Nick Minchin's claim that 'our workplace relations policy last time set out the goals for the current laws' is partially correct. Technically speaking, the Liberals have long advocated removing unfair dismissal laws and constructing the labour market system around AWAs. However, the key question is the degree to which those reforms were impressed upon the Australian public.
The big change on unfair dismissal was the scope to which Howard's exemption applied. The Democrats had beaten back forty-one attempts to introduce laws abolishing unfair dismissal claims for small business between 1996 and 2006. However, the figures presented to the Democrats limited this exception to ten employees. Workchoices applies the exemption to all business employing less than a hundred people.
The key change on AWAs was the removal of the no disadvantage test. Prior to 2006, all AWAs had to meet a no disadvantage test. This test meant the employee did not suffer a disadvantage in comparison with the relevant award. In announcing the abolition of the test, the Coalition described it as 'absurd' and 'ridiculously complex'. The pale attempt to diffuse the furore these changes provoked, the so-called 'Fairness Test', merely provided for employees to receive compensation for lost conditions including leave and penalty rates. The catch was that this compensation need not be monetary and had to be determined on a case by case basis.
This arrogant view that the electorate granted the Coalition has aroused concern that governments not be given such arbitrary power in future. This is demonstrated by polls suggesting the Greens are getting traction as the party to hold the balance of power in the Senate. Rudd's approval rating seems to not be giving him the type of blank cheque voters offered a Coalition government running on 'keeping interest rates low' and border security. It is a loan that he has taken out on promises of taking concrete action on climate change, restoring the position of employees in the labour market, fixing the health system and improving the position of 'working families' on housing affordability, rents, grocery and petrol prices and child care.
The big question will Rudd have the political capital to pay up when the voters collect their debts.
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