Institute for Private Enterprise » Press Releases

Climate Change. Some Facts

Des Moore — Sat, 09 Apr 2016 06:03:48 +0000

You want to know the facts about climate change?

You have a marvellous opportunity to do so next Thursday, 14 April

Expert economic and statistical analyst, Des Moore, assisted by well known prominent physicist Dr Tom Quirk, will bring you up to date.

Where?

At a buffet lunch and Q&A after talk to be held at the Australian Institute for International Affairs, Victorian branch, from 12.30 to 2.00pm.
Cost $35/45 for members/non-members (less for students).

This is located at Dyason House, 124 Jolimont Road, East Melbourne.

You should make a booking by emailing to events.vic@internationalaffairs.org.au or calling 9654 7271.

Don’t forget that Australia and other countries are about to sign the agreement reached in Paris last December. Are they doing the right thing?

More Needed than Heydon RC Recommends & Turnbull Proposes So Far

Des Moore — Sat, 02 Jan 2016 23:03:18 +0000

So far I have read only Volume I of the Overview and introduction of the final report of the Heydon Royal Commission into Trade Union Governance and Corruption. Volumes 2-4 largely deal with specific cases and Volume 5 with policy and law reform. Based on the Overview there appears to be a first rate analysis for the Turnbull government to use in framing major reforms of regulatory arrangements covering the role of trade unions and relations between employees and employers.

Of course, the report does not itself deal directly with the regulation of relations between employees and employers under the Fair Work Commission. Rather, it presents eleven case studies involving what the Commissioner judges to be corrupt or inappropriate conduct by certain unions or certain union officials. The conduct uncovered in these studies reveals the provision of benefits to a union or union member in return for employers receiving industrial peace or coming on favourable terms with the union or its leader or being “allowed” (by the union) to pay less than award rates to some employees. There are also case studies where union leaders have been able to use union funds for their own purposes (the Health Services Union incidents have already been well publicised in this regard).

While there are only 11 case studies, the report claims the aberrations are not the work of a few rogue unions or individuals. “The misconduct exhibits great variety. It is widespread. It is deep-seated”. In many parts of the union world “there is room for louts, thugs, bullies, thieves, perjurers, those who threaten violence, errant fiduciaries and organisers”. Nearly 100 individuals or organisations have been referred for prosecution, including 48 for criminal matters. Nor do employers escape criticism: in addition to the large number of union officials/unions recommended for prosecution, a number of business officials are too. And it is recommended that the Fair Work Act be amended to make it a criminal offence for employers to offer a benefit to a union or union official.

The Turnbull government’s press release says in response to the Heydon report that it will “re-introduce legislation… “to re-establish respect for the rule of law in the construction industry”; introduce additional legislation to strengthen the Registered Organisation Commission; have the police taskforce continue its investigations of possible criminal action by unionists; and establish a working group of regulators to deal with civic referrals by Heydon. It will also announce a detailed response in early 2016. All of these are desirable and necessary bits of policy flowing from Abbott’s initiative in establishing the Royal Commission.

However, at the heart of the many deficiencies identified by Justice Heydon are the advantages given to the trade union movement by the Fair Work Commission established under the Gillard government. The Heydon analysis reveals that these regulatory arrangements are unworkable. It could not be a better time both economically and politically to announce that the existing regulatory arrangements under the FWC will be replaced and that, as there is today no intrinsic imbalance of bargaining power between employers and employees, individual agreements will be freely allowed. The media response suggests there is a basis there for pursuing such a major reform of policy. Note in particular the editorial comment in the SMH viz “It is clearer than ever that the union-linked Labor Party of 2015 can never argue for fairness and good governance while the union sore festers”. The editorial in The Australian is similarly calling for reform (both eds available here - Dec 30 and Dec 31).

Yet the relatively limited nature of the Turnbull government’s press release (why stop at regulatory reform in the construction industry) is of concern. What was the government doing while the proceedings of the Heydon commission churned out over two years provided example after example of deficiencies indicating that existing regulatory arrangements needed fundamental reform? One might have expected a much wider response when the report was released.

It is reported that Shorten has indicated that Labor is prepared to fight an election on workplace relations. But there is no need for that. If the detailed response to Heydon’s report promised for early 2016 announces a meaningful new policy aim on workplace relations, the Heydon report provides the evidence for a debate during 2016 that “educates” the public and gets its support in the lead up to an election at a normal time.

Employment Grows Faster than Budget Forecast

Des Moore — Thu, 10 Sep 2015 12:12:23 +0000

MEDIA RELEASE – The HR Nicholls Society

19 September 2015

Employment Grows Faster than Budget Forecast

The August ABS Labour Force figures show an encouraging growth of 2.0% s.adj in employment over the past twelve months. This is faster than the 2015-16 budget forecast (1.5%) and than the growth in the working age population of 1.5%. This means that there has been a significant increase (2.2%) in the participation rate ie the proportion of the working age population which is employed or actively looking for work.

