How productive is putting your head in the sand?

The face of workplace relations in Australia has changed significantly over the past decade. Ten years ago, unions held considerably more power than they do today, and employers often coveted every bargaining chip they had

by Craig Donaldson

The face of workplace relations in Australia has changed significantly over the past decade. Ten years ago, unions held considerably more power than they do today, and employers often coveted every bargaining chip they had. In industries where unionism once thrived, many unions are struggling to recruit and retain members. For example, the latest Australian Bureau of Statistics figures put union membership in the mining industry at just over 17 per cent – down from almost 30 per cent a year earlier.

The reasons for this lack of union support are many and varied. While changing workforce demographics and employee expectations have no doubt played a role, the Federal Government’s sometimes overt anti-union line has also played no small part. Chief executives may be rubbing their hands with glee at the thought of less industrial relations red tape and the Government taking more (if not full) control of setting minimum wages when it takes control of the Senate in July. While unions have been the first to ring the alarm bells over this prospect, employers do have to walk a fine line here.

Younger generations are much more fickle when it comes to employer loyalty, and many organisations have already witnessed their willingness to walk if they feel they’re not being treated fairly. The ageing of the workforce is setting in, and in 2008 more people will exit the Australian workforce than will enter it. And some organisations are already having trouble finding enough workers to simply meet productivity targets – a trend that is only going to worsen.

These are very real issues for Australian employers. I suspect, however, that until it hits them in the face, chief executives won’t be too concerned about them. Likewise, the Federal Government has known about these issues for a good number of years but failed to do anything about them. Only now is it beginning to express concern. Given the current nature of its proposed workplace relations changes, it seems largely happy to pay lip service to these issues rather than put in place real and meaningful solutions.

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