Contempt ran deep for the old IR club with its protected unions and compulsory arbitration, spawning the short-lived “new right”, animating the HR Nicholls Society, and stiffening the resolve of a new wave of Liberals intent on dismantling a century of state-controlled employment relations and labour market rigidity.

The anti-club’s high water mark was, however, its ultimate undoing: John Howard’s WorkChoices and the removal of the no-disadvantage test from individual work contracts.
This over-reach led to the 2007 defeat by Kevin Rudd and to the current Opposition Leader, Tony Abbott declaring at the 2010 poll that WorkChoices was: “dead, buried, cremated” - in that order! It wasn’t the end of the Liberal recant.
Mr Abbott’s conclusion was that in going too far with WorkChoices, his party had broken its implicit compact with Labor’s former blue-collar base, Howard’s battlers.
It is not a mistake he intends to repeat.
But the danger now is in over-correcting. Liberal paranoia about WorkChoices - its furious objection to being linked with the brand reveals a massive glass jaw and has blinded it to its historic raison d’etre.
At present, it has no IR policy on the table having promised at the last election to leave Labor’s Fair Work Act untouched for three years.
In the ongoing QANTAS dispute, for example, Liberals so far at least have eschewed free-marketism instead calling initially for government intervention to force the parties to the negotiating table - even as the employer in question said no. The absence of Liberals demanding that the company be freed of constraints on its ability to manage has been glaring.
Julia Gillard on the other hand resisted intervention, declaring it was for the parties to resolve or to voluntarily seek the assistance of the umpire, Fair Work Australia.
Her detachment changed once the national carrier called everyone’s bluff with a snap shut-down.
This dispute has exposed political contradictions on both sides and shone a light on shortcomings of the reshaped IR landscape.
The Government’s decision to refer the dispute to FWA achieved the desired result of an immediate termination of all industrial action. But that did not stop the Opposition complaining that the IR minister should have ordered the cessation of action himself under another clause of the Act. Go figure.
For all the criticism of Alan Joyce for grounding his fleet, the tactic worked. In reality, he had little choice having weighed the costs of a one-off attention grabbing stoppage and the likelihood of a decisive ruling, against the “slow bake” of rolling action over months and a surrender of managerial control.
An outraged government claimed the only industrial action at the time was pilots wearing red ties and making announcements to passengers. But that ignores the fact that the airline was being bled by multi-fronted if piecemeal industrial action causing material harm to the ongoing certainty of services.
In an industry which relies fundamentally on predictability, such action is inordinately damaging even if it is hard to link any one strike or ban to nationwide economic harm - a test the minister needed to satisfy to justify direct intervention.
In any event, there are more fundamental questions here which neither side of politics has squared up to.
They go to managerial prerogative. Should managerial boards have the right to determine a company’s future direction? Should unions have the right to take industrial action to keep jobs on shore or guarantee job security? Until now, the Liberal Party’s answer to these questions would have been clear.
Complicating all of this is the status of QANTAS as a national carrier and cultural icon.
This cannot be ignored having also arisen in the last 24 hours regarding the possibility of General Motors Holden designing future Holden models abroad.
Both companies are indeed icons but both too have derived considerable marketing advantage from leveraging this status. Nonetheless, they are also publicly listed private companies.
Managers have a fiduciary responsibility to maximise returns to shareholders and to ensure the longer-term survival of their companies.
QANTAS operates in an intensely competitive, low margin, international marketplace against competitors with labour costs around 20 to 25 per cent lower.
That cannot go on forever.
Ignoring these facts might be politically convenient for both sides but will not serve the national interest if it damages the competitiveness or threatens the viability of the airline.
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