JACINTA TYNAN:
Well the clock is ticking for the Government as it finalises its industrial relations Transition Bill, which it’s promised will be one of the first pieces of legislation tabled in Parliament when it resumes next month. Joining us now from Canberra, Sky News political reporter Ashleigh Gillon. Well Ashleigh, the Workplace Relations Minister is still putting the final touches on what must be a very complex piece of legislation?
ASHLEIGH GILLON:
Good morning Jacinta. Yes, that Transition Bill will be on the agenda today for a meeting between Julia Gillard and industry leaders and next week, they will go over it again when the Workplace Relations Minister meets with her State counterparts. Julia Gillard does join me on the line now. Ms Gillard, in light of the latest inflation figures out yesterday, how important is it when you are looking at this Transition Bill to really focus on avoiding any potential wages breakout?
JULIA GILLARD:
We obviously want to see an environment of wage restraint. We’ve made sure, in designing our new industrial relations system that it is focused on building productivity. One of the great problems for this nation is that we haven’t had increasing productivity; we’ve had poor productivity performances. We have got to lift productivity and that will be the focus of what we do in industrial relations.
And of course we are also focused on delivering our Education Revolution. The Reserve Bank has warned time after time that skills shortages were a restraint on the capacity of the economy to grow. We are going to make sure that we are investing in education and skills; that we are doing what we can to address those skills shortages and that for the long term we are making sure we have got a world class education system.
ASHLEIGH GILLON:
But in the context of these new lows in unemployment and with such a tight labour market, there is no guarantee is there, that your new workplace reality won’t put upward pressure on wages?
JULIA GILLARD:
We can certainly say that our industrial relations system is about productivity. What we are saying to everyone; to employers, to trade unions, to everyone involved, is that wage increases have to be about productivity gains. If you work harder and you work smarter, then there are gains to be shared and that is not inflationary. That is the focus of our industrial relations system. It’s also a system that is based on bargaining at an enterprise level. So there is no way that the wage outcome in one business can affect wages in other businesses or across the board. We’ve specifically designed an industrial relations system that is focused on productivity and making sure that there is not wage inflation.
ASHLEIGH GILLON:
So as the unions embark on their new rounds of enterprise bargaining, you will be specifically targeting them and calling on them to show restraint when it comes to pushing for those higher wages?
JULIA GILLARD:
Wayne Swan has urged restraint and I join him in that call. It is important that people recognise that we’ve inherited from the previous government a high inflation environment. Inflation is bad for working families and it is incumbent upon all of us to do what we can; to show restraint in this high inflation environment. The Government is obviously going to lead by example with a prudent budget and we are calling on employers and employees and trade unions to also show restraint.
But can I say this, on industrial relations, the bill we will be bringing to the Parliament in the first week of Parliament is our Transition Bill. What it will do is it will end the ability of anyone to make an Australian Workplace Agreement and we know those agreements have stripped away basic conditions from some of the lowest paid and most at risk workers in this society. Later, we will ask the Parliament to consider our substantial industrial relations bill. But the bill that will be in the Parliament in the first week is actually quite a simple bill. We will be asking the Parliament: do people support there being agreements that can strip away basic conditions? Now the Labor Party says no. The Australian people in voting for our policy have said no; that they want to see fairness in the industrial relations system. We will be asking the Parliament to also ensure that there is that basic fairness.
ASHLEIGH GILLON:
There are reports today of a new unit within the Department of workplace relations. What is the aim of that new division?
JULIA GILLARD:
We are working in a consultative way on everything we do in industrial relations. It is a very stark contrast to the way the former government engaged in industrial relations. In preparing the Transition Bill, we’ve been meeting with employers, with unions; I’ve convened on more than one occasion the National Workplace Relations Consultative Council and indeed it is meeting again today. We are also working with our State and Territory colleagues. We don’t want to see a continuation of the blame game and war that happened between the Federal government and the State and Territory governments under the last government. We want to see cooperation in industrial relations and we particularly want to deliver a uniform national system for the private sector; so people who are working in business don’t get tied up in unnecessary red tape, wondering what industrial relations laws apply to them.
ASHLEIGH GILLON:
When you do meet with your State counterparts next week, how do you plan to combat some States reluctance to do a referral of powers to the Commonwealth?
JULIA GILLARD:
We’ve said to our State and Territory colleagues that we want to work with them on achieving a national system for the private sector. That can be achieved by a referral of powers; it can be achieved by harmonising laws. But we want to make sure that for people in the private sector they aren’t ever left wondering: is it State law that applies to me or Federal law that applies to me? That they know what law applies and that they are able to work within it. Its part of making sure that our industrial relations system is as simple as possible, as well as fair.
ASHLEIGH GILLON:
On another matter, this Australia Day will likely be Michael Jeffrey’s last as Governor General. What candidates do you have in mind to replace him and how important do you think it is that a woman is considered?
JULIA GILLARD:
This is a matter for the Prime Minister and he will be dealing with it. Obviously the Prime Minister will be making a selection he considers to be based on merit.
ASHLEIGH GILLON:
But would you like to see a woman in that role?
JULIA GILLARD:
This is a matter for the Prime Minster to deal with and I am happy for him to deal with it.
ASHLEIGH GILLON:
On a sadder note just before you go, of course today tributes are continuing to flow for Heath Ledger. What was your reaction to the death of the Aussie actor?
JULIA GILLARD:
I heard this on the news yesterday morning and was really very shocked. Obviously it’s tragic to see such a young man and such a talented man die so unexpectedly. And I have heard his family speaking on the media in the last 24 hours; it must just be a devastating time for all of them. Obviously Australians would be thinking of them today and I think many would be reflecting on Heath Ledger’s achievements in what was a far too short life.
ASHLEIGH GILLON:
Julia Gillard, thank you for joining us on Sky News today.
JULIA GILLARD: