Our national political conversation is littered with words that have lost their meaning: ‘fighting for peace’, ‘protecting our borders’, ‘truth in sentencing’, the list goes on.

Cartoon by the Daily Telegraph's Warren Brown

When it comes to the economy – ‘productivity and flexibility’ are two more benign, if somewhat bland, words that have been abused so horribly it is now tough to remember what they originally meant.

Often I read the commentary pieces in newspapers about these issues that make grand claims about the virtues of productivity and flexibility, a panacea to every business problem, a self-evident good.

And I wonder who the authors are talking to – where they are getting their information – because they aren’t talking about the issues workers talk to me about, or the issues people who actually run real businesses talk to me about.

Because when it comes to the way Australians work, productivity and flexibility’ have come to be terms that cause justified anxiety.
Unfortunately for many workers their experience of “productivity” and “flexibility” in the workplace has translated as “insecurity” - temporary work and volatile income. 

Recently, the Prime Minister declared that one of her aspirations in government was to rescale the ‘productivity’ peaks of the Hawke-Keating era.

If this means creating an economy based on well-designed, well-managed jobs that deliver better returns to the business, the economy and the worker, then ‘productivity’ is an admirable ambition.

Unions share the government’s aspiration to lift productivity after it languished during the Howard years. For this to be feasible, however, employees need to be fairly rewarded for their efforts.

It is not a tough equation to get your head around: higher labour productivity will be encouraged when workers feel they will share fairly in the rewards of growth.

At the moment that is just not happening. We have seen productivity rise faster than wages, resulting in real unit labour costs hitting an all-time low of more than 17 per cent below what they were during the mid-1980s.

It is no coincidence that productivity growth has been sluggish during a period of strong downward pressure on wages and unfair IR laws.

So, how do we get Australia back up to those productivity peaks of the 1990s?

We could start by recasting collective bargaining as a friend to productivity, instead of an enemy.

The reasoning is simple: only a group of employees can offer real and meaningful productivity gains to an employer in exchange for a fair share of the reward.
A single employee can cut no such bargain.  It has now been proven that fragmenting and isolating individual workers and cutting them off from unions does not lift productivity. 

Now to that other poor, abused term: flexibility. On its face, no one should have any opposition to increasing workplace flexibility – who wants to work in rigid, inflexible ways?

But the term has been co-opted by some employer groups and businesses to simply mean “flexibility to lower wages and conditions”.

If we are going to talk about flexibility, it should not be at the expense of rights, fairness and proper workplace protections.  Nor should it be a code word for more outsourcing, more use of labour hire companies, more casual work.

Flexibility is a two-way street. Workers also need flexibility, so they can balance their job with their commitments outside of work. Getting this balance right will open the door to better productivity.

Indeed, if there is one area where we need more flexibility in workplace relations, it is around bargaining.

Bargaining is currently restricted to a limited range of matters. This prevents workers from bargaining on a range of issues that are vital to their interests. If those calling for increased flexibility were consistent, they would be encouraging more bargaining, more often.

Of course all working Australians want workplaces that allow them to get more out their working day and have more freedom in how they structure their working life. If these are the definitions of ‘productivity’ and ‘flexibility’ we are all for it.

But if the words simply mean taking away rights and doing more with less, then this is a very different debate.

Words matter – their meaning matter – and if we want to have a decent debate about the Australian workplace we need to agree on the definitions first.

Don’t miss: Get The Punch in your inbox every day

Get The Punch on Facebook

113 comments

Show oldest | newest first

    • Nigel Catchlove says:

      05:02am | 01/11/10

      “Unions share the government’s aspiration to lift productivity after it languished during the Howard years.” Really?  Perhaps you could use container handling rates on our docks as an example ... oh, that’s right.

    • MarK says:

      07:44am | 01/11/10

      I endorse this comment. Great work Nigel

    • Reg says:

      08:09am | 01/11/10

      Without the facts, your words, along with MarK’s, remain weasel words.

    • acotrel says:

      10:33am | 01/11/10

      John Howard sent the Cole Royal Commission to Melbourne on a union bashing witch hunt in the construction industry.  They found that on all construction sites there were three unions cooperating on safety, doing JSAs, and looking for better ways to work.  Compared to year 2001, when there was a deasth about every tw o weeks, the incident rate had dropped dramatically, giving employers an unfunded productivity gain.  Starangely the Cole Royal Commission didn’t have much t o say about that, nor did John Howard.  Ho0ward then introduced Workchoices which shifted the power balance in the workplace, and undermined the productivity gain, by destroying industrial democracy!  Today the GRUBS in the construction industry use unqualified ‘tradesmen’ in an attempt to undermine the unions.  And when the union is gone, the pay rates and conditions will be devolved, and the scabs will get their turn to be shafted.

    • Gregg says:

      10:51am | 01/11/10

      Acotrel!, that 2001 must have been a hard hard year for you.
      But look we expect no less vitriole from you making every discussion you can find a political one and no doubt you will still be blaming Howard for 2001 in 2021.

    • Jim says:

      11:14am | 01/11/10

      How about you tell more of the story than what is in your CFMEU manual acotrel?? The commission came about after in-fighting within the various unions came to a head and your own John Sutton cast allegations of criminal activity - a royal commission was a foregone conclusion.
      Somehow Cole didn’t find evidence of “organised crime”, but he did find plenty of evidence of senior union officials taking secret commissions, fund trustees misusing funds set up to cover employee entitlements, bribery, coercion, intimidation, breaches of the freedom of association act, criminally corrupt conduct and (this will tickle you) misuse of occupational health and safety procedures to cause major dispruptions to a site.

    • Brad of Bentleigh says:

      12:26pm | 01/11/10

      She’ll leave a lot of relevant detail out of the article, Nigel. ACTU pres… say no more.

    • Jeff says:

      06:51pm | 01/11/10

      What I find interesting about the demonisation of unions by people like Nigel (based on specific incidents rather than any sort of broad evidence across the spectrum of unionism) is that businesses are not demonised in the same way despite the plethora of evidence of dodgy businesses - ranging in size from the dodgy plumbers etc we see on A Current Affair, through to the mammoth scale Enron-style corruption and rorting. Why is that?  Is there a subconscious belief that workers are impudent for banding together to protect themselves?

    • Nigel Catchlove says:

      08:10pm | 01/11/10

      Jeff, you make a good point, although I haven’t and don’t ‘demonise’ unions.  The comment was a reflection of the broad generalisations used by the author.  To suggest broadly that productivity languished during the Howard years is making use of a simplistic and lazy rhetorical generalisation and I pointed to one (of many) examples where the exact opposite was true.  I would never be so bold as to suggest that all business people are inherently good - there are some who ethically challenged and trade unions have an obligation to expose and force change on those businesses.  It’s really a matter of the ACTU President expressing a collectivist view along the lines of some unions are doing good things therefore all are assumed to be good, and some business people are screwing their workers - therefore all are assumed to be bad.  Frankly neither statement is true and readers of The Punch deserve better than this article.

    • acotrel says:

      06:30am | 05/11/10

      In the fifties Australian industry had tariff protection, and it was obviously needed.  The fact of the matter is that Australian manufacturers could never compete adequately in a free market economy.  So the impetus had been to drive wages and conditions down to the lowest common denominator - third world levels!  Australian industry even finds it difficult to become innovative, and compete on the basis of superior quality.  So workers pay the price of employers with their heads up their backsides!

    • Eric says:

      05:10am | 01/11/10

      Unions erode my working rights. Unions insist on being able to tell me when I should work, for whom, for how long, under what circuimstances, and how much I should be paid. Then they have the gall to demand money from me.

      At work I have one boss, who actually pays me for what I do. Why do I need another boss, who insists on taking money away from me?

    • Reg says:

      07:23am | 01/11/10

      Oh dear I just went off Eric.

      Much of my working life consisted of concentrating on the task, despite short sighted management and associates left and right. Only when the goal had been achieved and shown in all its glory did both stand in bewildered awe and appreciation. Unions have only ever assisted me in the past in achieving the goals of the industry in which I have worked. Most of the negative associates also spent a lot of time badmouthing unions for the same reason they could never achievedat work. Total lack of imagination.

    • Caveat emperor says:

      07:45am | 01/11/10

      Yes, and I’m sure in your world your boss is always fair and will always pay you more more more and this reflects the effort you put in and the cost of living etc

      One person is always effective agains tthe big machine in your world.

      Good luck with that.