Labour Force – Increases Since August 2014

	000s	Percent
Employment	235	2.0
Working Age Population*	284	1.5
Participation Rate	265	2.2
Unemployed	30	4.0

This confirms that the pick-up in the economy is being sustained. Particularly significant is that the states adversely affected by the mining slow down (Western Australia and Qld) have experienced increases in employment. Only Victoria had a reduction.

Although the unemployment rate has fallen slightly to 6.2% (S adj), the much more important test is whether the growth in employment is keeping up with the working age population increase. This is the case.

However, the under-utilisation rate of 14% indicates that there remains a major unsatisfied demand for work.

Changes must be made to the existing regulatory legislation, and the administration of it, to remove the bias against employers evident in the existing arrangements. The reforms needed will be discussed at the XXXVI Annual Conference of the HR Nicholls Society entitled “The Fair Work Act – an Australian idiosyncrasy” to be held in Melbourne on Wednesday 23rd of September at Roy Morgans in Collins St. Speakers include: Mr Tony Shepherd, chairman, WestConnex Delivery Authority, past president of Business Council of Australia and Stuart Barklamb, Executive Director, Australian Mines and Metals Association.

Contact: M Moore on 0403 345 546

Publicity Officer: Des Moore (9867 1235)

January Employment & Unemployment

Des Moore — Thu, 12 Feb 2015 07:02:47 +0000

MEDIA RELEASE – The HR Nicholls Society

8 February 2015

Unemployment Up 0.4% since last January

The unemployment rate of 6.4% (s adj) in January is 0.4 percentage point higher than it was in January 2014 as was the unadjusted figure of 6.8%. Moreover, the increase of employment of only 1.6% over the past year continues to fail to keep pace with the growth in the working age population of 1.8%.

Given the slower growth in the economy, which the Reserve Bank expects to slow further in the lead up to the election, it is clear that the regulatory arrangements (wage awards and other regulations) are pushing unemployment higher.

These developments in the labour market emphasise the need for deregulation of workplace relations and the establishment of a much more flexible market.

Although the growth in wages is now no higher than inflation, Australia’s wages have been growing faster than in developed countries, resulting in reduced competitiveness. While the reduction in the exchange rate will help offset that, that is not the best way of improving competitiveness

Publicity Officer: Des Moore (9867 1235)

Unemployment Up – But Employment Increases

Des Moore — Thu, 11 Dec 2014 07:50:37 +0000

MEDIA RELEASE – The HR Nicholls Society

11 December 2014

The unemployment rate of 6.3% (s adj) has reached a 12-year high, increasing slightly from the previous month.

However, data reveals a modest improvement in the labour market as employment rose by 42,700 (0.4%) in November 2014. Despite this, the growth of 1.5% in demand for labour over the past 12 months is still failing to keep pace with the growth in the working age population of 1.8%.

Youth unemployment has also continued to increase significantly. In November 2013 the unemployment rate for persons aged 15 to 19 years was 16.5%. The latest figures show the rate to have risen considerably to 20.1%. February 1997 was the last time that youth unemployment was greater than what it is today. Such a record high level indicates poor employment prospects for first-time job seekers.

Additionally, the Australian labour market is also faced with the issue of growing underemployment. The labour force underutilisation rate for November 2014 is 15.0%, the highest rate since November 1997. This increase is largely due to the growth in part-time employment in comparison to full-time employment. The latest figures show that while part time employment increased by 40,900 in November full time employment increased by 1,800.

These developments in the labour market emphasise the need for deregulation of workplace relations and the establishment of a much more flexible market.

Publicity Officer: Des Moore (9867 1235)

HR Nicholls Press Release on Submission to Royal Commission

Des Moore — Mon, 03 Nov 2014 10:11:26 +0000

Below is a Press Release on the submission lodged with the Royal Commission by the HR Nicholls Society. The submission, drafted by two prominent lawyers, shows the many advantages which trade unions have under the existing legislation and its administering body, the Fair Work Commission headed by a former trade unionist.

The HR Nicholls release follows the release last Friday by Stoljar (counsel assisting the RC) of 1000 pages (!) of his findings and his assessment that a number of high-profile union leaders should be charged. Attached is an article in today’s AFR outlining Stoljar’s conclusions and summarising what the AFR author describes as the RC’s “preliminary reform proposals” under the heading Recommendations.Note the heading of the article – “Unions fight for their lives”

Stoljar’s list of those who should be charged does not include Julia Gillard, although he concludes her behaviour was “questionable”. Whether Commissioner Heydon reaches such a limited conclusion remains to be seen. Andrew Bolt’s article implies he may not.

