'Truly' Measuring WorkChoices

Andrew Bolt reckons that “Easy fire truly does mean easier hire”

He is referring to the effect of the new industrial relations laws – particularly those which scrap the access to “unfair dismissal” for employees of small business. The theory is that if employers are more comfortable with terminating workers, they will be more comfortable with hiring long term unemployed, since if it doesn’t work out, they can just terminate them without the worry of unfair dismissal applications.

The supposed evidence of this theory is Australian Bureau of Statistics which point to a reduction in unemployment rates to below 5% – the lowest in thirty years.

However, the link between unemployment figures and the amount of terminations is indirect and speculative.

Reducing unemployment involves a lot more than providing something to (possibly) encourage employers to employ the long term unemployed. It also involves social and economic policy issues including mismatch (location of jobs to where unemployed can afford to live), education and qualifications, age, other forms of discrimination, etc. Unemployment statistics also need to be used very carefully. Yes, it's great that unemployment is below 5%, but – it should be kept in mind that these figures don't account for underemployment or people not in the labour market.

However, generally speaking, I agree that the laws have many merits. Time will tell the true social impact of the laws, but I think now that they’re in, we really need to give the new industrial relations system a good go.

I can understand Australians having concerns - concerns are quite natural and perfectly expected because these laws are changing the very foundations of industrial relations. They challenge many of the basic concepts in social thought, which people are just coming to terms with understanding and accepting. These are the growing pains of any new system.

It is still too early to judge how the new system will “truly” affect Australians.