An edited version of the address by AMWU National Secretary, Dave Oliver, to the national delegates forums held in March, 2011.
Intro
Good morning. It’s good to be back here talking to you again after a pretty dramatic year.
Firstly I’d like to thank you for your efforts as AMWU delegates. Our union is proud of our tradition of putting workplace delegates in the driving seat of representing our members on the job and growing our union, and I know that there is no-one in our union more committed than the 5000 people around the country who take on the responsibility that you do.
Election
Secondly, I want to acknowledge that the state and national leadership of our union have been re-elected in an uncontested ballot. I am very pleased to be leading such a united union and to be able to focus on the issues that affect our members. It is a tribute to the leadership – which includes you as delegates – that we have achieved this unity of purpose, and I personally thank you for the endorsement of the direction of the union for another four years.
Summary of last 12 months
As I said, it has been an interesting past 12 months.
Last year we were only just emerging from the Global Financial Crisis, but thanks to stimulus packages and cooperation at an industry level, we had avoided recession and many of our major employers are getting back on track. I hope that is the case for many of your workplaces today.
This time last year we were worried about the possibility of Tony Abbott becoming Prime Minister.
Kevin Rudd was our Prime Minister when we last met.
12 months ago we thought we would soon have an emissions trading scheme, and nobody had heard of a Resource Super Profits Tax.
A year is a long time and not always predictable.
Outline of speech
Today I will outline what I see as our challenges for this year, and there are 4 key themes I want to discuss.
1. Jobs
The first item is jobs.
I will talk about climate change and jobs.
Free trade and jobs.
Local content and jobs.
2. Bargaining
Secondly, this year will be a major bargaining round
We need to talk about our priorities including wages, but also superannuation, paid parental leave, skills classifications and apprenticeships.
3. Achievements in 2010 and challenge to grow
Thirdly, we need to look at the achievements of the past 12 months.
We had some big wins in 2010.
We secured the protection of entitlements after a long campaign.
We saw a paid parental leave scheme begin on January 1 this year.
And out of the debate on the mining tax, we saw the government set in place reforms to lift superannuation to at least 12% by 2020.
We need to celebrate those victories and focus our energy on using them to grow the union this year.
4. National Campaign to promote Manufacturing as Australia’s Future
We have launched a national campaign to promote manufacturing.
The ‘Manufacturing: Australia’s Future’ campaign will promote a positive image of our industries, and point out that manufacturing is the bedrock of our economy.
We want the government to invest significantly in manufacturing over the next decade, and we are going to make a lot of noise to deliver on our objectives.
The TV, radio and newspaper ads we launched are just the start.
Skills Register
We have also launched a website which will help us take on the abuse of 457 visas and challenge employer myths about skills shortages.
Skillsregister.com.au will allow skilled tradespeople, technicians and young people seeking apprenticeships, to register online.
We will use that database to combat every employer who says they can’t find a skilled worker, or can’t find a young person willing to take on an apprenticeship.
We’ve been calling on successive federal government’s to provide proper market testing to stop the exploitation of temporary guest workers for years but today we are taking action ourselves.
1. Jobs
Climate Change
Climate change is this hot topic of the moment.
We have to see that dealing with climate change is an opportunity for manufacturing, not a threat.
This has been our clear position for years. We have been talking up investment in clean technology, clean energy and innovation in low-carbon manufacturing specifically since at least 2007, but for many years before that too.
The global clean technology sector is now worth $6 trillion dollars and Australia must win its share of that work.
The Prime Minister says the price on carbon is a reform equal to the floating of the dollar and opening of Australia’s markets in the 1980s, and I agree.
But the Prime Minister needs to remember that during the 1980s we also had the Button Industry plans. Plans for the steel industry, the auto industry, the ship building industry.
We need to put a price on carbon pollution but we can’t do it without plans for our industries at the same time.
I want to say that this idea put about by climate skeptics, that we are leading the world on climate change action is wrong.
Many countries are way ahead of us and we risk being left behind if we continue to do nothing.
In January, the US President Barack Obama, announced a multi-billion dollar plan for low-carbon industries. He called it his ‘Sputnik moment’, and compared this challenge to the Kennedy-era when America announced it would send a man to the moon. The space race drove intense research and development and technological change that made America a global leader for the next 50 years.
In Australia we have had successful programs that were creating jobs, such as the Green Car Innovation Fund – which delivered the Hybrid Camry to Victoria, and the Holden Cruze to South Australia.
We were disappointed when the government sacrificed the program on the altar of a balanced budget in the aftermath of the Queensland floods. This decision was done without consultation.
It was the wrong call and we have taken public action against the government since then.
The’ Manufacturing: Australia’s Future’ campaign is a direct response to this decision and to warn the government against any further cuts to industry programs in the federal budget this year.
We must make the most noise for investment in the sectors that will provide the jobs of the future.
Already big business such as Onesteel and Rio Tinto are out there posturing for compensation
It doesn’t need to be an either/or proposition, but we must have a plan to create new jobs, not just protect old ones.
The other noise being generated about climate change is from Tony Abbott – who is continuing his strategy of saying ‘No’ to everything.