      My boss tries the same thing with me. So I leave and get a better job with more money and they wonder why their turn-over rate is so high and productivity is so low. They refuse to bargain fairly.

    • James Hunter says:

      07:01pm | 01/11/10

      eric,
      you are then one of a very small and very fortunate group.
      a man happy with the way his boss treats him. Hmmmm
      are you realy ok eric? are myou sure ?

    • Christian Real says:

      04:11am | 02/11/10

      Eric
      If you are unhappy with the pay rises that the Union gets for you,then don’t accept them,give back the extra money going into your pay packet.
      Unlike you, I find the $9 a week deduction to the Union,money well spent

    • TrueOz says:

      05:45am | 01/11/10

      I am an employer who finally got completely pissed off with the governments ideas for enhanced ‘productivity and flexibility’ in the workplace about three years ago. I once had a staff of 22 in Australia. I now have none. The workers of the Philippines and India have asked me to pass on their thanks to Santa Kev, Joolya, and the various short sighted imbeciles who preceded them for bringing more, and better paying jobs to their respective countries.

    • Markus says:

      08:34am | 01/11/10

      And of course you are passing these savings in wage payments on to your consumers back here in Australia?
      Didn’t think so.

    • Christian Real says:

      09:53am | 01/11/10

      TrueOz,  what a fake name for a fake person and a fake Australian like yourself, selling out Australian workers and getting cheaper labour from overseas.
      The money paid to these overseas workers don’t stay in, or benefit this Country which you call home and obviously have your business.

    • James1 says:

      09:53am | 01/11/10

      TrueOz, the true patriot.

    • TrueOz says:

      10:14am | 01/11/10

      @Markus

      Thanks for the implied advice - but no - I actually increased my prices. I have been able to charge more because of increased productivity as a result of the less restrictive work practices I now have to deal with.

      @Christian Real

      I no longer really think of Australia as home - just one place amongst the many in which to do business. Australian workers sold themselves out, aided and abetted by bureaucracy and the union movement.

      @James1

      Thanks for the recognition! grin

    • Gregg says:

      10:45am | 01/11/10

      @ Markus and Christian Real,
      What Ged has not raised is the elephant in the room that no one wants to raise and that’s global competitiveness and yes something that all governments will probably not turn their back on until a massive shift in international trading conditions is needed.
      If you have trouble getting your mind about that, think of a worker in Vietnam getting about $15/month [ probably a tad higher theses days ] or whatever a factory worker might get in the Phillipines, China , India etc.
      We can have all the false productivity, manufactured figures may suggest but whilst it is still possible to ship, the disparity in labor rates between developed, developing and undeveloped nations will continue to erode employment and so we can aspire to whatever productivity would seem appropriate for all the good it will do.
      And for shipping, even without oil, who do you reckon will man the sailing clippers or nuclear powered vessels and who will still be doing the tedious manual work?, yep just those lowly paid grateful to have a job.
      It may not be fair is it on those workers, nor our own unable to work! and is the answer obvious?
      As obvious to limiting free trade to between countries with like employment/manufacturing conditions enforced!
      And what will union organisers want to do about it?
      They’ll just keep negotiating until they get elevated into parliament!

    • newnewshound says:

      10:56am | 01/11/10

      TrueOz? Don’t think so. Mr FastBucks? Mmm, that sounds about right.

    • James1 says:

      11:06am | 01/11/10

      TrueOz,

      To be honest, I have no problem with what you have done, being a believer in neoliberal economics.  In any case, the Indians, Filipinas and Filipinos you employ probably appreciate the money far more than the Australian formerly in your employ.

      My point was more that you should think about changing your online name, though.  “Former TrueOz” sounds appropriate.

    • Scot says:

      11:23am | 01/11/10

      LOL, Reading all these inane comments by these Union fools. Productivity in Australia is a joke. If you asked these fools how many now have pink batts, new flat screen TV’s, digital radio’s, solar panels etc. etc. NONE are made in Australia. What hypocrites. The new work choices will kill business in Australia. teh car industry will be next and then agriculture because of the Greens.

    • James1 says:

      01:00pm | 01/11/10

      I hope the Australian car industry dies sooner rather than later.  The only thing it does is keep car prices higher than they need to be.  Nearly everyone would benefit from a free market in automobiles, and those that lose jobs would find others soon enough.

    • Fiddy cent (an hour) says:

      01:05pm | 01/11/10

      I simply don’t get how people on both sides of this debate slag each other off as responsible for the demise of the manufacturing sector in Australia.  So let me have a crack at it…..

      Australia = $18- $30+ per hour. 
      3rd world = $0.50c - $2 per hour.

      No policy decisions will change that.  Just look at the way the US is crumbling right before our eyes.  The only real first world economies that still maintain a postion as nex exporters or manufactured goods are Germany and Japan, both famous for the outstanding quality of their design and build quality, and even they are struggling to compete.

      TrueOz, I won’t take the high ground about exporting jobs offshore.  You gotta do, what you gotta do because we simply can’t compete…. but i don’t think any policy maker can take the bullet for it.

      Let’s face it.  We are a country that digs holes to feed itself (quite well). Now, stop slagging each other off, and get back to your shovels.

    • TrueOz says:

      01:11pm | 01/11/10

      @newnewshound

      No fast bucks mate - just a businessman trying to make an honest buck without the barriers previously placed in my way by the incompetent fools calling themselves government.

      @James1

      The people who need to consider their commitment to this country are the union officials, politicians and bureaucrats that have gone to so much effort to ensure that employers go to another jurisdiction to find workers.

    • Markus says:

      01:25pm | 01/11/10

      Enjoy it while you can TrueOz.
      If every business starts employing 3rd world labour as you did, cost of living will increase in that country resulting in a demand for higher wages, while back in the first world no one will have a job anymore so will no longer be able to pay the exhorbitant goods/services price markup that your entire livelihood depends on.

    • James1 says:

      01:41pm | 01/11/10

      That’s true, TrueOz, but they are not so different from yourself, in that they put their own income levels before their country.

    • Gregg says:

      03:49pm | 01/11/10

      @Markus,
      Re that third world cost of living, it’ll be well past our lifetime and that’ll be the WTO level playing field theory.
      When the cost of maufacture abroad plus shipping costs is more than what a country can do it for onshore, so there is motivation for local manufacture.
      Then we’ll have to see whether we want to be the developing nation or even can for population will also have an impact.

    • Christian Real says:

      04:01am | 02/11/10

      TrueOz,
      You say you no longer think of Australia as home,well you are free to leave,we don’t need people of your calibre living here and getting cheap labour from overseas countries, didn’t Slave labour cease ages ago?

    • Three Score and Ten says:

      10:20am | 02/11/10

      Totaly agree with u True Oz.. Watched with interest the fiasco of the union encounter with the Hobbit in NZ, still laughing.

    • acotrel says:

      06:38am | 05/11/10

      Fiddy, Henry Ford paid his workers 5 times the going rate.  They could then afford to buy his products!

    • ann m says:

      05:54am | 01/11/10

      You’re a dangerous person to the Australian way of life, you want to send us down the European road of political correctness and open borders that has now come back to haunt them. And guess who gets hurt the worst, yes the worker who can least afford your left wing views. But you believe in pain for your socialist/communist gain.

    • Reg says:

      07:27am | 01/11/10

      Yes you and TrueOz should take your skanky arses off and work on the other side in the third world and see how you survive on the pittance you pay. Just don’t forget to boil your water and live on rice cakes.

    • TrueOz says:

      10:21am | 01/11/10

      @Reg

      You have no idea what I pay or how my workers live. It seems that perhaps I’m the one who has seen the other side in the third world and am actively doing something to provide much needed employment for decent people who actually respect what I do for them. I like boiled water and rice cakes too. You rant like a narrow minded and ill-informed imbecile, so I’m going to draw a long bow here and assume that’s what you are. You are therefore forgiven for your otherwise unforgivable stupidity and rudeness.

    • ann m says:

      12:48pm | 01/11/10

      Reg dont be nasty, i’m not knocking unions as such just the left wing looney at the helm who still beleive Lennin and Stalin were nice people and look how working familiys fared under their rule!!

    • Reg says:

      04:13pm | 01/11/10

      TrueOz I assume you’re not a dill nor have you moved your business for the good of your SEA employees and certainly not for a mere pittance. If the improvement in your income had not been considerable, the move would not have been worth the effort. So don’t squeal that your motives have been for the good of the region. They have been for your own good and at the expense of Australia in general.

