Labor, coalition claim jobs high ground

The coalition and Labor will fight over jobs as Tony Abbott unveiled his workplace relations policy. Source: AAP

LABOR and the coalition are at loggerheads over their workplace policies, after the opposition unveiled its proposals to bolster business.

Opposition Leader Tony Abbott said changes to the Fair Work Act were needed to help create one million jobs over the next five years, lift real wages and make businesses more competitive.

But Employment Minister Bill Shorten said the creation of 961,000 jobs since Labor came to power in 2007 showed its policies were right.

He pointed to new data showing the jobless rate fell to 5.5 per cent in April as 50,100 new jobs were created.

"The economy and jobs are working with the current laws," he told reporters in Brisbane.

While Mr Abbott said an incoming coalition government wouldn't return to the controversial Work Choices laws of the Howard government, it would make "sensible fair-minded changes".

"We want to protect workers' pay and conditions. We also want to maximise their opportunities to get good jobs," he told reporters in Sydney on Thursday.

The coalition intends to keep the Fair Work Act in place and won't touch unfair dismissal laws and penalty rates.

It also plans to set up two anti-corruption watchdogs and promote the use of the existing individual flexibility arrangements (IFAs).

Workers opting for IFAs would be locked into them for 90 days instead of 28 days, and businesses would be able to use them even if enterprise bargaining agreements existed.

Union right-of-entry laws would be tightened and the Fair Work Act changed to enshrine "talking first and striking later" when it came to industrial action.

The Productivity Commission would be asked to review workplace laws, but any further changes would be taken to the 2016 election, Mr Abbott said.

ACTU president Ged Kearney said this would mean a return to Work Choices and contracts similar to the controversial Australian Workplace Agreements under former prime minister John Howard.

"We know when people were on AWAs they lost wages, they lost conditions, they lost any bargaining power, and ultimately they lost respect at work," she said.

Mr Shorten said Mr Abbott's policy was short on detail and the focus on individual contracts was disturbing.

"Tony Abbott's extreme workplace relations policies should send a shiver up the spine of every Australian worker," Mr Shorten said.

Australian Chamber of Commerce and Industry chief Peter Anderson said the policy would be fairer for employers, but was "too cautious".

"It won't give the labour market or small business the immediate boost of confidence that it sorely needs," he told reporters in Canberra.

Meanwhile, one of the nation's biggest providers of jobs and services - local government - could be recognised in the Constitution if a referendum on election day, September 14, is successful.

Prime Minister Julia Gillard expects the referendum - which has been tried twice before and failed - will succeed with bipartisan support.

Independent MP Tony Windsor, who with fellow crossbencher Rob Oakeshott asked for the referendum when they sealed a deal for Labor to form a minority government, said it would shore up financial security for local councils.

But the Queensland and NSW premiers don't support it, fearing it will fundamentally change the relationship between state governments and councils.

Legislation for the referendum will be presented to federal parliament next week.

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