Business Blockbuster - Helpng business to be more visible on Google

Daily Bulletin

Grattan on Friday: Penalty rates – Shorten's own goal becomes Turnbull's political problem

  • Written by: Michelle Grattan, Professorial Fellow, University of Canberra

The latest reflection on just how appalling things are in Canberra politics came this week from former Treasury head Ken Henry, who’s now chairman of NAB.

“Our politicians have dug themselves into deep trenches from which they fire insults designed merely to cause political embarrassment. Populism supplies the munitions,” Henry told a conference in Canberra. “The country that Australians want cannot even be imagined from these trenches,” he said.

A senior player in reforms under Hawke-Keating Labor and the Howard government, Henry contrasted the current dysfunction “to earlier periods of policy success – where politics was adversarial, every bit as partisan – but when the tribal tensions within parties were generally well managed and the political contest appeared to energise policy, not kill it”.

Henry may be slightly romanticising the past, as often happens when people look back to that period of policy-rich achievement. There were more than a few unedifying times in the fights of those years. But his general point is right.

He and his fellow heavyweights in the banking industry have just had a close-up view of the Coalition’s ugly tribalism with Treasurer Scott Morrison’s tantrum over former Labor premier Anna Bligh’s appointment to the Australian Bankers’ Association. It was short-sighted, counter-productive behaviour.

The fact that some in the Coalition saw Bligh’s appointment as the banks writing off the government was revealing. Given the volatility of politics, the bankers would hardly be predicting the next election’s outcome now – the interpretation suggests more about the mindset of alarm in Liberal circles.

When governments are flagging there is always talk of a “reset”. We’ve been hearing it this year, just as we did in the Gillard days.

But looking to a “reset” is more often than not to be staring at a mirage. It’s true that in 2001 the Howard government had a spectacular “reset”. It changed some decisions and crafted a canny budget, but the biggest factors in cementing its turnaround were Tampa’s arrival and September 11.

Some Coalition MPs believe Turnbull’s burst of aggression – over Bill-and-the-billionaires and Labor and renewables – will give the government its “reset”. It’s doubtful. People don’t like abuse, and in the energy debate, this week’s Essential poll suggested the government is struggling.

So looking ahead, there are no quick fixes, or answers based in a superficial change of style. The government faces the toughest slog, as it contemplates a budget that’s difficult to put together and the challenge of delivering an energy policy.

There will be pressure to spend in the budget to gain credibility on health, which cost the Coalition votes last July. Stories are already appearing about ending the freeze on the Medicare rebate. But where will offsetting cuts be found?

And, given the Senate gridlock on savings, can the government produce a budget that doesn’t alienate voters but keeps the ratings agencies at bay and Australia’s AAA rating intact?

As for energy security, the government’s “clean coal” frolic is genuinely hard to understand – beyond fears about regional seats and pressure from the Nationals - given that the word from the sector is that investors won’t go there. Eventually hyper rhetoric will have to give way to concrete measures that can fly.

High electricity prices are a politically sensitive cost-of-living issue and the government is trying to pin the blame for them, and for blackouts, on Labor’s commitment to renewables.

But suddenly there is a new cost-of-living issue, with the Fair Work Commission (FWC) decision on Thursday to cut Sunday and public holiday penalty rates for those working under the hospitality, fast food, retail and pharmacy awards.

This is not the government’s decision – the FWC is independent and the government didn’t even put a submission to its inquiry.

And, in an ironic twist, Bill Shorten when workplace relations minister paved the way for this decision, with amendments requiring the review of industrial awards to cover the area of “additional remuneration” for employees working on weekends, public holidays, shifts and the like.

The Gillard government thought it was writing protection of penalty rates into the award system. Julia Gillard, addressing an ACTU summit, said: “We will make it clear in law that there needs to be additional renumeration for employees who work shift work, unsocial, irregular, unpredictable hours or on weekends and public holidays.”

Labor says it never envisaged the commission would reduce rates. Let alone when the bench members are overwhelmingly ALP appointees.

Although it did not make it, the decision is in line with general government thinking for industrial relations reform. But the government finds itself caught between its base, that will applaud the cut, and many voters whose hip pockets will be hit.

It argues the decision will boost employment, as the commission says. However the job increases – which neither the commission nor employers can quantify – are likely to be longer in coming and less visible than the pay losses.

Shorten has potential to make hay with the decision, helped by the unions. Those facing smaller pay packets are unlikely to be diverted by the government highlighting his role in getting the review of penalties rolling.

Labor says it will intervene when the commission on March 24 considers transition arrangements; it also is looking to some parliamentary initiative. If (as seems likely) these paths come to dead ends, it is promising legislation if it wins the next election to clip the wings of the commission.

The government faces a dilemma as to whether it intervenes to put a view on how long the transition should be.

There is a parallel here with the problem the government is facing with its Omnibus Bill which reforms child care while shaving family tax benefits. In each case, people stand to lose something.

The big difference is that with the penalty rates the government isn’t the body making the decision and can say the judgement of the independent umpire should prevail. But if Labor can make the Coalition wear some of the odium for low-paid workers losing dollars, this will be another burden for Turnbull.

Authors: Michelle Grattan, Professorial Fellow, University of Canberra

Read more http://theconversation.com/grattan-on-friday-penalty-rates-shortens-own-goal-becomes-turnbulls-political-problem-73539

Business News

The Growing Demand for Durable Plastic Packaging Supplies Across Australia

Why Do Australian Businesses Need Reliable Plastic Packaging Supplies? Businesses need packaging that can withstand everyday handling, storage, and distribution without creating avoidable delays. Pla...

Daily Bulletin - avatar Daily Bulletin

Office Cleaning Melbourne: Choosing the Right Scope for Your Office

A well-planned office cleaning Melbourne arrangement starts with a clear understanding of the premises and the people who use it. An office may include private work areas, shared desks, reception, mee...

Daily Bulletin - avatar Daily Bulletin

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Plumbing Call-Out Fees in Perth Explained

When you hire a plumber to fix a problem with a dripping tap, leaking pipe, or whatever it might be...

Workshop Tool Maintenance: A Practical Guide to Drills, Sanders and Table Saws

A drill that strips every screw head. A sander that leaves swirl marks however long you work the pan...

How Architecture and Engineering Firms Can Improve Project Profitability

Project profitability remains one of the most persistent challenges for architecture and engineering...

The Blossoming World of Fresh Flower Delivery: An In-Depth Exploration

In recent years, the demand for fresh flower delivery in Sydney has soared, driven in part by the ...

How Penrith SMEs Can Keep Stock and Equipment Working for the Business

For Penrith SMEs in 2026, efficient inventory starts with reliable stock data: what is on hand, wher...

Cybersecurity Services and Solutions for Complete Digital Protection

Businesses leverage Cybersecurity solutions for protection against digital threats of the modern era...

What Australian Entrepreneurs Should Know About Streamlining Their Financial Processes

Running a small business in Australia demands much more than just delivering a great product or serv...

Supporting Joint Health in Young and Growing Horses

Anyone who has raised a foal through to a rising three-year-old knows how deceptively fast the gro...

Why Is My Switchboard Buzzing? What a Humming Breaker Is Telling You

Most people never hear their switchboard. It sits quietly in a cupboard, a hallway or a meter box ou...