THE resource industry strongly endorses technical changes to the Fair Work system which will allow a third party which is impacted by damaging strike action to apply to the Fair Work Commission (FWC) to suspend or terminate that action.

Steve Knott, chief executive of resource industry employer group AMMA, says the Commonwealth’s changes this week will provide much-needed industrial powers for the Western Australian Government as well as employers facing crippling strikes.

“The new regulation will allow a minister of a state which has not referred its industrial relations powers to the Commonwealth, to apply to the Fair Work Commission for the suspension or termination of protected industrial action,” Mr Knott says.

“Such a power exists presently for the ministers of all the states except for Western Australia, where industrial action often threatens both state operations and international trade activities of great national significance.

“The change fixes this anomaly which Labor did not address, despite calls from the WA Government to allow it the same legal capacities as its counterparts in other jurisdictions.”

Importantly, the new regulation will also allow innocent third parties directly impacted by damaging strike action to pursue relief through the FWC.

“This move recognises that strike action sometimes has far broader impacts than just the direct parties, including hurting employers and employees on both sides of the supply chain and disrupting economic activities more widely,” Mr Knott says.

“A current example is the Teekay Shipping dispute, where a small group of well-paid tug boat employees are threatening to halt the $100 million per day export operations of Port Hedland.

“At a state level, such a stoppage would cost Western Australian taxpayers around $7 million per day in revenue foregone in lost iron ore royalties. Over three days that is the entire state budget for homeless support or the cost of building a new primary school.

“Ultimately, the Fair Work Commission will decide how it deals with these matters on a case-by-case basis, but clearly any workplace system that allows a third party to be so heavily impacted by strike action should be amended so they can state their case to the tribunal.”

While a small change to the Fair Work Act 2009, the move also provides much-needed scope to apply to stop strike action where it is threatened, and before it can wreak economic havoc.

“It is well recognised that threatening to take industrial action can inflict as much commercial disruption as the action itself. This has been exacerbated under the Fair Work Act, where union tactics has often seen notice given to strike and then withdrawn at the last minute,” Mr Knott says.

“There is also a greater cost to consider to our international reputation as a reliable supplier of resource commodities. This reputation has been hard won but can be easily lost.

“Australia does not have a monopoly on such exports and provisions such as those introduced by the government this week will assist in minimising the impact of unnecessary strike action on our national reputation and global competitiveness.”

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THE Council of Small Business Australia (COSBOA) has called on major retailers Coles and Woolworths to voluntarily divest in order to free up competition and innovation in Australia.

The call comes as part of COSBOA’s submission to the Harper Review – the first comprehensive review of competition laws and policy in Australia in more than 20 years. The review panel, headed by economist Professor Ian Harper, recently released its Issues Paper and has asked for stakeholder submissions before the final report, expected to be released in 12 months.

"We have provided a range of recommendations and solutions, but the best way to solve this problem once and for all is to divest Coles and Woolworths,” says COSBOA CEO Peter Strong.

“We understand that involuntary divestiture is unlikely and difficult, so we call upon the boards of Woolworths and Coles to voluntarily break themselves up into several companies.

"They should do this in a way that benefits their shareholders and frees up competition and innovation.

“This is not just about competition between retailers; our submission highlights the negative effects on innovation and productivity that is currently occurring in Australia,” says Mr Strong.

“One major cause is the stifling impact on the great innovators of Australia, small business people, by the domination of a few large companies. Our standard of living will decrease unless we can liberate our innovative spirit from the chains of mental bondage created by the overly powerful duopoly and large landlords.”

Mr Strong points out that ACCC Chairman Rod Sims has also highlighted productivity as an issue that needs to be addressed and laments the loss of a pro-competition culture. Sims says innovation will come from competition, real competition, and the recommendations from the review must make competition free and fair.

Mr Strong adds: "There are many other negative outcomes that come from this domination by a few, including effects on our culture. Small business people can enrich and grow our culture through their activities, while the big end of town can often be predictable and cultivate consumerism rather than a culture of community."

See COSBOA’s full response to the Competition Policy Review HERE

See a copy of Rod Sims Speech HERE

www.cosboa.org.au

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VECCI Chief Executive Mark Stone said the State Government’s announced 4,000 additional weekly train, tram and bus services is welcomed by VECCI, as a strong economy is depend on a reliable, user friendly and efficient public transport system. 

"The boost to services will move more commuters and improve service frequency across these important, interconnected transport modes," Mr Stone said.

"Improved reliability will benefit commuters, including employees transiting to and from work, shoppers and tourists.

"Employers whose staff are dependant on public transport can expect less risk of employees being delayed due to service cancellations or bottlenecks.

"The increase in services will be of particular benefit to existing high population suburbs that are reliant on public transport, including Dandenong, Pakenham, Cranbourne and Frankston.  

- It is also positive to see improvements to regional services, with V/Line’s Ballarat, Bendigo and Traralgon lines to operate on new timetables that will help increase service frequency and reliability. 

"Improvements to our public transport system make Victoria an even greater place to live, invest and work and we welcome this announcement."

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the peak body for employers in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

www.vecci.org.au

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THE Institute of Public Accountants (IPA) has been joined by a number of leaders and key stakeholders at a special roundtable discussion on June 25 of major issues facing Australia’s small business sector. 

The IPA’s first Australian Small Business White Paper Summit held today in Parliament House in Canberra, was designed to provide a credible and influential voice on key policy matters impacting small business.

“We have brought to the table, substantial research, practitioner insights and industry views to formulate the first industry-led Small Business White Paper,” said IPA chief executive officer, Andrew Conway.

“I am very grateful to today’s participants who echoed our passion for small business, with genuine debate on a broad range of key issues.

“However, this is just the starting point; the commitment made today is to facilitate ongoing discourse to ensure when small business speaks, it does so with the support of industry, evidence based research and on a platform that aims to boost productivity of our nation’s small businesses.

“The importance of small business growth as a driver of Australia’s productivity is growing rapidly and we must do what is in our power to develop economic policy that charts a sustainable future for small business,” said Mr Conway.

The Australian Small Business White Paper Summit covered six key areas of focus:

1.    Australia’s small businesses are appropriately regulated; providing a safety net without stifling entrepreneurship.

2.    Australia’s small businesses operate on a level playing field.

3.    Links to our regional trading partners are facilitated to open export markets for small business.

4.    Australia’s small businesses have access to responsible finance.

5.    Australia’s small businesses are encouraged to innovate.

6.    Australia’s taxation system serves to encourage small business growth rather than stifle it.

www.publicaccountants.org.au

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