THE 'BIGGEST PROBLEM' IN AUS BUSINESS

Written on the 4 September 2014 by Australian Mines and Metals Association (AMMA)

THE 'BIGGEST PROBLEM' IN AUS BUSINESS

THE CARBON Tax and Mining Tax may be gone but with one-in-four business leaders now ranking industrial relations the biggest barrier to doing business in Australia, a mature debate about workplace reform is well overdue to get our nation back on a level playing field.

The World Economic Forum (WEF) has released its annual Global Competitiveness Report 2014-15, showing Australia’s ranking has again dropped, and again it is labour relations dragging the chain.

“While local political and vested interest groups continue to neglect and downplay the impact of industrial relations on our competitiveness, the rest of the world views our country as a less attractive place to do business than 12 months ago,” says Steve Knott, AMMA chief executive.

“21 other countries are now perceived as better places to invest and conduct economic activities than Australia, including Luxembourg, Taiwan, Qatar, the UAE and New Zealand.

“Perception remains very important when global companies are looking to invest in a country.

"For the third year in a row, labour regulation has again been singled out from 16 factors as by far the most problematic for doing business in Australia.

“Back in 2010-11, before the full impacts of the Fair Work Act were felt, only 13.1 per cent of survey respondents nominated labour regulation as the biggest barrier to business in Australia.

"This has risen steadily to now see 25.4 per cent, or over one-in-four business leaders, nominate IR as our worst area.”

Tellingly, the WEF measures of corporate governance, tertiary education, market competition, banking stability and scientific research (innovation) all place Australia within the top 10.

Meanwhile, the worst performers are flexibility in wage determination (132), pay and productivity (125), hiring and firing practises (136) and co-operation in labour-employer relations (109).

For the highly globalised resource industry, Mr Knott says this competitive decline in labour relations is exacerbated by emerging low cost competitors and increasing domestic cost pressures.

“We choose to live and work in a first-world nation and thus don’t seek to compete with Asia, West Africa or the Middle East on labour costs, but we clearly compete on the stability of our financial systems, our management and innovation,” he says.

“To properly leverage Australia’s advantages in these other areas, we must recognise and understand the impact of industrial relations when competing for new resource project investment.

“Only by improving our workplace system to at least match our OECD peers can Australia’s overall competitive position in the world rise and see us bring more capital and jobs to this country.”

 


Author: Australian Mines and Metals Association (AMMA)

Latest News

THE STAR'S STUNNING ANSWER TO CROWN'S BARANGAROO

THE Star Entertainment Group (ASX:SGR), not to be outdone by James Packer's Barangaroo development across the ...

BRISBANE COAL TERMINAL REOPENS AFTER SHIPLOADER REPAIR

COAL loading has recommenced at New Hope's (ASX: NHC) Brisbane terminal today after repairs to its ship loader, w...

SUPERYACHTS OFFER UNTAPPED POTENTIAL AT COMMONWEALTH GAMES

SUPERYACHT Australia has devised a strategy to attract more superyachts to Queensland and capitalise on revenue op...

GDP FIGURES A 'WAKEUP CALL' FOR PARLIAMENT

THE GDP figures are an end-of-year wakeup call for Parliament about what lies ahead for the country, according to ...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter