The Australian industrial relations system has been flawed since Federation more than a century ago.
It goes back to the Constitution which limits the Commonwealth’s industrial relations power to deal with industrial disputes that cross state boundaries. The Founding Fathers’ aim was to limit Commonwealth power.
The opposite occurred. National unions were created in order to create the inter-statedness required to attract federal jurisdiction. And disputes were created to attract the constitutional “dispute” require. The result was decades of disruptive national dispute and a whole industrial-relations system predicated upon friction, mistrust and hostility. Yet in most businesses the interests of employees and employers are similar.
This is about to change. This week the Coalition introduced its industrial-relations changes. The changes are possible because of two things: a Coalition majority, of sorts, in the Senate and an evolution in the view of the High Court about the Commonwealth power.
A number of cases now suggest that virtually any law saying a corporation can or cannot do something will fall within the Commonwealth’s corporations power. The earlier view was that the corporations power was more limited. So a law saying corporations will do their industrial relations this way, not that way, will be valid.
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