Award simplification

The debates over award modernisation are going to be long and protracted. It is inevitable that there will be many losers from award simplification in the short term (as well as many winners, who will be much less vocal). However, in the long run there are widespread benefits from having a system of simpler and nationally consistent awards.

So why is the Rudd Government pushing ahead with award modernisation in a time of economic uncertainty and rising unemployment? Arguably, the Government needs to be a lot tougher and decisive in making economic decisions and standing up to vested interests, but surely it could wait until the recovery is a bit firmer and confidence has fully recovered.

The best strategy would involve phasing in the new awards over time. The Government should announce a (fixed) future date for full implementation—say, 1 July 2010—to provide a period for workers and their employers to adjust.