      Yes it is not all bad, it is part of the cost we pay for supporting our South East Asian neighbours, but don’t come here and plead that you regret the opportunity to improve your income. By the time you pay the going rate there with a little on top for encouragement, being magnanimous, you’ll be paying considerably less than 50% of the rate in Australia.

      Now instead of expecting everyone to swallow your right-wing bullshit, front-up and recognise that your move is part of the low pressure political thrust that incorporates Australia into the South East Asian fold.  Not that you’d be smart enough to notice.


      @Ann no thinking person believes Lennin or Stalin were nice people. We understood that way back during WWII. If you need this to support you case then I’m buggered if I can understand what you think of as left-wing. You need to take what all the right-wingers here keep regurgitating and lay it to rest with that other vile product of the ultra-right, Workchoices.

    • TrueOz says:

      07:58pm | 01/11/10

      @Reg

      I was going to refrain from being rude, but you’re set yourself up as fair game now. Never have I even suggested that my motives were altruistic. My motives were driven by a desire to assume less risk in the process of doing business and make a larger profit from my investment. The fact that I have managed to provide employment for those who need it is incidental to the process - as it once was for me in Australia.

      It is because of narrow minded, rearward looking, mental midgets of your ilk that I decided to employ abroad on an exclusive basis. Far from being “not smart enough to notice” the integration of Australia into South East Asia, I actively support such a thrust and do all that I can to endorse it wholeheartedly. Unlike you Reg, I have nothing to fear from more capable competitors.

      If there is anyone “not smart enough to notice” what’s happening in the real world it’s you, Reg. Australia is already all but dependent upon the purchasing power of China for its economic wellbeing. Like it or not, the Chinese and the other people of Asia are demanding an equal place at the table of opportunity and prosperity - something you clearly seek to deny to them.

      You’re gutless Reg. You fear the more capable competitor. You fear the man who can do your job better than you can, at a fraction of the cost you now feel entitled to be paid for it. What a pussy!

    • Reg says:

      08:38am | 02/11/10

      (Next day) Most gratifying to see you’ve given up on the weasel words and put your true thoughts on paper TrueQz.  They paint a completely different picture now. All you had to do was say the ratios of working in the different countries was somewhere between 36 to one and 15 to one, before freight.. We’d have understood that it was not any government policy you were complaining about, merely that your felt it necessary to take refuge behind a questionable non-de-plume and attempt to justify your actions by were using your greed as a political cudgel.

      By the way at age 73+ and with heart-failure, I hope soon to be in a position to lighten your tax burden, while feeling no need to apologize to people who come here misrepresenting their reasons for taking their business off-shore, for this is exactly the thread of the discussion.

      Nor should you condemn fools, they are only doing their inadequate best by your standards.

      Australia = $18- $30+ per hour.
      3rd world = $0.50c - $2 per hour

    • Tom Daly says:

      06:14am | 01/11/10

      The “Weasel” words or phrases are everywhere. Away from the subject a
      bit .I am always amused(perversely), at the end of the City to Surf , when the runners stagger across the finishing line in all stages of distress ,clicking their wristwatches. “You Beauty , faster than last time” ! as they are attended by paramedics, rehydrating them and struggling for breath. The weasel word in this is FUN , as in FUN Run… Not a “Norms” idea of fun.

    • Anthony Marshall says:

      06:28am | 01/11/10

      All very laudable sentiment and if the unions were fair dinkum about it, the vast majority of employers would be as well. After all, happy workers are productive are they not? Productive works make the business profitable all things being equal. Utopia here we come! Oops, fly in the ointment! When you have laws like the NSW laws that make employers automatically guilty for a work place accident if they can’t prove their innocence. And the union can instigate the action and keep half of the fine? Not really a two way street is it. Or forcing businesses that will not play ball with the unions out of business? Until the unions go back to their roots and start looking after workers rather than feathering their own nest, your idea of Utopia will be just that.

    • Reg says:

      07:54am | 01/11/10

      How frequently that little set of weasle words arise. “If the unions were fair dinkum about it.” A sentence pre-loaded with the assumption that someone is “out to get you.” Paranoia at the helm of every small business and aimed at unions, when the real ones who are out to get you are your competition. The same type of ugly bastards as you, intent on kicking someone in the guts in order to maximize their market share.

      It’s a balance made the more difficult by the fact that we live in South East Asia. If you want to take advantage of the Australian market place, “TrueOz” then pay a tariff on the goods you bring in from third world countries or pay the third world staff the tariff you’d have to pay to bring the goods to this market, then bring them in free.  It’s the international living standard threshold and the same one that ugly management want to take advantage of -and- since they wish to attack our living standards in this way -and- because attack is the best for of defense, let’s attack these hungry bastards. How’s that TrueOz? Are you happy with the competition barriers you’ve set up between Union and Management by playing the third world card.?

      Best change your name I think.

    • marley says:

      09:43am | 01/11/10

      @Reg - what makes you think that Australian workers have a god-given right to employment? If Indian workers can do the same job at a competitive price, why shouldn’t they enjoy the benefits of that work?  The Indian middle class is growing fast - just take a look at places like Bangalore - and it’s growing because its citizenry are getting real, meaningful jobs. Of course their wages are lower, but they’re fair in relation to wages in general there, and rising.  And their living standard is rising with it.

      I’d be appalled if we decided to cripple the developing world’s economic progress by slapping tariffs on their burgeoning industries.  What, to protect the western worker, we condemn the third world to an endless cycle of poverty?  One of the biggest problems in Africa is the tariffs imposed by the first world on their agricultural products.  It might protect French and American farmers, but it destroys their Ethiopian and Kenyan counterparts.  What you’re suggesting is analogous.

    • Anthony Marshall says:

      09:55am | 01/11/10

      Reg, you Dill,

      Try replying to the comment in question. I did not mention SE Asia, nor am I “TrueOz”. However, I stand by my fair dinkum comments. I have had to deal with unions and union inspired laws as a manager for small and corporate businesses, so I do know what I am talking about. Yes, there are bastard bosses out there, but the vast majority just want to run their businesses, look after their people (happy workers = good worksers) and just get on with it.

    • TrueOz says:

      10:33am | 01/11/10

      @marley

      Well said marley. Reg just likes to pretend that he is concerned for the welfare of workers in the third world. What Reg is actually concerned for is his own welfare - and he should be concerned. What Reg needs to start fearing is something he is unaccustomed to in Australia - the more capable, lower cost worker. Bunker up Reg. There’s nowhere to run, nowhere to hide. You’re already toast!

    • Gregg says:

      10:58am | 01/11/10

      Reg is just out practising his next March it would seem Anthony, banner held high with something like Hang ‘em high!

    • Ryan says:

      07:11am | 01/11/10

      “Weasel words”, you mean like “moving forward”, “we won’t be delivering on our pre-election promises” and the pearler of “we won’t be introducing a carbon tax”. Weasel words indeed.
      As for us battlers, I wish I was rich enough to afford this Labor government, and the effect they are having on utilities, taxes, food, banking, insurances and pretty much everything else. I wish I was a rich politician that could afford to live in this delusional world of yours.

    • Angry God says:

      07:17am | 01/11/10

      This article certainly deserves derision as it is a fantasy of public servants that they actually produce anything. How do you equate the lift in productivity when there are 100000 more people out of work than when the previous government left office.  Do we need to fire more people to obtain short term gains in productivity, do we look at the illusion of statistics or look at the body as a whole and note that even though some productivity gains occurred, most of these were due to companies downsizing, reducing maintenance activities and watching their bottom line more than they had to during the boom times. The reduced maintenance is now having signifacnt cost impacts on a few of the mine sites that I am familiar with and the losses are now exceeding the costs of maintenance.

      As a person that prefers to plan better, I hate the false cost achievements made by the reduction of actions that history has shown to be beneficial. The savings that you intimate to have occurred by better productivity have a cost that you are pointedly ignoring by only looking at productivity (short term) over business production on the longer term.

    • Jim says:

      09:01am | 01/11/10

      More than a few mine sites Angry! The non-union sites tend to have large, full-time maintenance departments that get in a fix things when they break. Union sites have all downsized their maintenance staff and turned to contractors. If the ACTU or the CFMEU (can’t friggin make em useful) really had the ‘workers’ best interests at heart they’d do some soul-searching and figure out why this is happening.

