NATIONAL PRESS CLUB ADDRESS 6 October 2010 A vision for the Australian union movement Speech to National Press Club, by Ged Kearney, ACTU President Check against delivery I would like to thank the National Press Club for inviting me to speak today in what is my first speech to the Press Club as ACTU President. I acknowledge that today we stand on the traditional lands of the Ngunnawal and Ngambri people and pay my respects to their elders, past and present. It is an immense honour to follow in the footsteps of former Presidents like Bob Hawke, Simon Crean, Martin Ferguson, Jennie George and my immediate predecessor Sharan Burrow. All these leaders faced challenges that were shaped by their times, and I acknowledge their contributions to trade unionism and to making Australia a better place. I also would like to acknowledge Jeff Lawrence, ACTU Secretary and colleague. *** I have the honour of becoming President at a new and exciting stage in Australia’s political history. A minority government opens, not just the possibility of new ideas inside Parliament, but in the wider community as well. But regardless of the novelty of the current political environment the long term task of the union movement and my role as part of its leadership is to: • help build our membership; • improve our capacity to campaign; and • broaden our agenda. 1 Over its history, the Australian union movement has always stood for fairness and equality, and been at the forefront of progressive workplace, economic and social change. Take the instrumental role of unions in facilitating mass migration after 1945 or in re- establishing Medicare in 1983. I’m sure it’s frustrating for our critics, but we aren’t fading away – in fact the reverse is true. In 2009 our membership grew for the second year in row and overall union density increased for the first time in 20 years - showing unions are on the right path. So this is a great time to be working in a movement that speaks and acts directly for almost two million Australians and their families. We have over 120,000 volunteer workplace representatives and half of all Australians work for an employer where there is a union presence. Through our work, millions more Australians are better off because their workplace standards are set through collective bargaining and industrial awards. And we are a movement that is prepared to advocate for fundamental values in a way that no other organisation can. *** I come to this job with more than 20 years experience in nursing. I learned my profession in a private hospital in East Melbourne. I then worked at Melbourne’s Austin Hospital – first as a nurse on the wards and then as an educator and manager preparing the next generation of nurses. And finally as a union official, representing the industrial and political interests of my nursing colleagues. Many people will tell you that nursing is more than a profession; indeed it is a privilege. As a nurse you see people at their most vulnerable, but at a time when the strength of human nature invariably shines through. As you nurse people back to health, you can feel their energy, their enthusiasm, their determination to make the most of the chance they have been given. *** Within the union movement, there is a similar sense of possibility now that we have, for the moment at least, won the battle against WorkChoices. I think politicians have now recognised what all fair-minded people knew: That radical labour market deregulation that puts absolute power in the hands of the employer is not the Australian way. And so it seems incredible that just yesterday I read on the front page of a national newspaper that elements of the coalition are agitating for return to Workchoices. 2 The Fair Work Act has been a great step forward for fairness and balance in the workplaces of this country. Of course, the union movement will continue to press for Australia to catch up to the rest of the world in respect to rights at work. We continue to fail to comply with International Labour Organisation Conventions – conventions to which we as a country are a party. For example, workers in this country do not have the right to: • Bargain at the level they choose – be that sector, industry or economy; or • Take legal industrial action in respect to general industrial, social and economic issues. This is just to name two key areas of concern. The Fair Work Act itself is an unfinished canvas for the union movement as we have canvassed on many occasions. But at least we now have the space and opportunity to rebuild the Australian workplace and develop a vision of society that meets the needs of the modern workforce. *** During the election campaign I had the chance to hear from many working Australians. They are struggling financially to makes ends meet. They are stretched between family responsibilities and economic commitments. For many there is no guarantee of the basic security and entitlements that many of us take for granted. These struggles are not imaginary. The wages share of national income is now at its lowest point since December 1964. Employment is now more precarious than ever. Despite this, there is sense of purpose and commitment to their jobs that I sometimes think neither our politicians nor our media truly appreciate. But always, there is a desire for something better. There is a light on the hill that burns in the labour movement and it burns in the workplaces of Australia. Workers can’t be fooled. Without knowing the figures they sense what the statistics show - that productivity is rising faster than real wages and that real unit labour costs are at their lowest on record while executive salaries reach dizzying new heights. Workers tell me that they want our economy to start working for them – rather than them simply working for the economy. They want and deserve a fair share. 3 In a time for new ideas in politics – I want my time as President of the ACTU to be committed to pursuing these aspirations and leading debate on a larger policy agenda – industrial, economic, social. Unfortunately the space for rational policy debate in this country is narrower than ever. The debate over the mining tax has been an example of narrow sectional interests and the power of advertising over-riding genuine debate in the national interest As Ross Garnaut so eloquently stated in the heat of the mining tax battle: It is critically important to our future that we are able to discuss hard policy proposals on their merits, so that an informed perception of the public interest can emerge and eventually win broadly based support. These debates affect the health, and happiness, of millions of Australian workers and their families. The ACTU has an obligation to contribute to those debates on behalf of our members. Today, I want to outline three policy areas where the union movement has a special interest and can play a central role in developing a better and fairer nation. *** The first is job security. Over the past decade one of the biggest trends in the Australian workplace has been the move away from full-time and secure jobs, to what is called precarious employment. Indeed, for the first time in Australia’s history, fewer than 50 per cent of the workforce is classified as being in permanent full-time employment. Full-time work was once the basis of our economic security, and also of all our social structures. But that is no longer the case. During the federal election campaign, I met Fiona at a call centre that services one of the big banks. She told me: “Ged, I love my working life here, the people are nice, I like the company. But they won’t give me a permanent job.” Her life was on hold: without permanent job security no bank will lend her the money for a mortgage, she is unable to do many of the things she wants to; every six months she worries about whether or not her contract will be renewed. This is the reality for so many Australian workers. This week, we have released a report that highlights the significant changes workers face both at work and outside work. In Australia, over the past two decades we have seen a significant growth in total wealth, with GDP per capita increasing by 42%. 4 Much of this growth has resulted from economic, financial and social risks being transferred from employers to workers, and from governments to households. This is played out in the growth of precarious jobs and in underemployment – meaning more people face the same difficulties as Fiona. Not to mention the added difficulty that casual and precarious workers have in bargaining for fair wages or organising their family needs. Of course, for some people casual and contract work is the right work solution. But, for most, taking up the risks of insecure employment means job flexibility that does not work in their favour. This is a particular concern for women workers, who are more likely to be in casual work than men. The lack of secure, decent jobs has a concrete effect on their careers and their incomes — with the gender pay gap continuing to widen. For more than a decade the idea of regulating the labour market has been regarded as an economic sin. But is it? Would national regulation that required companies to offer casual workers permanent jobs after six months be so restrictive to business? Would the social benefits of more secure jobs outweigh any marginal impact on the bottom line? Can we find ways to reward employers that do the right thing - for instance, we could take this into account when government contracts are awarded? I believe we can.