands of people to alter their vote and shift towards removing Howard, the Coalition and their WorkChoices laws. The Australian people ex-pected to see the removal of WorkChoices with the removal of Howard and with the ascension of a Labor Government. Many were bitterly disappointed. The Rudd Government did restore collective agreements as the default in the industrial relations system but did not go as far as most workers would like to see. In many other respects, Labor Government industrial legislation under

5

Rudd and now Gillard can be seen from the table below to be very similar to the policies of the Liberals. The Gillard Government has to decide whether to continue with the current restrictions under Fair Work Australia which can re-sult in workers and trade unionists being jailed. The fact that it is a minority government adds weight to the belief of the CPA that a concerted campaign from workplaces, trade unions and the community at large should be built and expanded to ensure maximum pressure is put on the government to implement IR laws in line with community expec-tations. The campaign against WorkChoices demonstrated the power of a united community campaign. We need to learn from this campaign and apply it to the current circum-stances to build union and working class power. We hope you will join with us in this industrial relations debate and in the campaign to ensure Australian workers get the IR laws they deserve after fighting such a valiant and cou-rageous battle against the Howard Government.

CPA Campaigning Demands

Below is a table that summarises the Australian industrial relations system from WorkChoices under Howard to the Gillard government and beyond. The chart provides an easy-to- view means of seeing the inter-relationship of IR matters as society develops. It also highlights the minor changes that the Labor governments have made despite the vigorous efforts of the Australian people in demanding the repeal of WorkChoices. The CPA believes we need to continue to campaign around IR issues to eventually see industrial relations legislation enacted which provides working people with the best opportunity to take on the forces of corporate greed prevalent in society today. Campaign points can be seen on the chart under the column “current CPA policy/campaign objectives” and they can be summarised by the points below:

6

Collective bargaining as an absolute right for all workers, to be negotiated between trade unions and employer organisations with rank and file involvement. Individual contracts to be abolished and replaced by collectively bargained agree-ments;

1. Collective agreements to cover all workers in an industry. NO restrictions on pattern bargaining;

2. The right to strike to be incorporated in law;

3. Trade Unions to have right of entry to workplaces to represent workers and to organise the workforce in appropriate forms;

4. Legislation banning secondary boycotts and strike action be repealed;

5. The abolition of „Greenfield‟ agreements*

6. Legislation targeting a specific union such as the Aus-tralian Building and Construction Improvement Act, the legal framework for the ABCC be repealed;

7. Labour shortages to be overcome by skills training of Australian workers as the priority. The importation of guest workers be arranged through international cooperation and international agreements between trade unions and by agreement between Australia trade unions, employer organisations, and the Federal Government. Guest workers to be guaranteed established Australian rates of pay and conditions;

8. An Industrial Relations Commission be retained with appointments to the Commission comprising an equal number of trade union and employer representatives;

The Commission to have powers of conciliation but not arbitration except by agreement. The reference of a dispute to the Commission to be a last resort;

The Conciliation Commission not to have power to make orders or impose penalties.

7

ISSU

E

WO

RKCH

OIC

ES

G

iILLAR

D G

OVERN

MEN

T

CU

RREN

T C

PA P

OLIC

Y/

CAM

PAIG

N O

BJE

CTIV

ES

PEO

PLES G

OVERN

MEN

T

SO

CIA

LIS

M

Colle

ctiv

e

Barg

ain

ing

Ero

sion o

f C

ollective

Barg

ain

ing t

hro

ugh

the intr

oduct

ion o

f AW

As

(indiv

idual

contr

act

s)