    • Reg says:

      09:16am | 01/11/10

      Angry God, it’s a total social machine. Productivity in other spheres are as essential as in yours, even if you ARE too close to your task to appreciate that of others.  Savings in maintenance can take two forms in my experience, no-one to do the work, or lack of spares and increased down time. Such bumps in productivity are management decisions that cannot be allowed in things like social services. You can imagine the impact if someone decided not to pay pensions this fortnight because there was no-one available to do the job.

      I’ve worked in a situation with no spares and no support information and that’s the time I feel I have risen to my greatest heights. Flying blind and succeeding.  Management accepts the risk of success or even greater disaster.

    • David66 says:

      09:49am | 01/11/10

      Jim, I digress from your argument that non-union sites have full-time maintenance crews and union sites use contractors. I currently work in the mining industry and it is the opposite of what you say. The non-unionised sites tend to have the most abysmal maintenance standards and the attitude of “So it doesn’t work properly, just tape it up she’ll be right”. The unionised sites stop and fix things, or at least have a monthly shutdown where actual production stops for 24-48 hours so essential maintenance can be done. Also some of what the bean counters would call non-essential. Funny how you never see these bean counters when the equipment breaks down and the site ceases to produce for a week while repairs are made on equipment that had been deemed non-essential in the maintenance stakes. “Hey look at the money I saved by not doing maintenance” gets a pat on the back, while a weeks lost production costs 20 times that amount and everyone worries what will break next, and who will cop a flogging for it. Its never Mr Bean counter.

    • Jim says:

      10:13am | 01/11/10

      Not sure what mine sites you’ve been on David66. Major planned shuts are usually based around a critical bit of gear, such as a grinding mill or crushing circuit. that forms your critical path and all other jobs are worked around that. So they may be monthly, bi-monthly, quarterly - depends on the site and the equipment. The big shuts are where you need a small army of contractors…but the upshuts in between is where you need your full-time maintenance guys. They’re on site already and can dive into the work and get the place up and running again.
      In the non-union sites, as I said, there is usually a large maintenance department that do the PM work, plus breakdowns. They are all multi-skilled and valued employees.
      In union sites there is always a risk that if a boilermaker picks up a spanner then the work will stop. And heaven forbid a sparky should pick up a shovel to help out! It’s much safer for a company to go down the path of relying on contractors for all maintenance then…which puts you at the mercy of availability of said contractors for even minor work.
      20 years in mining and it’s a scenario painted time and time again.

    • TrueOz says:

      10:42am | 01/11/10

      @Reg

      Good to see you’ve been keeping on top of all those discredited economists - you know - Marx, Keynes - the sort of economists that advocate having workers dig holes and fill them in again because “...it’s a total social machine. Productivity in other spheres are as essential as in yours…” Keep it up you comic genius - you’re makin’ me laugh!

    • Steve Putnam says:

      03:54pm | 01/11/10

      @TrueOz (below) Could you explain why you think Keynes is a ‘discredited economist’? The stimulus packages that every developed economy has undertaken in response to the GFC is pure Keynsian pump priming on a scale never seen before; no economist has ever been more in vogue!
      Witness the spectacle of the bosses of Ford, GM and Chrysler jumping in their lear jets and flying down to Washington to plead for taxpayer dollars to bail them out.
      The only instance I can recall of workers being asked to dig holes and then fill them in was under the previous (Howard) government. I think they called it ‘work for the dole’.
      Presumably you follow the monetarist school of economics—-Friedman and his ilk. If that’s the case maybe you could give me the name of a single monetarist who predicted the oncoming disaster of the GFC?

    • Reg says:

      04:31pm | 01/11/10

      Faux TrueOz, since you’re into exporting as well, perhaps you have some advice for those other hole diggers who also dig them and thumb their noses at the Aussie tax-payer. It seems to me that you don’t put any value on Australia unless it can turn you a profit.  The same as your attitude to SEA.

    • Richard says:

      07:24pm | 01/11/10

      @ Steve Putnam: Keynes has been totally discredited- look at Europe, austerity is all the rage there now, as it will be in America soon thanks to the tea party. And if you are looking for a staunch anti-Keynesian who was able to predict the GFC in advance, please look up ‘Peter Schiff was right’ on youtube. Schiff is from the Austrian school of economics, and is rapidly becoming one of the leading financial authorities in America.

    • TrueOz says:

      08:02pm | 01/11/10

      @Steve Putnam

      The name you’d be looking for is Australian economist Steve Keen. Google him and learn.

    • TrueOz says:

      08:04pm | 01/11/10

      @Reg

      Sorry mate - I sometimes forget what noble and unselfish company I am in when posting on the same forum as you. I’m barely worthy!

    • Steve Putnam says:

      10:03am | 02/11/10

      Richard, Peter Schiff correctly predicted the sub -prime mortgage crisis, but his forays outside the US have been way off the mark. Throughout 2008 his brokerage firm Euro Pacific Capital argued that the $US would weaken substantially and that foreign stocks would greatly out-perform American ones. The opposite happened leaving his clients millions of dollars out of pocket. The Wall St Journal remarked that Schiff ‘made mincemeat of investors who took his advice’.
      His advocacy of further deregulation for the financial sector, when it is obvious that the un-checked and cavalier behaviour of banks and lending institutions created the mess in the first place, is baffling to say the least. Moreover it is the complete opposite to what Hockey is advocating in his nine point plan.
      The dangers in stimulus spending are when debt is a significant percentage of GDP such as is the case with Europe, the US, and Japan. In Australia, the budget papers show that for fin year ending June 2009, the stimulus package in the form of public and consumer, spending grew GDP by 3.1% (to put this figure into context, the comparable figure for mining was 0.2%). This is pure Keynesian theory and it worked like a charm. We have the lowest rate of debt, the highest rate of growth, and most importantly the lowest rate of unemployment in the developed world.
      The economists of the ‘Austrian School’ (to use Ian Parker’s memorable phrase) ’ have coronaries at the mere sight of “x’s and y’s"on a blackboard’ and make their predictions on the basis of ...well what? Inform us Richard.
      TrueOz Keen calls himself a post-Keynesian not an anti-Keynesian.
      What we have witnessed during the GFC is the spectacle of business after having taken big losses, running cap in hand to taxpayers to bail them out. Surely a case of don’t do as I do, do as I say.We’ll keep the profits, but in the interests of the country we’ll socialise the losses.

    • Richard says:

      11:34am | 02/11/10

      Steve Putnam, I think you’re the one whose way off base about Peter Schiff. So your main accusation is that some of his clients lost money in 2008. Well, who didn’t lose money in 2008? It has been shown that Warren Buffet’s investors lost more money than Peter Schiff’s in 2008.

      And why did they lose money in 2008? Because Peter Schiff advised them that eventually the US dollar was going to lose value and that gold and emerging markets would outperform. Umm hello? What has been happening ever since 2008? The US dollar is at all time lows, gold is at all time highs, and emerging markets have easily outperformed traditional ones.

      Anyone who rode out the 2008 lows are now so far ahead if they followed Schiff’s advice that any criticism of him just ends up looking like sour grapes.

    • Jim says:

      07:25am | 01/11/10

      “It has now been proven that fragmenting and isolating individual workers and cutting them off from unions does not lift productivity.” - interesting. Who proved that and in what industry? Was the study done objectively? Was it undertaken after a unionised site was put on an EBA? Or was it a site that had never been unionised?
      Before Weasel jumps in with a “Jim hates unions” rant - I’m all for a better deal for our nurses (as the author is). They are overworked, underpaid, and very much undervalued. If that requires union intervention then so be it.
      But I’ve worked in mining for many years and had exposure to all facets of IR specific to that industry…I can assure you that collective agreements and heavy union influences in mining has a largely negative impact on productivity. There are no incentives whatsoever for productivity. The only means by which they can earn a bit more is to rort the overtime systems - run a secret sickie/overtime coverage roster…not many businesses can carry that for too long. Cutting the abuse of overtime in my particular place of work reduced costs by over $2M a month. Each of the guys here knows full well that under an individual contract, the better workers would be on a much better wicket and they wouldn’t have to carry the dead wood…but the union mentality is so ingrained their hands are tied.

    • The Badger says:

      08:53am | 01/11/10

      Jim hates unions. just not all unions. mostly the unions associated with the mining industry. Mostly because people in mining make obscene amounts of money and don’t even need to rort the system. They just have to put up with flies crawling all over their faces.
      How much wood could a woodchuck chuck if a woodchuck could chuck wood?