He has no vision and is not interested in the science or in telling the truth.
The only job that Tony Abbott is interested in is his own.
4 years ago he supported John Howard’s emissions trading scheme.
2 years ago he told Malcolm Turnbull that the Liberal Party had to do a deal and support the Carbon Pollution Reduction Scheme.
Then he saw the political winds change, knocked Turnbull off and said climate change was ‘crap’.
He campaigned on debt reduction but after the election, he was prepared to hand out billions of dollars to the independents.
As Tony Windsor has said, he was literally begging to become Prime Minister.
Tony Abbott is an opportunist, not a leader.
The path he would take Australia down would leave us behind the rest of the world.
We have to win this debate.
It is inevitable that we will have a lower-carbon economy.
Our only choice is whether we take advantage of the opportunities for manufacturing or stick our heads in the sand.
Free Trade
Nonetheless, the way the rest of the world acts on climate change will affect us. We need to ensure that our government protects us from free-trade agreements, which could undermine our ability to create Australian jobs in the clean-tech sector.
Our union has long been skeptical about so-called ‘free trade’.
We know that FTAs of the past have made false promises and let down our industries. The productivity commission report last year showed that the US Free Trade Agreement we campaigned against in 2004 has been a dud.
While other countries talk about free trade, Australia has been among the foolish few to embrace it.
When Australia signed an FTA with Thailand it was apparently going to lead the Ford Territory being exported from Victoria to Thailand, but before the ink had dried on the deal the Thai government replaced the tariff cuts with a ‘commercial vehicles’ tax and nothing changed.
In Korea, 90% of the cars on Korean roads are made in Korea. An FTA is not going to change that.
We have long argued against countries undermining our standard of living with low wages. We are against countries who produce more cheaply because they do not provide safe workplaces for their employees. Human rights, democracy and the right to be organised at work are not free and we cannot agree to trade laws which give those countries permission to undercut us on those values.
The same applies to pollution and carbon emissions.
If we are going to put a price on carbon pollution, we need to ensure that we protect our jobs from being undercut by countries that do not. Border adjustment programs – or ‘green tariffs’ – are something Australia has to consider.
Local content and Procurement
We will definitely oppose agreements which take away our right to favour our own industries. The ‘Manufacturing: Australia’s Future’ campaign will argue for more local investment and programs to grow jobs in Australia. It will build on the work of the Build them Here, Manufacturing Matters and WA Jobs for WA Resources campaigns.
With major contracts coming up – such as the next generation of submarines – we cannot allow the situation we have seen in WA – where massive resource projects are using as little as 5% Australian local content.
The campaigning we have already done has made some inroads.
The demonstrations we held in NSW over the work on Navy ships that was sent offshore to Singapore last September has resulted in a Defence Industry Innovation Council being set up with the union represented. That council will give us a place to put the case for local contractors before decisions are made.
Dumping
Lastly, we actually need to point out that often free traders don’t even follow their own rules when it doesn’t suit them. The issue of dumping – where goods are sold at below their value in order to put a competitor out of business – is illegal, but has been occurring and is costing us jobs.
China has been caught dumping in several of our industries, and yet even the companies affected, like Bradken Rail in QLD, can’t speak out because of the relationship they have with China on other more valuable projects.
We need the government to take stronger action here and we are holding a roundtable in April with the CFMEU and the AWU, politicians and company heads to discuss a stronger regime against dumping.
Skills and apprenticeships
The most galling aspect of free trade madness is probably the increasing use of 457 visa workers to replace local skilled workers. Free trade has exported thousands of jobs overseas, and now they want to import labour to work in the jobs that are left here.
Using 457 visas gives employers the option not to invest in training and not employ apprentices.
But employers can’t complain about the lack of skilled workers on the one hand, and then refuse to invest in training on the other.
Less than 50% of apprentices are completing their apprenticeship now and this will cost our industries dearly. It is exacerbating the skills shortage.
That’s why your union has asked the federal government to introduce an employer contribution scheme, which would require employers to contribute to a central training fund.
Many employers are actually exaggerating the skill shortage so that they can access these visa workers.
It is very well documented why – they don’t just save money on training, they pay temporary guest workers less than the market rate and often exploit them because the workers don’t know their rights in Australia.
Gina Rinehart – the billionaire miner – last week pretty much said she was so desperate for workers that we should just ship them in from overseas.
This is lazy management, no comprehensive training plans and no market testing.
That’s why we launched our national skills register.
There is nothing more important for the future of our industries than ensuring we are providing young people with opportunities to take up trades.
Summary
So there’s a lot of issues we have to confront – climate change, trade, local content, skills – but our union is thinking about all of them from the point of jobs.
Good jobs for us today.
Good jobs for our kids tomorrow.
2. Bargaining
The second theme for us to discuss is the bargaining that many of you will be leading in your workplaces in the next 12 months.
I know you will be discussing this in more detail, but it’s important to remember that bargaining is our best opportunity to grow, and that bargaining always has to secure more than just wages or conditions if we are after long-term job security.
There is bargaining material which has been mailed to delegates with agreements coming up for negotiation, and it is also available here today.