No r

ights

to C

olle

ctiv

e

Barg

ain

ing

Majo

rity

in w

ork

pla

ce

Co

lle

cti

ve

B

arg

ain

ing

is

enfo

rced 5

0%

+ 1

Colle

ctiv

e B

arg

ain

ing

is e

nte

rprise

base

d

Colle

ctiv

e B

arg

ain

ing

as

abso

lute

rig

ht

Rem

ove c

apaci

ty f

or

non-u

nio

n

barg

ain

ing

Move t

o b

roader

patt

ern

barg

ain

ing a

s a m

eans

to

stre

ngth

en indust

ry

wid

e a

gre

em

ents

Indust

ry b

ase

d +

loca

l expanded n

egotiations

Indust

ry b

ase

d a

nd

wid

er

Hig

her

leve

l of le

gisla

ted

work

ing c

onditio

ns

and

rights

Aw

ard

Aw

ard

s lim

ited a

nd

stripped

Set

up t

o b

e f

urt

her

stripped in t

he f

utu

re

Safe

ty N

et

only

fiv

e

min

imum

conditio

ns

Safe

ty N

et

only

ten

min

imum

conditi

ons

furt

her

stripped a

nd

ero

ded

Indust

ry w

ide

colle

ctiv

e agre

em

ents

Conditio

ns

gain

ed b

y

a m

ajo

rity

of

w

ork

ers

to b

e

legis

late

d (

sim

ilar

to

aw

ard

conditio

ns

prior

to a

ward

st

rippin

g p

roce

sses)

Legis

late

d I

ndust

ry

wid

e c

olle

ctiv

e

agre

em

ents

Soci

alis

t la

ws

would

pro

tect

work

ers

rights

and

entitlem

ents

8

ISSU

E

WO

RKCH

OIC

ES

G

iILLAR

D G

OVERTM

EN

T

CU

RREN

T C

PA P

OLIC

Y/

CAM

PAIG

N O

BJE

CTIV

ES

PEO

PLES G

OVERN

MEN

T

SO

CIA

LIS

M

Fre

edom

of

Ass

oci

ation

FO

A u

sed t

o

stre

ngth

en p

osi

tion o

f

non-u

nio

nis

ts

Slig

ht

impro

vem

ents

in

FO

A d

ue t

o t

he

stre

ngth

ened

colle

ctiv

e b

arg

ain

ing

posi

tion b

ut

no r

eal

changes

FO

A s

hould

pro

tect

unio

nis

ts f

rom

dis

crim

ination

FO

A w

ill p

rote

ct

unio

nis

ts f

rom

dis

crim

ination

Beco

mes

irre

levant

Sco

pe o

f Agre

em

ents

Lim

ited b

eca

use

of

pro

hib

ited c

onte

nt

i.e.

dis

allo

wed m

att

ers

re

lating t

o t

he

rela

tionsh

ip b

etw

een

unio

n a

nd e

mplo

yer

Gre

ate

r sc

ope b

y

reduct

ion o

f

dis

allo

wed m

atters

Agre

em

ents

genera

lly

ente

rprise

base

d

Any c

onte

nt

Indust

ry w

ide

agre

em

ents

should

be

sought

Any c

onte

nt

Indust

ry w

ide

agre

em

ents

should

be

sought

Any

conte

nt – s

ocialis

t in

natu

re

Agre

em

ents

to b

uild

on s

oci

al develo

pm

ent

and m

ore

bro

adly

deal

with a

nd incl

ude s

oci

al

issu

es

Unio

n R

ights

Rest

rict

ed o

r re

moved

none t

o lim

ited

Less

lim

ited t

han

Work

Choic

es

Seco

ndary

Boyco

tt

pro

vis

ions

Rig

ht

to s

trik

e

Rig

ht

of

entr

y

pro

vis

ions

O

rganis

ing r

ights

(See r

ele

vant

sect

ions)

Full

Unio

n R

ights

Full

Unio

n R

ights

9

ISSU

E

WO

RKCH

OIC

ES

G

iILLAR

D G

OVERN

MEN

T

CU

RREN

T C

PA P

OLIC

Y/

CAM

PAIG

N O

BJE

CTIV

ES

PEO

PLES G

OVERN

MEN

T

SO

CIA

LIS

M

Rig

ht

of

Entr

y

Lim

ited in s

cope

Lim

ited in s

cope

Full

Rig

ht

of

Entr

y

Full

Rig

ht

of

Entr

y

Full

Rig

ht

of

Entr

y

beco

mes

a non-iss

ue

Org

anis

ing

rights

Lim

ited a

nd r

em

oved

from

agre

em

ents

Crim

inalis

ation o

f

unio

ns

Curr

ent

rem

oved

conte

nt

to b

e

re-intr

oduce

d into

agre

em

ents

Crim

inalis

ation o

f

unio

ns

(see A

BCC)