    • MarK says:

      09:54am | 01/11/10

      “How much wood could a woodchuck chuck if a woodchuck could chuck wood? “

      Approximately 3.9675 pounds every 5.6843 seconds

    • Jim says:

      10:21am | 01/11/10

      “How much wood could a woodchuck chuck if a woodchuck could chuck wood?”

      Dunno Weasel…is it the same amount of wood that you buff each day?

    • acotrel says:

      06:52am | 05/11/10

      If the mining workers had a piece of the action, their own share price was at risk, would that make a difference? We never hear about ESOP these days?

    • Aitch B says:

      07:30am | 01/11/10

      All very nice….. yes, by all means protect the workers’ rights, keep their income commensurate (at least) with the cost of living and make the work place ‘family friendly’.

      How about YOU cracking down on work place safety abuse where a union can completely shut down a construction site for a day because a 2” hole in a concrete floor wasn’t covered up…. when it was a bloody worker’s job to cover the flaming thing!!

      Rorting and extortion is NOT dead in the union movement and until union management and the ACTU executive admit it and do something about it I have no time for your bleating about ‘productivity’ and ‘flexibility’ and pointing your finger at employers and past governments without looking inside.

    • RJB says:

      07:43am | 01/11/10

      Speaking of weasel words, now that we have someone new at the helm, could you make sure they don’t give the megaphone in street marchers to any dope that doesn’t know what’s going on! I’m tired of him asking “what do we want and when do we want it”.

    • Reg says:

      08:04am | 01/11/10

      Yes I know your type of management RJB, always with the question but never with the answers. For that you depend on your staff. Perhaps you needed to watch the programme on how Google manages its day. I think it was 20%...yes 20% of their day management insists staff devote to their own pet projects.  and the white-board oh yes the white-boards in every corridor.

    • Eric says:

      08:43am | 01/11/10

      @ RJB good one.  Clever and amusing!

    • Eric says:

      08:47am | 01/11/10

      Hi Reg, I work mostly in the mining and construction industries.  Love to see those work sites enshrined with white boards.  Get real mate.  To Ged Kearney - spend a couple of days on some work sites (esp construction) and watch the behaviour of some of your delegates.  Might be enlightening for you - as opposed to the nursing world from whence you came.

    • Reg says:

      09:25am | 01/11/10

      Yes Eric I recognise the type. Another so close to his work face that he thinks it’s the only one that matters. Now here’s to you with the most earnest intentions, ... get real, there’s another side of life that does not involve pushing heaps of dirt around.

    • Gregg says:

      11:09am | 01/11/10

      I think it was more of a statement Reg, for you not to be given the megaphone or at least take the batteries out so you could call up a megaphone mechanic, an electrician, a gopher and a storeman to get some put in.

    • Charles says:

      08:05am | 01/11/10

      The author of this article is either completely disconnected from reality, or is so overwhelmed by ideology she does not which way is up.  Taking the teacher unions as a classic example; the good teachers are paid exactly the same as the poor teachers, non-one can get ahead via reward for merit, and the education and management of our schools is now at such appallingly low levels that teachers a century ago would have been embarrassed to own.  This is what unions are responsible for.

      The author needs to go and have a look at the damage which has been wrought on the workers and businesses of Australia, and can give themselves no plaudits for the harm they have done.

    • Pete of CC says:

      08:20am | 01/11/10

      Productivity….hmmmm… next year in the disability services ,we are getting a new Federal award, called the “Modern Award”.  This new modern award (?!) has hourly rates at least $3.00 an hour LESS than what workders in the industry are being paid now.  The disability industry is already struggling to recruit and retain staff - now the Government wants to reduce the hourly rate.  How is that going to attract staff?  How is that going to improve productivity and permit flexibility when no-one wants to work in disability?  And sice most of the funding comes from ADHC, they can say we will pay you only what we have to under the Modern award,any above award payments will have to come out of the NGO’s pocket.  Charming government we have here, still paying those who work in people care (health, nursing, aged care, disability care) and emergency services(firemen, Ambo’s and police) a pittance for their efforts!  A cheapskate government is what they are!

    • AdamC says:

      08:36am | 01/11/10

      ‘Modern’ award = contradiction in terms!

    • Macca says:

      08:21am | 01/11/10

      What a load of tripe.

      The ACTU called for Casual Workers who have worked for an employer for more than 12 months to be guaranteed a permanent position. Ridiculous. The impacts on the labour market would be horrendous. Such a move would only push up Unemployment. The Union movement understands conditions. It does not understand jobs or how to run a business.

      As for Bargaining more often, since FWA came along, Industrial Action has increased by over 60%. Industrial Action is only legal during a Bargaining period. How is any of that good for productivity!?

    • ABC says:

      08:30am | 01/11/10

      Okay Ged,  I would have expected slightly more of the head of the ACTU (but on second thought’s no, you have just reinforced my view)

      In terms of the economy (you know, in a macro-economic sense, or is that something you need to look up), the words productivity and flexibility mean vastly different things than they do in a micro-economic sense (you know, from an individual and business level sense).

      The fact that as the head of the ACTU you either do not know the distinction between macro and microeconomics, or are deliberately and wilfully misinterpreting them to suit your own ends is a further indictment that the unions are nothing but self serving, self aggradizing group who have little to no relevance.  In fact on last reporting only 15% of Australian workers were union members.  It’s hardly suprising with the head union honcho doesn’t even seem to comprehend the most basic of economic principles.

    • Bobster says:

      09:56am | 01/11/10

      Or, alternatively, as the head of the ACTU maybe he was talking about microeconomics because that’s what actually affects his members (that measily 15 per cent - otherwise known as 3.15 million workers).

      You know, the people who actually feel the effects of this wonderful economy we have at the moment?

      Fact is Australia is more productive than ever before but the profits are going into the pockets of a select few who feel they are well within their rights to threaten their workers with destitution should they have the temerity to ask for a pay rise in line with CPI.

    • MarK says:

      11:14am | 01/11/10

      “Fact is Australia is more productive than ever before”

      Ged just said we weren’t. Then we were. Then we are not. Now you sya we are.

      What is it?

      Gosh will you guys get the story straight. So confusing.

    • Macca says:

      11:22am | 01/11/10

      @Bobster, “Fact is Australia is more productive than ever before but the profits are going into the pockets of a select few who feel they are well within their rights to threaten their workers with destitution should they have the temerity to ask for a pay rise in line with CPI.”

      Actually, CPI is currently around 2 - 2.5%, most wage rises for the past 4 quarters (thats a year…) have been between 3.5 and 4%, although significantly higher in many regional mining areas

    • Gregg says:

      11:24am | 01/11/10

      @ ABC and Bobster,
      Lets cut Ged some slack for with a nursing background she still probably has a lot she can learn and yes Bobster, Ged is of the damsel gender and if she wasn’t in distress looking after nurses, she sure might getting her head around industry and where Australia is headed, our own version of an Asian typhoon to batter us all around the head down under.
      I think the figure may be 25% and two million btw guys.
      And Bobster, it does come down to how productivity is measured as to how productive we may be.
      For instance, if the same number of employees are digging the same number of holes in the ground or perhaps with new resource projects, bigger holes can be dug with less people and bigger machines and demand has pushed global prices up that may show as a whole the national GDP has risen but it matters for nought as to productivity for most.

    • Bobster says:

      12:17pm | 01/11/10

      Perhaps we have different measures of productivity. I’ll ammend, we’re making more money than ever before but only a handful are seeing it.

      P.S, Hi MarK, this is one of those “forming your own opinions” things again. Haven’t been in touch with the Communist Takeover HQ today so maybe I’m a bit off message again.

      In the mean time, here’s another simplified version of my view (for your easy digestion): Australian profits good now. Australian wages not so good. Cost of living bad. Twiggy Forrest sack everyone if taxes or wages increase. Bobster disapprove of unscrupulous big business. Think fair day’s pay should be based on profit rather than strength of individual or union in question. Profit growth out of step with wage growth. Make Bobster sad.

    • Jim says:

      12:38pm | 01/11/10

      “...should they have the temerity to ask for a pay rise in line with CPI”

      CPI based pay rises are only for those on minimum wages. If someone is getting above minimum wages there is no obligation to increase pay. Of course, if the employee is worth it he/she will get a rise each year. Those that don’t should look at themselves.

    • MarK says:

      12:52pm | 01/11/10

      “Ged just said we weren’t. Then we were. Then we are not. Now you sya we are.

      What is it?”

      Answer the question.

