Gillard’s first message for SMEs

New Prime Minster Julia Gillard did it again this morning, emphasising that a key reason for her decision to seize the leadership from Kevin Rudd was a need to “protect workers’ rights” from being attacked by Coalition leader Tony Abbott.

As we argued yesterday, Gillard’s background as the architect of the Fair Work industrial relations regime has not made her a popular figure for many entrepreneurs, who have seen unfair dismissal protections reduced, a new system of awards introduced, new flexible work obligations and union rights beefed up.

Clearly, Gillard is trying to make IR a key battleground in the next election. She wants to create the impression that Abbott will bring the Howard Government’s WorkChoices back to life, and, as Labor did very successfully in 2007, rally Rudd’s famous “working families” around the ALP banner once again.

It’s a reasonable strategy, and one Abbott will need to work hard to defend against.

But in terms of winning the SME vote, Gillard does run some risks by constantly reinforcing the need to protect workers’ rights.

Because while her attacks might be aimed at Abbott, there is more than a hint here that employers will automatically rush to introduce draconian workplace rules and rip off workers if given half a chance. Bosses are inclined to be bad, and workers need to be protected.

Gillard is playing to her union constituency, of course, and after the power they demonstrated in Rudd’s dumping, who can blame her?

But Gillard should also recognise that with most Australian businesses heading hurtling towards a skills shortage, the last thing they want to do is introduce any rules that might be unfriendly to staff. Pay rises, flexible working conditions and other retention strategies will be the order of the coming years.

While SMEs will understand the politics at work here, they do not want to see Gillard reinforcing the old bosses versus workers stereotype.