End the conflict, embrace a new co-operative era

Remember the Morrison government’s 2019 ‘‘Co-Operative Workplaces’’ discussion paper? Its launch was low-key enough, but amid the ongoing deaths, and the economic and social misery COVID has visited upon Australia and the world, countless public policy questions have been rendered obsolete, until now.

Granted, there is an important debate unfolding around the size and duration of the JobKeeper and JobSeeker packages. After initial unity, our major parties are unveiling duelling visions around what a post-crisis economy might resemble: Scott Morrison and Josh Frydenberg’s ‘‘snapback to normal’’, ‘‘economy out of ICU’’ approach versus Anthony Albanese’s ‘‘a once-in-a-generation chance to shape our economy so it works for people and deepens the meaning of a fair go’’.

Albanese’s approach seems to capture the national zeitgeist. Federal Labor’s problem, however, is it has ‘‘won’’ some of the big policy debates of the past two decades, but triumphed in only two of the past nine elections. If it cannot win the debate and an election over mass unemployment and economic insecurity not seen since the Great Depression, it is in major strife.

Which brings us to the Prime Minister’s National Press Club address yesterday, in which he noted COVID-19 has seen business and organised labour unite to save jobs and people’s livelihoods. Aside from announcing a major plan to reboot the all-important TAFE system, and shelving its unionbusting Ensuring Integrity Bill, Morrison declared his government’s intention to pursue an Accord 2.0, bringing together unions, employer groups and businesses in working groups until October to reform our industrial relations framework.

Overseen by Industrial Relations Minister Christian Porter, the aim of JobMaker is to ‘bring people together ... No one side has all the answers. Employees or employers. Unions or employer organisations. It is not beyond Australians to put aside differences to find cooperative solutions to specific problems’’. Can the government transcend ideology and make this a reality?

We have a once-in-a-generation opportunity to build a new Bob Hawke-inspired Accord between business and labour to reboot growth and productivity and prepare us for future crises, rather than perpetuate a tired, old cycle of industrial conflict. It is the antithesis of calls made last week by the Australian Industry Group, a major employer lobby group, for radical workplace deregulation. The AIG’s chief executive Innes Willox urged the Morrison government to simplify industrial awards setting pay and conditions for millions of workers; clarify which employees are casuals; ban unions from involvement in enterprise agreement bargaining between workers and businesses unless the union already represents those workers, and water down the ‘‘better off overall’’ test.

Willox’s proposals are bad policy

– tired and old – and bad politics given our current situation. It is a recipe for more conflict. In the face of COVID and pre-existing economic problems, now is the time to fundamentally reform workplace culture and reform must begin with boosting co-operation. In Christian Porter’s words, to ‘‘view and treat workers as assets, rather than merely as a cost of production’’ and give ‘‘workers a voice in the decision-making process’’. The latter is sorely needed. Australia performs poorly in management capability because of our inadequate workplace collaboration. The World Economic Forum ranks Australia 66th in terms of labour-employer cooperation, next to Uganda and Cambodia.

As a first step, employees should be represented as directors on company boards – a permanent Accord 2.0. Companies would better reflect all stakeholders on executive pay, strategy, operational issues, and shift away from an obsession with short-term profits. It is the perfect vehicle to ensure ‘‘working from home’’ operates fairly and effectively and is also the basis for matching skills and training to a transformed labour market.

Codetermination – used in Germany and much of Europe – works because it is a win-win for business and workers. Companies get a better sense of what works on the shopfloor and communication lines are improved. There is less resistance from employees to technological change and greater flexibility in accepting retraining and redeployment opportunities.

‘‘Everybody’s got to put their weapons down,’’ Morrison said on Monday. ‘‘I think that’s what Australians demand.’’ For the nation’s sake, let’s hope the Prime Minister is right.

Nick Dyrenfurth is executive director of the John Curtin Research Centre.