      Oh and

      “Think fair day’s pay should be based on profit rather than strength of individual or union in question.”

      is a novel suggestion. I am sure people will be rushing out the door to risk their capital knowing if they do well they give it all away to the workers under Bobsters workplace reforms.

      Awesome.

      Thankfully all those businesses that don’t do so well through bad management or bad luck will have free staff or staff kicking some cash in to defray the loss. It works both ways right? You know the workers have to subsidise of things go wrong?

      Awesome plan. Way to organise your workforce.

      Keep it up son. You will have this place fixed in no time.

    • ABC says:

      01:04pm | 01/11/10

      Gregg,

      No I am not going to cut Ged any slack.  She is the head of the ACTU, an organisation which has the capacity to impact on the role that the labour market has on the workings of the economy.  If the leader of the Trade Union movement in this country does not have a fundamental grasp of economics to know that in terms of both macro and mirco economics the terms “productivity and flexibility” have defined and recognised meanings, and are not just weasel words, then quite clearly, irrespective of her background, she should not be in the role.

      If the leader of the union movement in Australia is going to make pronouncements she should be suitably au fait with the facts.  She should damn well know what she is on about.  If even in a simple blog post she cannot get the facts right then that is an indictment. She’s presumably had ample time to prepare this erroneous little treatise.  How about a bit of research.  Even if she has no idea about economics, what are all the union flunkey’s at the ACTU head office doing?  If they do not have the wherewithal to Google the economic definitions of productivity and flexibility then that is further fuel to the fire of union uselessness.

    • Bobster says:

      01:37pm | 01/11/10

      Ah yes, the union’s are bad therefore anything anyone from a union says must be bad theory. I’ve always liked that one. They’re probably communist as well - git ‘em.

      Here’s my final thought for the day, think yourself lucky we had a trade union movement when we needed one. Right now, it’s probably not as vital as it was at the turn of last century.

      Luckily of course, trade unionism is the sort of beast that will continually rise from the ashes. Unfortunately, we’re all going to get shafted pretty violently in between then and now. I think that’s started.

      When it happens, we know who to blame - they’ll be the one’s complaining that “SCAB” was keyed into the doors of their once mighty, now rusty, BMWs. The same one’s who feel sorry for the billionairres who are always about to be crippled by a half a per cent rise in the minumum wage.

    • Gregg says:

      03:59pm | 01/11/10

      @ABC,
      Not even too many of our parliamentary leaders are great economists nor probably would lay claim to being so and I doubt that anyone person can totally grasp either and just what interaction there may be between micro and macro economics, the drivers and ebvironment so varied for both.
      So all I am saying is that for an ACTU President, a new one at that and more a figure head person than anything, your expectations on economics are a tad or more high.

    • AdamC says:

      08:34am | 01/11/10

      Sheesh, there isn’t much new or original here, is there? Actually, lots of weasel words and fallacies.

      For example, “We could start by recasting collective bargaining as a friend to productivity, instead of an enemy.” Did anyone ever ‘cast’ collective bargaining as an enemy of productivity? No, of course they didn’t. But, some people (like me) think there should be the option of individual contracts (AWAs) as well. It is not a question of whether collective bargaining is bad for productivity, but whether enforced collective bargaining (and prescriptive awards) are.

      And I am one of those apparently delusional people who think flexibility and productivity are self-evident ‘goods’. Unfortunatly, Ged, we cannot simply write higher living standards into awards or IR legislation. We actually have to create more by improving productivity and growing the capital stock.

      Australian unions seem stuck in the seventies. It’s time to move on.

    • TownsvilleTom says:

      08:47am | 01/11/10

      I well remember the Hawke-Keating years and the “Accord”.  This was a deal formulated by unions and larger employers, where, in the name of productivity they sacked 10% of the workers and gave a 10% rise to those remaining.  This resuted in an increase in unemployment and a lift in profits to the employers (less infrastructure, less leave and compo, smaller fleets and buildings etc.)
      But - same output!  Productivity means an increase in output for the same worker input. This will never exist when an ALP government is in power.

    • Gregg says:

      01:07pm | 01/11/10

      But Tom, same output with the 10% deadwood gone and so same done with less bodies and you have a productivity rise.
      Perhaps that is what Julia aspires to more of.

      And she knows what she is on about and is going to raise the treasurey productivity by raising resources taxes.
      Only trouble is when product demand for those actually doing something goes down, so will prices and if there’s a better taxation/bottom line result elsewhere, guess where the goose that is laying golden eggs will head!
      Elsewhere and there goes the government revenue productivity increase.

    • TownsvilleTom says:

      02:14pm | 01/11/10

      Gregg - you’ve conveniently forgotten that the “deadwood” dramatically increase the unemployment levels and the taxpayer (instead of the employer) foots the bill.  Productivity rise?  Rubbish!

    • The Badger says:

      08:58am | 01/11/10

      We don’t need unions anymore. What we need is a “fair and balanced” approach that allows the big end of town money making machines behind the conservative party to exploit workers in order to squeeze every last drop of “productivity” out of their miserable lives.

      The important thing here is return on investment to the shareholders and bonus time for the executives.
      Workers should just shut up and be grateful they have a job

    • MarK says:

      09:50am | 01/11/10

      “We don’t need unions anymore.”

      Given the decline in membership your not Robinson Crusoe.

      “Doh” Homer Simpson

    • Zeta says:

      09:02am | 01/11/10

      The problem with the arguement in favour of collective bargaining is the assumption that all workers are homogenous. It works great in theory on a factory line but is not the reality for many Australian employees. I’m not anti-Unionism, in fact I think it’s vital for protecting ‘capital W’ workers whose low skill levels render them easily replaceable by market forces - they need collective bargaining, because if they’re not smart enough to get themselves a better job, they’re certainly not smart enough to negotiate a fair wage.

      But every year there are less and less of those jobs, more and more highly skilled workers, and more union operatives struggling for relevance in a shifting market place.

      Even in the traditional professions where Union membership is highest there is less relevancy. Why would a highly skilled electrician want to collectively bargain with an organisation like Telstra if their skills are so sought after they could negotiate on their own and earn more?

      To increase productivity and flexibility there needs to be one rule for unskilled labour and one rule for highly skilled workers. Enforce collective bargaining regime on the later - but let the former negotiate on their own if they want to.

      I always thought that Workchoices would have worked if only AWAs had have been restricted to those workers earning $100,000 pa or more, with voluntary AWAs for those earning less. It would have had the stated aim of giving more options to the growing mining industry, let highly skilled workers pick the terms of their employment, and avoided the political shit fight with the Unions.

    • Richard says:

      09:34am | 01/11/10

      Such an incisive comment Zeta, and the fact is that the Unions in Australia will continue to lose clout and relevance until they take some initiative and set up some branches in Vietnam, Indonesia and the Philippines (my VIP list that I think is set to emulate the BRIC economies).

    • Jotun says:

      09:04am | 01/11/10

      I laughed when she said productivity has languished during Howard’s years, then in the next paragraph, went on to mention how productivity has sped up ahead of wage growth.

      Accidental contradiction much? Or unionised furphy being spouted upon the Punch’s readers?

    • MarK says:

      09:45am | 01/11/10

      I actually wrote a piece and deleted it on this very topic. I actually got bored pointing out the contradictions in these sentences all one after the pther.

      “At the moment that is just not happening. We have seen productivity rise faster than wages, resulting in real unit labour costs hitting an all-time low of more than 17 per cent below what they were during the mid-1980s.

      It is no coincidence that productivity growth has been sluggish during a period of strong downward pressure on wages and unfair IR laws.

      So, how do we get Australia back up to those productivity peaks of the 1990s?”

      I mean really. It makes no sense.

      The only real theme is -shock gasp hooror - she wants collective bargaining not individual bargaining.

      In other words a union hack wants unions to have more power in the workplace.

      So what?

      Hope she gets the secretary to proof it next time so she doesn’t look silly as you correctly pointed out. Seems like the AGW argument re rain. It either causes more or less depending on when you are arguing that those “rare” occurrences of droughts and floods in Australia happen.

      Productivity here is treated the same by the author even as she howls at the moon for people to treat it nicely.

      What a joke.

