While we’re all focused, correctly, on the deep divisions within the Liberal Party, the government’s inability to perform the most basic political management tasks is arguably its most serious problem.
Less than a week after the Fair Work Commission’s decision to slash Sunday and public holiday penalty rates for hospitality and retail workers, we’re now up to five separate positions from the government:
- It’s the decision of the independent umpire (ignore that the Coalition has not merely overturned decisions by industrial relations umpires but got rid of umpires entirely);
- It’s Bill Shorten’s fault because he set up the Fair Work Commission and the award review process, and, when he was a union leader, pursued deals that traded off penalty rates;
- Penalty rate cuts are a good thing and will create employment — and are even a “gift” to young people, in the words of one government MP;
- That the government has no position or opinion, as Treasurer Scott Morrison and his departmental secretary John Fraser said yesterday;
- That penalty rate cuts are a good thing but current workers should not be disadvantaged, so existing workers’ salaries should be grandfathered (Eric Abetz’s proposal today).
This morning, Malcolm Turnbull seemed to suggest a sixth position — a variant of Abetz’s, in which cuts to penalty rates would not be grandfathered (the commission, understandably, doesn’t like grandfathering, which creates multiple classes of workers under the same award) but would, in effect, be offset by normal increases in base award levels.
It’s remarkable to say this, but Abetz has shown greater political judgement than the government. The man who warned we were all about to experience a wages explosion in 2014 (we wish, Eric, we wish) has identified the relatively straightforward policy and political response a government, whose members have long demanded penalty rate cuts, might have been expected to have had prepared in advance of the commission decision.
Instead, the government has had multiple positions and non-positions, including trying to blame Bill Shorten for something its members have spent years saying is a good thing. So here are some basic questions Coalition MPs should be asking the government’s leadership group:
- Did the PMO, in consultation with Employment Minister Michaelia Cash’s office, have a communication plan for the announcement of the Commission’s decision?
- Was it circulated to ministers, including the Treasurer?
- Was a plan for the handling of the issue at Senate estimates drawn up and circulated?
- Is there a better way for MPs to learn what the government’s position is than listening to what the Prime Minister tells Sabra Lane?
The reason this sort of basic stuff is so important is that, without it, it’s virtually impossible to do anything in government that is even mildly controversial. For a government that has both become a byword for failing to deliver and is facing a potentially devastating Labor campaign to link it to wage cuts, it’s particularly problematic.
And it’s a problem that manifests itself time and time again. The PMO doesn’t seem to be aware of what key political moments are coming up, or if it is, it doesn’t do anything about them, or if it does, it’s wholly ineffectual. Whether it’s having the Prime Minister’s agenda-setting opening address of the political year on the day political donations data came out, or Scott Morrison’s brain snap to link the omnibus bill to paying for the NDIS, or tying your political fortunes to “clean coal” without checking with energy companies whether they’d ever be interested in it — Tony Abbott didn’t cause any of these, they were all self-inflicted wounds. And they just keep happening.
Love yr 5 point summary of the varying and contradictory / hypocritical positions the Govt has contorted on this, Bernard. There may be a number of marginal seat LNP members shuddering about the relationship of this issue to Workchoices. The difference is no -one saw this bit of FWC bastardry coming, thus I’d suggest it’s likely there is no strategy or warchest organised in advance by the ACTU to fight it.
The LNP are clearly terrified of provoking a Work Choices fight on the issue. They have no comprehension just how creepy their weird evasions sounds.
Calling it what it is, there is a turd sitting in the LNP corner and they are frantically pointing the blame in every direction except where it rightfully belongs.
We need some perspective in this debate about penalty rates.
On 6 January 2017, the SMH carried a report by Nick Toscano and Sarah Danckert on the topic of executive salaries. They reported that the average take home annual pay for a CEO of an ASX top 100 corporation in the 2015 financial year was a mere $5.54 million.
Helpfully, the correspondents noted that this represented $15,000 per day. They also noted that our average impoverished executive would have earned the $81,000 average full time adult earnings in the first working week of the year.
There is a serious issue of fairness and equity here, and we must think for a moment who really benefits here.
The proceedings in the Fair Work Commission to reduce the remuneration of award covered employees were initiated by organisations representing the interests of employers. Small business was represented. However, so were the ASX top 100 companies in the retail and fast food industries.
In fact, it is these large companies that benefit most from the decision.
So, it is a case of the highly-paid setting out to reduce labour costs, or to fund wages for new employees, by reducing the remuneration of existing low paid workers.
Good luck allowing that to happen Malcolm. Or is that what “jobs and growth” really means?
How independent is the FWC? As you have previously noted Bernard, it has been stacked with LNP appointees, so not very, but no one else is mentioning this. Not even the Labor party.
Bill Shorten has noted though that Turnbull has managed to overturn a few other ‘independent’ decisions, this one is just too hard.
Any Labor leader, except one so horribly compromised & hypocritical (or just plain uncaring/comprehending?) as gumBoil Shlernt could have brought people out onto the streets over this prime piece of robber baron rapacity.
The cloud of moths in a suit (TM Grundle) will never be forgotten for having cut the rates of some of the lowest paid workers in the country in exchange for bungs to his preselection campaign.