FED:IR review 'must centre on productivity'

AAP General News (Australia)
12-20-2011
FED:IR review 'must centre on productivity'

By Andrea Hayward

CANBERRA, Dec 20 AAP - A review of Labor's Fair Work laws must centre on productivity
and competitiveness, employers and industry say.

Workplace Relations Minister Bill Shorten announced on Tuesday that RBA board member
John Edwards, Justice Michael Moore and workplace relations academic Ron McCallum would
conduct a review of the Fair Work Act.

It is the first biannual review since the Act was fully operational and a requirement
under the system, which replaced the coalition's unpopular WorkChoices regime.

Just 120 hours into the job when he announced the details of the review, Mr Shorten
said it would be an evidence-based assessment of the operation of the Fair Work legislation
consistent with the objects set out in the Fair Work Act.

It would ensure employees and employers regardless of the size of the business were
getting a "fair go".

A deal between Qantas and its engineers this week following the airline's decision
to lock out its employees proved it was possible for outcomes to be achieved with effort
and will, he said.

Australian Industry Group chief executive Heather Ridout said employers would be looking
for real outcomes to support the competitiveness of businesses in coming years ahead of
volatile economic times.

"Consistent with this challenge, the test of the review will be the extent to which
its outcomes support increased productivity and flexibility, reduce red tape and improve
competitiveness," Ms Ridout said.

"The panel members have an onerous responsibility presiding over the review at a time
when Australia's competitiveness is declining and, integrally, productivity is flat-lining."

Opposition workplace relations spokesman Eric Abetz said the terms of reference had
left out vital ingredients.

"I would invite Bill Shorten to reconsider as to whether these terms of reference do
address the real needs of Australia in the 21st century.

"If you are going to mention specific issues in the terms of reference worthy of specific
mention, why on earth would you not refer to productivity which is decreasing on Labor's
own figures?"

Australian Chamber of Commerce and Industry chief executive Peter Anderson said business
ultimately expected the government to make necessary changes before it gave the thumbs
up.

"This is a review that is well and truly overdue because the government has not got
the balance right," Mr Anderson told reporters in Canberra.

"Its Fair Work laws have proven a significant disconnect between the conditions of
industry and the government's own ambition."

Resource industry employer group AMMA boss Steve Knott said the review was a great
opportunity to ensure Australia had effective and productive workplace laws ahead of a
large round of bargaining by resources employers.

The power of monopoly unions in making agreements for new projects had resulted in
excessive cost blow-outs and delays to major projects, with 40 per cent wage increases
in the last 12 months," he said.

The panel will report to the government by May 31, 2012.

AAP ah/wf

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