    • BillfromBendigo says:

      09:30am | 01/11/10

      Here’s the bargain.  I want this done and I’m prepared to may this much.  Any profit I make is my business and if you want a share of it, stump up your hard earned and buy into my business.  If you get crook I’ll pay you for a few days as part of my goodwill so I think its fair that every now and again you spend an extra five or ten minutes to finish a job after knock-off time.  Hell, I’ll even pay you for not turning up at all for 4 weeks.  If you disrupt MY business I’ll sack you.  If you steal from me I’ll sack you and report you to the cops.  If you are unreliable I’ll sack you.  If you’re no good at the job I’ll sack you.  If you become a parent, I’ll congratulate you but make your own family arrangements in your own time and at your own expense.  If your kids have a runny nose and have to stay home from school, refer to previous item.  I expect my instructions to be followed since I’m paying you to work.  If you think the work is beneath you, fine, I’ll employ someone else who will appreciate the opportunity.  This is a give and take relationship.  I give you money and take your labour in return.  That’s all I will take from you.  I won’t take abuse, lies, deceit or demands.  Simple arrangement really.  Take it or leave it.  Oh and by the way, I want to be your boss, not your friend.  OK, Good.

    • Ben C says:

      01:18pm | 01/11/10

      My union says that:
      - I should be paid the same as everyone working the same job, even if they are better skilled/more experienced/whatever.
      - I must be paid overtime for every extra minute that I work.
      - You must adhere to the three strikes policy for any indiscretion.
      - If I’m sacked for what you deem to be incompetence, I will take you to court for unfair dismissal - you didn’t train me enough to be good at my job.
      - You must allow me to care for my family during working hours.
      - I will go on strike if you do not meet my demands - even if it disrupts your business.
      - I will report you to my union if I think your instructions are the tiniest bit unfair - you can deal with them.
      - I should not agree to this arrangement if it isn’t a collective agreement.
      - As my boss, you are always the enemy.

      OK, some of the above are a bit extreme, but unions have bred a sense of entitlement within society. This breeds laziness, which in turn affect productivity - do what we have to, no more, no less - we’re guaranteed to get so much, they can’t sack us for not doing more. This then causes disillusionment within the ranks that are putting in the hard yards, but getting paid the same as the dead wood. This disillusionment causes productivity to decrease, which means the business will be spending more for the same level of production, leading to either an increase in prices or retrenchments - both of which the unions are against.

      If the unions genuinely cared about workers, they should be consulting with employers about how to make working conditions better, instead of criticising employers without offering any sort of solution. After all, isn’t that what unions are about - presenting ways to improve the conditions of workers?

    • BillfromBendigo says:

      01:38pm | 01/11/10

      Then I’m afraid I’ll have to counter sue on the basis that you did not fully disclose the items listed which would have materially affected my decision to hire your sorry arse.  By the way, you’d better explain to these other blokes why you are responsible for them losing their jobs.  Someone flick the lights out when they leave.  I’m off for a round of golf.  Toodlepip

      So much for unions.

    • St. Michael says:

      07:04pm | 01/11/10

      Well, BillfromBendigo, I’m sure the workers and the union will be very happy to see you in Federal Court, then.  Since you’re sacking someone because they belong to a union or because they are advocating for better pay and/or conditions, you fall afoul of section 365 of the Fair Work Act 2009, which also dishes out a $33,000 fine at most plus compensation to the workers for you doing that to them.

      Oh, and unlike most shifty employers, it doesn’t really help to just say that you sacked them because of “restructuring”.  The Act presumes the intent behind your decision to dismiss was because of their union membership or their agitation for better conditions, and it leaves you to prove otherwise.

      Enjoy the court.

    • BillfromBendigo says:

      06:24am | 02/11/10

      Ah yes, St. Michael, the patron saint of Marks and Spencers and Law enforcement if I’m not mistaken.

      Thing is you see, that I firmly uphold section 365 of Bill’s Law, that is, he who has the gold calls the tune 365 days of the year.  MY business, MY life, MY family, MY risk and MY choice.  I can choose to close a business at any time I choose for whatever reason I choose without interference or outside influence.  Pay entitlements, pack my tent and off to the golf club.  My game, My bat, My ball, MY team, MY players and MY cash.  See what you don’t understand, St. Michael is that there are still some of us out here who won’t be bullied by union heavies or their combined shonks.  Here’s another rib-tickler for you.  Success isn’t an accident!

    • mickey says:

      09:36am | 01/11/10

      It’s former Union loudmouth, now Senator, Doug Cameron in drag spouting the usual Union bulldust.

      No ticket…no work.. in a velvet glove.

    • Jim says:

      11:21am | 01/11/10

      The average union punter lives the soldarity dream, mickey. But they fail to notice that they are simply pawns to move around and stir up as they groom themselves for preselection into the ALP. Combet, Shorten, Conroy…all the same, though Combet’s a bigger and more dangerous grub than any of them.

    • Darryl Price says:

      09:42am | 01/11/10

      Yes look the most disagreeable aspect of this article is the complete misappropriation of the term “weasel words”. Productivity and flexibility on their own are NOT weasel words. When they are coupled with other words which suck the true meaning out of them, the offending word is the weasel word. As an example if we were to talk about “programmed flexibility” the qualification of flexibility with the word programmed takes away the intent of flexibility and imposes an expectation. Why not google “weasel words”, and while you are at it check “motherhood statements” as well.

    • Dash says:

      11:13am | 01/11/10

      “Productivity languished during the Howard years”??? Really? Any evidence to back this up or is it just a vibe? We are not clones, we are not created equal in terms of our skills, our education, our motivation or our willingness to work hard. Yet union stooges still push for a one size fits all approach to pay and conditions. Mostly to protect their own power base I might add. What a joke. Look at teacher’s slaries for example. Years of service determines what you get, not your ability, not your dedication, not the additional hours you put in after school’s finished. The teachers that work hard preparing lessons and stay back after work to help children that need it are paid the same as those that put little if any preparation time in and go straight to the pub at 3.15. That’s a joke and a classic example of how the unions have socialised the workplace. That’s what collective bargaining has achieved. Where’s the incentive for people to work harder, to educate themselves more, or to go the extra yard. I have nothing against protecting minimum rights and expect the law to do so, but I just don’t get the mindset that treats us all as clones when we’re clearly not.

    • Clancy says:

      12:32pm | 01/11/10

      I will give you a term that has no meaning…‘your rights at work’! And what exactly was the point of voting out Howard and work choices? Seriously, i would like to know? I did hear all the reasons why work choices was bad, fine, but so far as it is in my life experiences and the people i know, i can see all those bad things happening just as easily without work choices. For example, my wife has an ‘official’ knock off time of 5:30pm but is forced to work at least till 8:00pm, nearly 3 hours extra per day and under 50G salary and i am furious about it. Labor are nothing more than hot air, and as far as I’m concerned, we may as well be under Howard and work choices right now, makes no difference to me.

    • hot tub political machine says:

      01:01pm | 01/11/10

      +1 agreement with this article. Flexibility should mean win/win for both employer and employee. Unfortunately it has become a tainted word used by the avaricious and their pr folks. I don’t think even the most deluded hr people would argue that your employee doesn’t hear “wage gouging” when they hear the term workplace flexibility.

      The weird thing is, I just can’t understand why management doesn’t see what this is costing them. Ever worked in a place with low morale? Its like watching life in slow motion – not exactly conducive to meeting those workforce performance targets.

      When your underpaying/mistreating your employees is it any wonder they are taking more sick days, needing mental health treatment and dying of heart attacks a decade before retirement. I honestly wonder just how bad the education (both theoretical and in terms of experience) of some management people must be.

      Worse still, they also seem to have no reflexivity.

      None.

      Whatsoever.

      Its not like there is a lack of evidence to show how mistreatment of employees equals lower profits long term. Yet for many employers I just assume they lost their ability to learn anything new at some point (can cocaine do that to a person?) because many of them seem to treat staff crappier each year, get lower productivity every year, offer worse services/goods ever year, and get less customers every year.

    • Gregg says:

      01:26pm | 01/11/10

      Welcome to the Punch Ged and a few you have received.
      I think that whilst you could put to good use the
      Health/Nursing environment experience in using it as a yardstick, there is a whole lot more to learn about the various industries and businesses as to how they help Australia tick over but how in fact it is all affected by the global picture.
      ” Of course all working Australians want workplaces that allow them to get more out their working day and have more freedom in how they structure their working life. If these are the definitions of ‘productivity’ and ‘flexibility’ we are all for it. “
      sounds glorious but what if: ” workplaces need to be competitive for businesses survival and employment continuing, an employee committed to maximise output in a structure determined by production demands ” ,  also a definition of productivity and flexibility, is that to be ” we” are not all for it?
      Well sad as it may be, there’s an elephant in the room,  lower than low labour costs and for a large part very unregulated industry conditions.
      The ABC ” Slumming It ” [ in India ] last Tuesday a very revealing documentary as was Foreign Correspondent’s piece on China, part 2 of Slumming It on this week for perhaps more revelations.

