This may present Labour with a natural wedge to be used on Abbot’s battlers, those middle Australians who are drawn to his position on asylum seekers and climate change. The underlying antipathy of the battlers toward onshore processing and a carbon tax is the perception that spending on such issues reduces the amount of revenue available to be spent on everyday Australians. Basically, the battlers have a canny ability to perceive whether or not macro policies will provide them with any personal financial benefit and, if it ain’t so, they are probably fairly unlikely to support it.
Enter productivity gains. One of the arguments in restoring Australia’s levels of productivity is further deregulation of the workforce, which in the current Australian context refers to the re-introduction of individual workplace agreements. While the inclusion of a “no-disadvantage clause” in these agreements may or may not address potential unfairness, it remains clear that the underlying reason for employers to support AWA type arrangements is that is provides them with the upper hand – an employer, with access to legal, HR and managerial expertise, is always likely to be in a stronger bargaining position than an individual worker. It follows that one way of improving the profitability of a business is to pay your labour force less, so it’s no wonder that some employer groups are supporting to re-institution of AWAs.
The productivity argument is that sectors like manufacturing or heavy industry are increasingly untenable in Australia due to the “inflexibility” of our labour market arrangements and that our productivity in these sectors is declining relative to the rest of the world. Accordingly, one way to increase the productivity of these sectors is to introduce “flexibility” into the workplace, which is really another way of saying “lets provide ourselves with the opportunity to pay workers less, so that we can remain competitive with the Chinese”.
So here’s a perfect labour wedge – the Liberals can be shown to be seeking to reduce the incomes of “battler” Australians, in order to provide the “big end of town” with fatter paychecks. And, to boot, you can chuck in an xenophobic element as well, by suggesting that working Australians can only remain in employment in these sectors if they are paid as much as a Chinese factory worker somewhere in Guangdong. Perfect!!
Cynicism aside, my problem is that productivity gains seem to be inextricably linked to reducing ordinary Australian’s share of our nation’s wealth – that is, the assertion is that our international competitiveness is dependent upon reducing worker’s rights. Obviously, this doesn’t appeal to my lefty ideological programming. Unfortunately, aside from introducing subsidies or tariff structures, is there actually any way of bolstering these sectors and making them competitive against Chinese and Indian manufacturing and heavy industry? Perhaps, rationally, it may actually be preferable to let these industries go and transition to an economy based on resource exploitation and service provision (which is probably how things are heading naturally anyway).
But of course, such a transition is anathema to the Labour heartland, as evidenced by Doug Cameron’s viscerally appealing “I don’t want us to be country who makes nothing”, or Keating’s banana republic quote. And so we’re back to square one.
Anyhoo, wouldn’t it be just too funny if Abbot’s natural tendency to engage in populist politics not only forces him to bend on this workplace flexibility argument but actually pushes him toward a protectionist stance to ensure the continued support of “the battlers”. Wouldn’t that be hilarious: a party supposedly committed to free market economics but dependent on the support of an inherently self-interested heartland, forced to support direct government intervention to prop up ailing sectors. From the sublime to the ridiculous, and back again…
