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IR reform - these are not radical changes : Comments
By Mike Nahan, published 12/10/2005Mike Nahan argues the industrial relations reforms are not radical but aim to accommodate changes in society.
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The change from 8 to 10 hour shifts in your town is likely to come with a 3 day weekend. So while there may be some disruption of existing schedules there is also a very valuable trade-off that you chose not to mention.
The real value of these reforms will be felt at the very depth of the next recession when the rate of company failures is shown to be less than under previous recessions.
The continued survival of companies, and the jobs of both managers and employees, may well be purchased with reduced pay, reduced hours, or both. But if you have ever seen the devastation that is caused to a one industry town by company failure, you would know that a system that compells fixed conditions in every sort of circumstance is nothing but a cruel, cynical form of Russian Roulette. The chances may only be one in six but if the number comes up then the result is devastating.
And it is no small irony that it is the one industry towns that run the highest risks under the existing system because economies contract most at the periphery. Unlike urban job loss, there is no alternative jobs just up the road. If the company fails the town dies and there is nothing left to restart when conditions improve.
They have most to gain by a framework that allows them to survive the downturns and make good when the economy turns around. This system doesn't force any outcome on worplaces that don't need it. But those that do need it can use it.