OH

S &

Tra

de U

nio

n

dele

gate

s tr

ain

ing a

nd

com

mitte

e m

eetings

be p

aid

and in w

ork

tim

e

Rig

hts

to r

epre

sent

and o

rganis

e

guara

nte

ed in law

Expanded t

rade u

nio

n

and w

ork

er

rights

guara

nte

ed in law

Full

unio

n r

ights

guara

nte

ed in law

Negotiating

Em

plo

yer

alo

ne

(Gre

enfield

s*)

Unio

n c

olle

ctiv

e

Non-u

nio

n c

olle

ctiv

e

* „G

reenfie

ld‟

refe

rs to

th

e

situ

atio

n

wh

ere

a

co

mp

an

y s

ign

s a

n

ag

ree

-m

ent

with

itse

lf

and

a

u

nio

n

tha

t it

h

as

ch

ose

n

to

rep

rese

nt

wo

rke

rs

in

ord

er

to

get

the b

est

o

utc

om

e f

or

the

co

mp

an

y a

nd

infe

rior

pay

and

/or

co

nd

itio

ns fo

r th

e

wo

rke

rs.

Em

plo

yer

alo

ne

(Gre

enfield

s*)

Unio

n c

olle

ctiv

e

Non-u

nio

n c

olle

ctiv

e

Abolis

h G

reenfield

s*

agre

em

ents

Rank a

nd file

part

icip

ation w

ith

unio

n o

ffic

ials

in

unio

n c

olle

ctiv

e

agre

em

ent negotiations

Rem

ove n

on-u

nio

n

colle

ctiv

e a

gre

em

ents

Rank a

nd f

ile

part

icip

ation in u

nio

n

colle

ctiv

e n

egotiations

Govern

ment

(Sta

te)/

em

plo

yer/

rank a

nd f

ile

& u

nio

n o

ffic

ials

all

part

icip

ate

in

negotiations

10

ISSU

E

WO

RKCH

OIC

ES

G

iILLAR

D G

OVERN

MEN

T

CU

RREN

T C

PA P

OLIC

Y/

CAM

PAIG

N O

BJE

CTIV

ES

PEO

PLES G

OVERN

MEN

T

SO

CIA

LIS

M

Rig

ht

to s

trik

e

Lim

ited t

o b

arg

ain

ing

period

Lim

ited t

o b

arg

ain

ing

period

Rig

ht to

str

ike to

defe

nd w

ork

ers

posi

tion

Rig

ht to

str

ike d

uring

barg

ain

ing p

eriods

Rig

ht

to s

trik

e a

round

polit

ical dem

ands

Rig

ht

to s

trik

e

Rig

ht

to s

trik

e

guara

nte

ed in law

AW

As

Indiv

idual st

atu

tory

agre

em

ents

are

the

basi

s of

the s

yst

em

Rem

ove

sta

tuto

ry

indiv

idual

contrac

ts

Com

mon law

EBAs

Com

mon la

w in

div

idual

co

ntr

act

s

Colle

ctiv

ely

Barg

ain

ed

agre

em

ents

as

prim

ary

fo

rm o

f in

dust

rial

Inst

rum

ent

Abolit

ion o

f AW

As

Abili

ty t

o t

erm

inate

an

AW

A o

r in

div

idual

contr

act

a w

ork

ers

pre

rogative

Colle

ctiv

e b

arg

ain

ing

only

Beco

mes

non iss

ue

with g

enera

lly

legis

late

d r

ights

11

ISSU

E

WO

RKCH

OIC

ES

G

iILLAR

D G

OVERN

MEN

T

CU

RREN

T C

PA P

OLIC

Y/

CAM

PAIG

N O

BJE

CTIV

ES

PEO

PLES G

OVERN

MEN

T

SO

CIA

LIS

M

Aust

ralia

n

Indust

rial

Rela

tions

Com

mis

sion

(AIR

C)

