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WorkChoices - not so good: Fair Work Australia - frightening! : Comments
By Des Moore, published 10/10/2007Whichever party is elected the outcome on workplace relations will be retrograde.
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What kind of fairy land is the author of this article living in? There is a significant portion of the workforce who only have their current pay and conditions because of regulation. Remove the regulation and the already existing downward forces will cause a decrease in pay and conditions.
What makes the situation worse, is that these workers are the most likely to lack the negation skills, market knowledge and financial stability to be in position to have any effective input into an agreement. Leaving individual employees to negotiate by themselves will lead to many hard working and productive employees, who lack 'business' skills being paid well under below their worth. Forcing (through employment market signals) employees to become highly business savvy and keep up to date with their market knowledge will shift significant resources away from training in core productivity skills, reducing real productivity and damaging the economy.
A further point is that 'market value' does not represent 'fair value' in the labour market. It can be reasonably argued that the supply and demand economics of low skill labour results in a low wage when compared to the market value of the goods or services produced. Why should businesses gain a disproportionate portion of the money?
Simply put, a free market is not an appropriate mechanism to govern the wages and conditions of low skilled labour. While it's certainly undeniable that unions have had some significant negative impacts, it seems increasingly common to not acknowledge the many positive impacts they've had as well. What's need is a balanced system, not more extremism such as what is proposed in this article.