      It is no surprise that the need to compete internationally raises issues where talk of productivity and flexibility can cause anxiety.
      Businesses need to be viable and more and more will find cheaper labour markets are the answer and it is obvious that workers will lose employment as it has been.
      ” Recently, the Prime Minister declared that one of her aspirations in government was to rescale the ‘productivity’ peaks of the Hawke-Keating era. ” and aspirations can be very weasily when it means nought.
      And the aspiration and productivity may be admirable but what is the economy to be based on?

      ” We could start by recasting collective bargaining as a friend to productivity, instead of an enemy. “
      Did some workers talk to you of how they would like to get more out of their day, perhaps even have an employer who would be prepared to pay more but unionism would not allow it, or did you just talk with unionised workers?
      ” The reasoning is simple: only a group of employees can offer real and meaningful productivity gains to an employer in exchange for a fair share of the reward.
      A single employee can cut no such bargain. “
      You are presuming that all employees in a group are prepared to work to achieve meaningful productivity gains.
      ” Now to that other poor, abused term: flexibility. On its face, no one should have any opposition to increasing workplace flexibility – who wants to work in rigid, inflexible ways? “
      For their own meaning, many unionists I would expect Ged for most would see it as maintaining what they have.
      ” But the term has been co-opted by some employer groups and businesses to simply mean “flexibility to lower wages and conditions”.
      And again we come back to the elephant in the room as for many it is going to be ” Compete, survive or perish and that is going to be for both businesses and employees “

      ” If we are going to talk about flexibility, it should not be at the expense of rights, fairness and proper workplace protections.  Nor should it be a code word for more outsourcing, more use of labour hire companies, more casual work. “
      What is fair Ged?
      Ever asked the Asian elephant driver or the 10 year old in India or Lagos workplaces?

      There’s a real world out there Ged, beyond the hospital wards and theatres, and also beyond Australia’s shores.
      ” Flexibility is a two-way street. Workers also need flexibility, so they can balance their job with their commitments outside of work. Getting this balance right will open the door to better productivity. “
      You reckon Ged!
      ” Words matter – their meaning matter – and if we want to have a decent debate about the Australian workplace we need to agree on the definitions first. “
      They certainly do Ged and I doubt you will find too many wanting to define the elephant, let alone talk about it or workplace ethics to be expected by both employers and employees.
      Put yourself in the position of a hospital matron with a 100 or so nursing staff, and yep the place has to be as about as regimented as an army for you do not go about treating people with staff having too much flexibility, not even with lifting patients.
      Any company has an operation to be kept on schedule and in that being maintained, employees need to committ to fulfilling their role and that many do not just makes the tasks of supervisors and managers all the more difficult but bet the balance of their life will be far from first thought in their mind.

      There’s a lot more than words, weasel or not that matter.

    • cybacaT says:

      04:44pm | 01/11/10

      In my experience having been a member of the TWU, unions are purely in business for themselves.  And I don’t mean the workers - the #1 aim of unions is looking after union leaders and union hierarchy.  Workers come a distant second, and as for businesses and the wider economy, they simply don’t give a stuff.

    • SME owner says:

      12:12am | 02/11/10

      Union = everyone is equal regardless of their worth to the business.
      AWA = the ability to reward those employees who work to the best of their ability in the best interests of the business.
      Modern Award = A set of minimum conditions that do not take into account any advances in mainstream employment.
      For instance, my business runs under a modern award yet there is no allowance for a fortnightly RDO that we offer our fulltime employees who work 8.56 hours per day. The award states that I cannot employ a casual except when the work required to be done is irregular, yet if the employee can prove that they are offered regular work ( like covering for RDO) on a regular basis they can then claim that this is now regular hours and are thus entitled to annual leave & other leave accrual whilst maintaing their present payrate that is 25% above the normal rate reflect this anyway!
      They can also only work 7.6 hours per day and then be paid overtime thereafter, yet this person cannot be offered banked hours so that eventually any time that they have worked in excess of 7.6 can be accrued in other ways.
      I have people working 7.30 - 4.26 yet when on their RDO I can only employ a single person from 07.30 - 3.36 each day, have to employ 2 people to comply with the award yet could quite easily do the same with one.
      THE ACTU WANTS FLEXIBILITY, shove your weasel words Ged as the ACTU simply doesnt have a clue about how the world works these days, you are living in the past and whilt you continue to dwell there the union movement will continue to become even less relevant than they are now. A government guarantee will not save you!

    • Lisa H. says:

      05:47pm | 02/11/10

      How about my working rights? I am a working mother with three small children and a small family business to pay for and keep going.

      My working rights seem to be:

      1. accommodate ad-hoc government work changes on the turn of a dice, regardless of the extra cost to ME PERSONALLY

      2. spend untold hours tallying up, researching and scrutinising the latest government costs, tax laws, superannuation expectations, and confusing changes to national award systems. Now, I have the pleasure of becoming a Centrelink office with new parenting payments!

      3. know that regardless of what happens in a workplace, as the employer I will always be in the wrong and can be expected to beggar myself in my prostrations to the system if - god forbid - anything is deemed to be wrong in the way I manage my business.

      4. I have the right to accommodate the whims, family and leisure needs of my staff members, regardless of the interruptions to my own family or leisure (haha as if) needs.

      5.accommodate the sick leave, holiday pay and family leave subsidies of staff by not being able to afford any of these payments for myself.

      6.. I have the right to work 24/7 shifts for years on end without any break in sight, nor with any apparent acknowledgement of my contribution from the government, or the community at large for that matter.

      7. I have the right to generate and fork over hundreds of thousands of dollars in tax when my family personally makes about $70,000 pa.

      I envy business owners whose industry or product allows them to hire from overseas. My dealings with overseas firms have left me impressed with work ethic, reliability, accountability and the end product of overseas workers. These guys are just hungry… and pleasant to work with! They are appreciate and respectful rather than cynical!

      I feel exhausted by the Australian work environment, and our determinedly socialist perspective culturally. I feel this is no place to try to improve your lot through individual enterprise.

      The sense of opportunity in this country has been put through a sausage machine by this Labor, with the strong support of the Australian community and media.

      In the mouths of the union reps, ‘productivity’ is, surely, the greatest weasel word.

 

Facebook Recommendations

Read all about it

Punch live

Up to the minute Twitter chatter

Anthony Sharwood

Dementor doing a good job for sweden #sbseurovision

Anthony Sharwood

Ukraine song pinches chord progression from The Verve's Bittersweet Symphony. Fo real #sbseurovision

Anthony Sharwood

RT @GerardDaffy: @antsharwood all the talk over there is the grannies will win.they entered to get a church built,feelgood story

Anthony Sharwood

These peole insult my grandmothjer, who was born in minsk, belarus #sbseurovision

Recent posts

The latest and greatest

We don’t deserve this huge, exciting scientific project

We don’t deserve this huge, exciting scientific project

I’d like to be able to say that sharing the world’s largest radio telescope with South Africa…

Mining money talks the loudest in Australian politics

Mining money talks the loudest in Australian politics

When North Queensland Liberal MP George Christensen got the idea of launching a new political organisation…

Please enter your password

Please enter your password

Help! I’ve succumbed to a crippling modern illness that can strike at any moment. Symptoms include:…

Nosebleed Section

choice ringside rantings

From: They must pay for one’s bitter disappointments

Michael S says:

"A teacher at Geelong Grammar had criticised her for using words that were too long, which had left her confused and had made her doubt her ability to write essays. She became ''quite distressed'' when her English marks began to fall." I can sympathise. My scholastic mentors conveyed to me a causal relationship… [read more]

From: Welfare for breeders is a bonus for everyone

Change Up! says:

I have no problem paying my taxes. As a single, childless person on a very decent income, I can afford it and not have my life severely altered. Plus I understand that my taxes paying for things like schools, childcare and infrastructure is ultimately a good thing. A better community is better for me… [read more]

Gentle jabs to the ribs

They must pay for one’s bitter disappointments

They must pay for one’s bitter disappointments

A private school girl’s family is sueing her elite, extremely expensive private school for not… Read more

243 comments

Newsletter

Read all about it

Sign up to the free daily Punch newsletter