Str

ip p

ow

ers

to a

ct

independentl

y (

even

in a

ppeara

nce

) Enfo

rce p

enaltie

s on

unio

ns

Polic

e u

nio

ns

Slig

htly

incr

eas

e

concilia

tion a

nd

arb

itra

tion p

ow

ers

during b

arg

ain

ing

periods

Main

tain

penalty

pow

ers

again

st

unio

ns

Rem

ove p

enal pow

ers

again

st u

nio

ns

Conci

liation &

arb

itra

tion last

reso

rt

Mai

n is

sue is

rem

ova

l of

penal pow

ers

Cam

paig

n a

round

appoin

tments

and

politically b

iase

d

natu

re o

f th

em

Appoin

t unio

n/w

ork

er

re

pre

senta

tives

(not

ALP r

epre

senta

tives

but

from

unio

ns

th

em

selv

es)

All

indust

rial m

att

ers

to

be d

ealt w

ith b

etw

een

part

ies

firs

tly t

hen in

the A

IRC if

nece

ssary

Rem

ove a

ny c

apaci

ty t

o

have m

att

ers

dealt w

ith

in t

he F

edera

l/su

pre

me

or

oth

er

com

mon law

ju

risd

ictions

Rem

ove p

enal

Pow

ers

Conci

liation &

arb

itra

tion a

s a last

re

sort

Appoin

t unio

n/w

ork

er

re

pre

senta

tives

Rem

ove p

enal

Pow

ers

Conci

liation &

arb

itra

tion a

s a last

re

sort

Consi

der

the s

oci

alis

t

eco

nom

y a

nd s

tate

in

all

matt

ers

Appoin

tments

in

acco

rdan

ce w

ith

work

ing c

lass

rule

12

ISSU

E

WO

RKCH

OIC

ES

G

iILLAR

D G

OVERN

MEN

T

CU

RREN

T C

PA P

OLIC

Y/

CAM

PAIG

N O

BJE

CTIV

ES

PEO

PLES G

OVERN

MEN

T

SO

CIA

LIS

M

Unfa

ir D

ism

issa

l N

one t

o lim

ited

capaci

ty f

or

unfa

ir

dis

mis

sal

Lim

ited c

apaci

ty b

ut

not

work

er

frie

ndly

Str

ength

en t

o a

ll w

ork

ers

and im

pro

ve

by legis

lation t

he

pow

ers

to r

e-inst

ate

and c

om

pensa

te

work

ers

Str

ength

en t

o a

ll w

ork

ers

and im

pro

ve

by legis

lation t

he

pow

ers

to r

e-inst

ate

and c

om

pensa

te

work

ers

Soci

alis

t la

ws

would

pro

tect

work

ers

Labour

Short

age

457 v

isas

to

underm

ine w

ork

ing

conditio

ns

for

lo

cal w

ork

ers

and a

new

way o

f sl

avery

fo

r guest

work

ers

Monitor

457’s

but

not

curt

ail

explo

itative

natu

re o

f guest

w

ork

ers

vis

as

Tra

inin

g/s

kill

D

evelo

pm

ent

Solid

arity

pact

s

betw

een u

nio

ns

made

on inte

rnationalis

t and

coopera

tive b

asi

s In

tern

ational

coopera

tion a

nd

solid

arity

Inte

rnational

coopera

tion

Tra

inin

g a

nd s

kill

develo

pm

ent

Solid

arity

pact

s

betw

een u

nio

ns

made

on inte

rnationalis

t and

coopera

tive b

asi

s

Inte

rnational

coopera

tion

Tra

inin

g a

nd s

kill

develo

pm

ent

Solid

arity

pact

s

betw

een s

tate

s m

ade

on inte

rnationalis

t and

coopera

tive b

asi

s

Aust

ralia

n

Build

ing a

nd

Const

ruct

ion

Com

mis

sion,

ABCC

Em

pow

ere

d

aggre

ssiv

e a

nd

intim

idato

ry

2010 –

pow

ers

expanded into

fair

work

Aust

ralia

m

asq

uera

din

g t

he

repre

ssiv

e n

atu

re o

f ABCC

Abolis

h

Abolis

h

Would

be n

o n

eed for

the A

BCC o

r any o

ther

state

sponso

red

org

anis

ation w

ith

polic

e p

ow

ers

13