Cabinet document reveals Turnbull Government under pressure to change industrial relations laws

Extract from ABC

By political reporter Dan Conifer and freedom of information editor Michael McKinnon

Updated about 4 hours ago

Photo: Scott Morrison was appointed to the Treasury in September after the leadership spill. (AAP: Sam Mooy, file photo)

Related Story: Review proposes cuts to Sunday penalties for hospitality, retail workers

The Turnbull Government is being pushed to change Australia's industrial relations system, a Cabinet-sensitive document obtained by the ABC has revealed.

The incoming brief for Treasurer Scott Morrison said increased workplace flexibility was "key", and endorsed a report that is primed to recommend cutting Sunday penalty rates across a range of industries.

Key points:

• Brief urges for increased workplace flexibility
• Calls for "reform now" to improve nation's productivity
• Labor labels Treasury recommendations troubling
• National economy establishing "broader base for future growth" Treasurer says

"Labour market flexibility remains key to the economy adapting to challenges and opportunities in the future," the powerful Treasury department argued.
"The Productivity Commission's Review of Workplace Relations represents a significant opportunity for labour market reform to help drive productivity in the economy," it said, referring to a report expected this month.
"[The review] is an opportunity to build the case for reforms to grow the economy."
The ABC's freedom of information investigation also found average incomes are not expected to recover for at least another 18 months — in what would be Australia's longest-ever period without per capita income growth.
"Our goal needs to be improvement in the country's productivity," it said.
"Reform now is important, as delay will only exacerbate the extent of change required in the years ahead."
The ABC's investigation has also revealed:

• Income per person (real per capita national income) will not recover to 2011-12 levels until 2017-18
• Treasury said "structural reform" in the multi-billion-dollar health and education sectors was worthwhile, and the Federation White Paper process presented an opportunity for change
• Treasury said budget repair was essential, and the Government 'could not wait for economic growth to fix the budget bottom line'
• The department said global uncertainty and the uneven transition after the mining boom remained risks for the economy

Labor concerned about penalty rates

Federal Labor said the Treasury's recommendations were very troubling.
"We are concerned that when the Government talks about flexibility, and that is Malcolm Turnbull and the Liberal Party, [they] are really talking about cutting penalty rates, lowering the minimum wage; effectively a race to the bottom," opposition workplace relations spokesman Brendan O'Connor said.
"Whether it's with WorkChoices or other IR reforms ... it's always about cutting penalty rates, cutting the minimum wage and making jobs less secure.
"Our concern is given the Liberal Party record, and the recent foray into the penalty rates debate by the new Prime Minister Malcolm Turnbull, that this notion of labour flexibility is one-way flexibility, which is effectively cutting conditions of employment for 11 million Australian workers."
In October, Mr Turnbull commented on the difference between Saturday and Sunday penalty rates, saying: "The only reason they're different, I assume, is history.
"I think over time you will see a move to a more flexible workplace."
The interim Productivity Commission report, released in August, recommended cutting Sunday penalty rates for sectors including hospitality and retail in line with Saturday pay, but said wages for emergency workers should not be affected.
"Australian society expects to be able to shop, go to a pharmacy, and eat at cafes and restaurants on weekends," Productivity Commission chairman Peter Harris said.

Australia in economic transition: Treasurer

When asked about the Treasury document, Mr Morrison said Australia was continuing to go through economic transition following the investment boom in the mining sector.
"The Australian economy is diversifying and establishing a broader base for future growth," Mr Morrison said.
"Australians understand the changes taking place in our economy and are looking to the Government to continue to pursue policies that support jobs and growth. This is what we are doing.
"The Turnbull Government is backing Australians with our policies — whether it's our efforts to make our tax system growth friendly, boost productivity through our innovation, competition and infrastructure initiatives or gain increased access to overseas markets though our trade agenda, we are taking action to support Australians who are working, saving and investing."

YouTube: Scott Morrison speaks to Radio National

Speaking on Radio National in October, Mr Morrison said the workplace system needed flexibility.
"What we want is more people, particularly young people, being employed," he said.
"We need flexibility in the system which means people with disabilities, people who have been long-term unemployed can get a go in the labour market.
"Now, I don't see why you wouldn't want to consider anything that wouldn't achieve those sorts of goals."
Mr Turnbull appointed Mr Morrison in September, relegating Joe Hockey to the backbench and sparking his retirement from politics and Saturday's North Sydney by-election.