The first few days of the campaign has been dominated by the opposition leader attempts to distance the Liberal/National Coalition from the WorkChoices legislation implemented by the Coalition Government prior to the 2007 election. From all of the analysis since that election, it seems that WorkChoices went too far with the electorate and was a major factor in the Coalitions defeat.

Under the new Labor Government, we have seen the introduction of new work laws (administered by Fair Work Australia) that remove workplace flexibility, by enshrining minimum standards and a set of industry awards (a one size pay and benefits template for a companies operating in a particular industry). Under the previous WorkChoices system, employers and employees were allowed to negotiate an agreement between themselves (although changes were later made to ensure there was a “No Disadvantage Test” determined by an independent umpire when new contracts were being negotiated). In both cases, there are exemptions for unfair dismissal claims for small businesses.

So in a nutshell, there is now very little difference between Labor and the Coalition industrial relations policy. This is a shame because, when analysing any industrial relations law I generally look to see if there are any government roadblocks that impede the free exchange and negotiation between employer and employee – provided there is no coercion, blackmail, physical violence or fraud by either party. I firmly believe that is every person’s right negotiate directly with their employee and negotiation the wage, hours, sick leave etc. It is one of the reasons that decided to go into business for myself – I have much more flexibility to negotiate almost every facet of our relationship. So it looks like Australia will have greater inflexibility in the workplace which will lead to lower productivity and higher than necessary unemployment.

So my “Liberation Engineer” rating of Industrial Relations polciy (0 being completely government controlled, 10 being completely free for individuals and employers to negotiate as they see fit):

Labor: 5/10

Coalition: 5/10

Australia goes to the polls on August 21. Over the last few months I have been loosely involved with the Liberal Democratic Party, in particular, the Victorian chapter. Be sure to check out their policies here. In my opinion, they are the most reasonable, pro-liberty party in Australia.

As the election campaign rolls on I will give my insights on the policies of the major parties by examining their impact on individual liberty.