More importantly, it is to be hoped that Commissioner Heydon does not go along with what appear to be Stoljar’s limited recommendations on the reform of the existing legislation and Fair Work Commission. At the heart of the corruption and criminality are the advantages given to the trade union movement, including the effective prevention of individual bargaining and the resultant collective bargaining process which “unionises” relations between employers and employees and has adverse economic and legal effects. There is no basis for unions having such advantages and completely new regulatory arrangements are required.

Employment News is All Bad

Des Moore — Thu, 09 Oct 2014 12:46:39 +0000

MEDIA RELEASE – The HR Nicholls Society

9 October 2014

Using the unadjusted labour force data, the September figures show an unchanged unemployment rate of 6.1%. But this apparent “stability” disguises the deterioration in the labour market.

Not only did employment fall by 30,000 but those not working or seeking to work increased by 45,000. In effect, those who lost their jobs did not even try to get back into the work force.

This is not a one off development. While over the past 12 months employment did increase by 46,000 or 0.4%, those not working or seeking to work increased by 242,000 or no less than 3.7%.

In short, the demand for labour has not kept pace with the growth in the working age population (15 years and over) and retirees and the youngees with no work prospect have increased. This is reflected in the fall to 64.5% in the participation rate from 65.2% a year ago.

How has Australia got to this parlous situation?

While the end of the mining boom has contributed, the main reason is that Australia has a highly regulated labour market which will not allow temporary downwards adjustments in employees’ conditions in other industries. These conditions deter employers from risking additions to investment and jobs.

Unless early action is taken to remove the Fair Work arrangements, the Abbott government will not only fail by a long way to achieve the employment growth of 1.5% in the 2014-15 budget, but also the election jobs target of one million over 5 years.

Publicity Officer: Des Moore (9867 1235)

Unemployed up by 15%, Employment Falls Too

Des Moore — Thu, 07 Aug 2014 23:18:26 +0000

MEDIA RELEASE – The HR Nicholls Society

7 August 2014

The increase in July unemployment to 6.4% seasonally adjusted rate (from 5.6% in July last year), and the accompanying small fall in employment since last month, highlight the need for reduced regulation of workplace relations in circumstances where the economy is growing below trend.

Unless regulations are reduced the Abbott government’s budget forecast of a 1.5% increase in employment in 2014-15 will not be achieved and productivity growth will remain sluggish.

The regulatory problem is highlighted by the fact that the growth in the working age population (WAP) is twice as fast as the growth in employment over the past 12 months – employment up by only 0.9% while the WAP increased at double that rate (1.8%).

Before the Fair Work legislation employment was growing faster than the WAP and the participation rate was growing. Over the past three years that rate has fallen from 65.4% to 64.8%.

On top of the twelve months increase of about 15% in numbers unemployed, this indicates continued large increases in those who have given up actively looking for work – the so-called drop outs

Labour Force – Increases Since July 2013

	000s	Percent
Employment	1041	0.9
Working Age Population*	3421	1.8
Unemployed	96	14.9

*WAP is civilian population aged 15 years and over

Sufficient evidence of the monopoly position of unions has already been given to the Heydon Royal Commission to warrant immediate reforms and allow employers much greater freedom to determine employment conditions. It is anomalous, for example, that the MUA has to be taken to the Federal Court in an attempt to reduce its monopoly powers.

The proposals to reform the ABBC and other minor reforms are welcome but have yet to be implemented and will not themselves change the behaviour of militant unions.

Publicity Officer: Des Moore (9867 1235)

Employment Grows –But Faster Growth in Drop Outs

Des Moore — Thu, 12 Jun 2014 00:44:22 +0000

Employment Grows –But Faster Growth in Drop Outs

MEDIA RELEASE – The HR Nicholls Society
12 June 2014

The May ABS Labour Force figures show growth in employment continuing but at a much slower rate than the growth in the working age population (WAP) – over the past 12 months employment rose by only 0.9% while the WAP increased at double that rate (1.8%).

This indicates further large increases in those who have given up actively looking for work.

Labour Force – Increases Since May 2013

	000s	Percent
Employment	994	0.9
Working Age Population	3398	1.8
Unemployed	43	6.4

Although the unemployment rate is unchanged at 5.8% (S Adj), this does not provide an accurate indication of the weakness of the labour market. A much more important test is whether the growth in employment is keeping up with the working age population increase. Before the Fair Work legislation employment was growing faster than the WAP.

Unless there is a major improvement in labour demand the Abbott Government will not achieve the budget forecast employment growth of 1.5% in 2014-15. And Abbott’s pre-election jobs target of a one million increase within five years will fall well short.

It is now abundantly clear that urgent changes must be made to the existing regulatory legislation, and the administration of it, just to reach the “sensible centre” and remove the bias evident in the existing arrangements. The proposals to reform the ABBC and other minor reforms are welcome but have yet to be implemented and will not themselves change the behavior of militant unions.

Publicity Officer: Des Moore (9867 1235)