Coalition says unfair dismissal to be focus of IR policy, but lawyers wary of further changes

The Coalition says small businesses and individual workers will take precedence over big businesses and unions in its industrial relations policy.

Opposition workplace relations spokesman Eric Abetz says while the Coalition will work within the Fair Work Act framework, it is concerned about “burgeoning” instances of employers paying “go away” money in unfair dismissal cases, and the huge costs for businesses of fighting such cases, even successfully.

Abetz also drew attention to union right-of-entry rules, good faith bargaining and deficiencies in individual flexibility agreements, The Age reports.

The government is set to review the Fair Work Act next year.

Abetz’s comments follow a promise from Opposition leader Tony Abbott this week to take a “strong and effective” IR policy to the next election, and calls from the Australian Industry Group for tweaking of the two-year-old act.

But industrial relations lawyers say there is a great reluctance from employers to embrace systemic change, after two major changes in industrial relations laws over the past five years.

Mark Dunphy, partner and head of Hall & Wilcox’s employment practice, says the last thing businesses need is another system in such a short space of time. He says any change would need to be specifically targeted at deficiencies in the system.

Dunphy says while concerns about Fair Work include the general protections and aspects of the way unions can take industrial action, the system is working.

“If you look at the rest of the changes that the Fair Work Act introduced as compared to WorkChoices, most have worked pretty well.

 “The more they’re not changed, the longer people have to understand them,” Dunphy says. 

Former Howard Government minister Peter Reith – who narrowly lost a bid to become Liberal Party president this week – has also ratcheted his campaign for industrial relations reform.

Reith has told The Australian Financial Review he was speaking with key business figures about financial support for an IR think-tank, which would “fill a gap in the debate about workforce reform”.

According to the report, Reith has already struck a deal with the Institute of Public Affairs to set up a unit which will promote labour market liberalisation.