It is important that we are aware of the overall significance of each issue and are able to explain and discuss each issue with members and potential members through the negotiating process.
Our members will look to us for leadership, and we must be able to articulate our direction and overall strategy.
Regulation over casuals and contractors
Employers will use casuals and contractors to undermine the wages and security of permanent employees. They also deny these workers security and weaken our ability to organise at the workplace.
We need to ensure that there is consultation and agreement before casuals or contractors are engaged and that all non-permanent employees receive equal rates to permanent employees, and include clauses which give casual workers rights to convert to permanent employment after 6 months.
Superannuation
9% superannuation is not going to be enough for a decent and dignified retirement in the future.
While the government is planning to move to 12% by 2020, AMWU members will benefit from negotiating rises earlier.
The union movement has a goal of 15% and we need to keep pushing for this level.
We need to oppose any attempts by employers to offset the superannuation increases against wage outcomes.
Apprentices and skills classification
It is vital for our industries future for young people to be brought in and given opportunities.
It is crucial that we push employers into a greater commitment to engage more apprentices , training and up skilling their existing workforce. We must ensure that members have access to assessment and re-classification.
The union-run MISTAS trainers are the preferred provider of the union and do deliver the best results for members and employers.
Apprentice rates of pay are one key factor in ensuring apprentices completions rates are achieved. As part of this bargaining round we need to ensure the percentage of apprentice pay is based off the shop rates not just award.
3. Achievements of 2010 and future challenges
Third today, I want to talk about the achievements of the last 12 months to remind you that what we say here today is not just talk.
Securing Redundancy Entitlements
12 months ago I stood here and said we needed to secure our redundancy entitlements from company collapses. In August last year the government announced it would cover all but 100% of unpaid employee entitlements.
It is a fantastic win and something that we all should be proud of.
Paid Parental Leave
On the first of January this year, the government’s universal Paid Parental Leave scheme of 18 weeks at the minimum wage commenced. That is a real social achievement that will change the way working people are able to enjoy the arrival of a new born into their family.
Superannuation
As I just mentioned, by 2020 the minimum superannuation guarantee will rise from 9 to 12%. We still want 15%, but we can celebrate this victory to see employers providing significantly more towards our retirement.
Growth remains key challenge
We also have to challenge ourselves.
12 months ago I said that growing the union is our greatest challenge – and indeed over the last 12 months we have grown. The resources that the union is putting into seeking out new shops to organize are paying off.
Growth remains the key to delivering on the campaign objectives we set, because it is the key to our influence – in the community and with the government.
Our growth assists our campaigning. Campaigning makes us visible. Our visibility means the community recognises our efforts when we get results.
That recognition buys us more influence. Influence delivers more results and leads more people to join.
If we keep repeating that pattern, we will be very large, very strong, very successful union.
We were successful when we made noise on entitlements and we need to be making a lot of noise to deliver manufacturing jobs for the future.
4. Manufacturing: Australia’s Future
That brings me to the final item today – our campaign called Manufacturing Australia’s Future.
In preparing for this campaign we’ve done some research on community attitudes to find out what message we need to get to the community, to show that manufacturing is key to our economy.
What we found was, that a lot of people didn’t know that the manufacturing sector employs over 1 million people.
They were shocked to hear that manufacturing employs 5 times as many people as mining.
In 2010, the manufacturing sector had sales of more than $420 billion and bought more than $260 billion worth of goods, material and services from other industries.
Manufacturing was responsible for more than $4.5 billion worth of research and development.
Manufacturing attracted over $700 million into training, and last year, manufacturing alone employed 32 000 apprentices.
As we know, the manufacturing sector also generates skills that are used in other industries such as construction and of course the mining and resource sector.
When you give these people that information – they actually get the bigger picture.
The key message that we’ll be driving as part of this campaign is that manufacturing is vital to Australia’s future.
We can’t just rely on a few industries.
We need a diverse economic base.
The ads we are making will be on TV from this Sunday. They will be on radio, and they will be in newspapers.
If you go to the union website or AMWU facebook page you’ll be able to see the ads and share them with your co-workers and friends.
The ads show the industries that AMWU members work in that represent the technology and work of the future. The Hybrid Camry. Solar technology. Bio-technology like the Cochlear ear implant. Important technology for our defence industry such as the Bushmaster vehicle which keeps our troops safe in Afghanistan.
We are targeting these ads at ALP marginal seats in the lead up to the federal budget, and we will be ramping up our campaign nationally over the course of the year.
We need the community to support manufacturing so that we can convince Labor to make the investment.
We can’t continue to have our country distracted by the mining boom when our industry is five times as big.
We can’t put all our eggs in a non-renewable resource sector, when clean energy and low-carbon technology and manufacturing are shaping up as the industries of the 21st century.
Conclusion
For our campaign to be successful, we need everyone in this room to spread our union message.
We have had a successful past 12 months, and are gearing up for some even bigger challenges this year.
I know that if we all work together we can deliver a stronger union, a stronger industry, and a prosperous and rewarding future for manufacturing jobs in Australia.
Thank you.