Strike action at big employers could scare SMEs into not bargaining hard enough: Expert

Industrial battles engulfing logistics giant Patricks, airline Qantas and construction group Lend Lease might reflect greater union confidence under Labor’s Fair Work Act, an expert says.

Industrial relations lawyer and adviser Peter Vitale says recent statements by the Transport Workers Union and the Maritime Union of Australia signal that “some of the pessimism that was being expressed about the Fair Work Act might yet prove to be justified.”

Industrial conflict has also afflicted industrial coating business PPG, which has seen its Melbourne plant shut down by strike action.

Vitale argues the rising incidences of strike action at bigger companies may have an indirect impact on SMEs. He says they are more likely to not rock the boat on pay or conditions because they have more to lose from industrial action.

“Smaller employers don’t seek to bargain as hard as they have in the past because it’s easier for their business to be disrupted in a significant way,” Vitale tells SmartCompany.

“Smaller employers are not really prepared to have a battle even at the first stage.”

Vitale says there’s “no question that Fair Work has greatly empowered unions to disrupt the activity of employers and take industrial action.”

His comments come as MUA national secretary Paddy Crumlin flagged an industrial action campaign this week if an agreement is not reached with Patrick Stevedores.

“In frustration at the obfuscation of this company not being able to put any meaningful position on the table after eight or nine months, the guys have taken some limited action,” Crumlin was quoted saying this morning.

Patrick has warned industrial actions at its terminals would affect 33 ships and 35,000 containers, the ABC reports.

Airline Qantas also raised the ire of unions by sending managers to the US for ground operations training, to protect itself against a strike by ground staff.

Vitale says dissatisfaction with the laws is greater-than-expected in the business community, and the Coalition might be tempted to renege on its promise to not try to tamper with industrial relations.

He says while Qantas and Patrick are “obvious first candidates” for industrial disputes given their “colourful industrial histories”, it is noteworthy that Patrick has had a peaceful workplace for about 12 years, since its infamous dispute with wharfies under the early days of the Howard Government.

Likewise, the incidence of pre-Christmas and pre-Easter industrial action at Qantas has been relatively low in recent years, he says.