Once more unto the IR breach dear friends!

Is the new PM showing some ticker on IR? A few thoughts to help, Hutt’s demolition of some myths that sustain the illegal and productivity-destroying activities of rogue trade unions. He also wrote somewhere that democracy might not survive unless there are effective curbs on organised violence by special interests.

The reason that wages are flatlining is lack of increases in productivity across the board. Productivity does not exist in the ALP lexicon since the Hawke Keating reforms.

The eight myths.

1. The industrial revolution and the factory system resulted in a period of brutal exploitation of the labouring masses.

2. The workers were frustrated and oppressed by the Combination Acts which were designed to favour the employers and to prevent the workers from forming associations.

3. Labour has an inherent disadvantage in the contest with capital unless the state intervenes to provide assistance, especially by protecting the right to engage in collective bargaining and strike activity.

4. Labour had to wage a bitter struggle to achieve improved pay and conditions.

5. Collective bargaining by the trade unions is a manifestation of the solidarity of the working class to resist exploitation and get a fair go.

6. Wage rates are “indeterminate” so it is good for unions to bargain as hard as they can to get the best possible pay and conditions.

7. Strike activity with the use of violence against non-conforming workers is morally legitimate to adjust for the imbalance of power between labour and capital.

8. Collective bargaining, with strikes or the threat of strikes, is not only morally legitimate but it was also necessary to improve the share of the common wealth between labour and capital.

Since Shakespeare is disappearing from the English syllabus it will soon be necessary to footnote once-famous quotes.

This entry was posted in Market Economy, Rafe. Bookmark the permalink.

13 Responses to Once more unto the IR breach dear friends!

  1. Tel

    1. The industrial revolution and the factory system resulted in a period of brutal exploitation of the labouring masses.

    People were driven into the cities by the Inclosure Acts (approx 1700 AD), which also drove some people into poverty. This provided the factory owners with plenty of workers who desperately needed a job. It wasn’t the factory owners who put them into this condition, it was the factory owners who rescued them from starvation.

    https://en.wikipedia.org/wiki/Inclosure_Acts

    The old Medieval style of serf farming was built around each family running a small plot, and a deep agreement between the local Lord and the peasant serfs. The Lord agrees to protect the serfs and the serf agrees to work and give a share of the harvest to the Lord. Things like sharecropping are very similar, and today we pay about the same percent in tax as the sharecropper paid to the landowner so things haven’t changed a whole lot. Call it a protection racket, call it civilization… comes to the same thing.

    When they shifted to larger plots of land and more efficient farming, the serfs got kicked off their land, food prices went down overall but the profits ended up more concentrated and fewer people were needed to work the land. Of course this is a classic tech-shock… new technology displaces the old way of doing things and as a consequence people’s lives are disrupted. Some win out of the change, and others lose. The next big agricultural tech-shock came around 1900 AD with Otto’s engines, and mass produced nitrate fertilizer, and again the same thing happened… fewer farm workers needed, consolidation of family farms, and many people driven to live in the cities.

  2. BoyfromTottenham

    I agree Tel, and would add that the various British machinery inventions (reliable steam engines, wool and cotton working machines, lathes and other metalworking machines, and even standardised screw threads) and the huge canal building activity of the late 1700s to mid 1800s created masses of jobs in the UK midlands, and provided year-round incomes. Because of this, by 1900 Britain was considered to be the wealthiest country in the world. How things change.

  3. DaveR

    Turnbull shelved all the recommendations of the Royal Commission into Unions because Abbott had commissioned it. He basically never referred to it again. He therefore threw away a major opportunity for reform, and for dealing with the lawless union elements which have been prevalent ever since. What a disaster for the nation. Morrison looks like he is deliberately re-setting the agenda on IR.

  4. Roger

    Is the new PM showing some ticker on IR?

    We’ll see.

    This is the bloke who brought a lump of coal into the parliament but now can’t bring himself to even say the word.

  5. H B Bear

    Once IR was the only difference between the Lieborals and the Liars. Then The Father of Middle Class Welfare introduced Workchoices with no political mandate and killed the Lieborals for a decade.

    SloMo and his merry band of Wets don’t have the stomach or the personnel for this fight.

  6. old bloke

    Is the new PM showing some ticker on IR?

    I very much doubt it. If the new PM doesn’t have the ticker to address the issues which most affect the voters (energy costs and over-crowded cities), he won’t have the ticker to introduce Work Choices Mk. II.

  7. Infidel Tiger

    If they want to lose the the next election by a record margin they should further attack workers rights.

    It’s bad enough they went after penalty rates.

    Give the working class a pay cut and the most expensive electricity on earth.

  8. Brian

    Just a note Rafe to say thanks.
    Your essay and the included links are a fantastic read.

  9. Dr Fred Lenin

    Rafe. You are very informative on many subjects ,well written and researched,I enjoy learning many things from your work. Keep it up .

  10. Roger

    If they want to lose the the next election by a record margin they should further attack workers rights.It’s bad enough they went after penalty rates. Give the working class a pay cut and the most expensive electricity on earth.

    If they introduced some sensible reforms we could see productivity increases that would lead to higher wages for workers in the private sector. Trump has been rolling back Obama’s legacy in this area and it’s not hurting him or workers, except labor lawyers!

  11. EvilElvis

    ‘Workers’ are battling, vote for mandated wage increases, whine when prices of everyday items goes up and hours are cut, ‘workers’ are battling, vote for mandated wage increases, whine…

    What a great country.

  12. Jonesy

    We have a supply contract with a major multinational. Good rates except for one thing….if the major multinational doesnt want to sell your product competitively…they get the benefit of our volume rate and huge margin…no volume, no rate, we get squeezed. But thats business. We cultivate other competitors against the multinational and get our volumes up that way. Funny enough, multinational paid big money for the leasing of the parent business and proceeds to strangle it. They will not take advice on how to run the business. It doesnt take a union to stuff a good business.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.