Master Builders Australia says productivity report highlights need for better bargaining laws

After the Productivity Commission released its interim report, Master Builders Australia issued a statement highlighting its desire for bargaining laws to focus on productivity.

The 5 Year Productivity Inquiry: From learning to growth report was released on 4 October. CEO of Master Builders Australia, Denita Wawn, commented “This report highlights the need for bargaining laws to be focused on two crucial elements: individual enterprises and productivity.”

“It shows that better wages will only be driven by bargaining which is enterprise-based and squarely aimed at achieving genuine improvements in productivity to the benefit of everyone at the workplace, and these should be the sole focus of any changes to the current laws,” said Ms Wawn.

She notes that use of excessive power and unlawful action to gain an upper hand in bargaining has negatively affected the construction industry for decades.

Ms Wawn said: “The government’s decision to abolish the [Australian Building and Construction Commission] (ABCC) will only make this worse.”

“There is now doubt that proposals such as a return to industry-wide bargaining risk future wage growth and shows a ‘one size fits all’ approach can reduce flexibility and encourage anti-competitive conduct,” explained Ms Wawn.

“Expanding multi-employer bargaining laws is nothing more than a recipe for damaging strikes and, while there is no doubt our workplace bargaining laws need to improve, government must resist changes that will take our workplaces and economy backwards.”

The 5 Year Productivity Inquiry: From learning to growth report also focused on the importance of ‘human capital’ in the current work climate. Skills development, education, training, and wellbeing were all discussed with the view that attention to these areas can increase productivity.

Productivity coach Donna McGeorge spoke to HR Leader about the report: “Many employees are now aware of options around new ways of working and any employer that is not considering making changes is at risk of losing their best and brightest.”

“When it comes to employee engagement, ease (or not) of getting the basics of their work done is something that needs to be top of mind for any organisation. Productivity doesn’t have to mean working long hours or increased discretionary effort but being able to do the fundamentals consistently,” she continued.

“I’m pleased that productivity is being singled out as a lever that organisations can pull provided that it goes both ways. It’s not just about finding ways for people to continue to go above and beyond which benefits employers, but also making sure balance, mental wellbeing and job satisfaction are addressed for employees.”

Jack Campbell

Jack is the editor at HR Leader.