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CHECK AGAINST DELIVERY EMBARGOED UNTIL DELIVERY
SPEECH BY PRIME MINISTER ACTU CONGRESS
SYDNEY 12 SEPTEMBER 1985
Mr President, Delegates,
Let me first, take this earliest opportunity to
congratulate your President-elect on his election as
leader of the great Australian trade union movement.
I do that, first, Simon most sincerely, in the personal
sense. But as one who had the privilege of being one of your
predecessors, I do it with a deep sense of both the
honour and the responsibility your colleagues have
conferred upon you. And I know you share my view that
the responsibilities involved in this office cannot be
limited to the trade union movement alone; but,
precisely because of the fundamental role of the union
movement in the very fabric of this nation, must extend
to the welfare of the Australian people as a whole.
And I congratulate you, as Prime Minister of Australia
and as leader of the Australian Labor Party; and in
doing so, I reaffirm, without inhibition, with pride in
the unique history, tradition and achievement of the
Australian Labor movement, the solidarity between
political Labor and industrial labor.
And I believe that solidarity has never stood on firmer
ground than it does today.
Even more important, never in our movement's long
' history has the un~ ity of purpose be: 3.. 9Ltical and
industrial Labor been used so effectively, so
constructively and so successfully in the interests of
the Australian economy, the Australian people, and the
Australian nation.
And in that achievement what we have achieved together
over the last two and a half years no-one has played a
more important part than your retiring President,
Cliff Dolan.
It was under his leadership of the ACTU that the Accord
was developed and brought into being.
It has been under his leadership that the Accord has
worked sqmething our opponents and the scoffers and
the cynics said could never happen.
And it has worked because, under Cliff Dolan's
leadership, the Australian trade union movement has
honoured the undertakings he gave on its behalf, and has
exercised the restraint and responsibility so essential
for the purposes of the Accord and that too is
something our opponents and the scoffers and the cynics
said would never happen; and, of course in truth, was
the last thing they ever wanted to happen.
And the final week of his presidency has seen the
renewal of the Accord.
Cliff, this ' union movement you have served so long
stands in your debt. The Labor Government is in your
debt. Australia is in your debt.
And let me say delegates, when the dust has settled and
when the people of Australia come to look back at the
events of the past week, it will not be that charade in
Canberra the liberal leadership fiasco they will see
as most important or relevant to their welfare, their
families, their country.,
It will be the renewal of the Accord the guarantee we
have given them together, that we will continue to work
together, and with the business community, and all
sections of the Australian community, to sustain the,
recovery, to maintain growth and fight inflation.
Delegates, I emphasise the point I made to you at your
1983 Congress the first time I acidressed'you as Prime
Minister. I s ! i4 thcr-that it was not t' f*'-ctiJor. ef the Lh-or
Government to be the handmaiden of the tradie union
movem~ ent that our overriding~ rl s;-cr,. sibilities vreto
the people of Australia as a whole.
And that is how our relationship has been conducted in
the past two years on the basis of co-operation,
mutual respect, but never subservience.
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Now delegates,
We've heard a great deal about the relationship between
the Australian Labor Government and the Australian union
movement.
With the lurch of the Liberal leadership to the
reactionary Right, we are going to hear a great deal
more nonsense about it.
As I said) Defore, I make no apology for the solidarity
of political and industrial Labor. It is an historic
partnership that is now better than ever, working for
the good of Australia.
But for the moment setting that aside setting aside,
for the sake of the argument, the most important single
fact in Australian political history the fact is,
delegates, that every Australian Government, Liberal as
much as Labor, must have, of inescapable necessity, a
relationship with the trade union movement.
That is not a matter of choice.
The only choice is what sort of relationship it is going
to be.
It is a choice of whether the relationship is to be
positive or negative, constructive or destructive a
choice between co-operation or confrontation.
You know from experience delegates and the people of
Australia know the difference that choice makes.
And it's not only a difference in economic terms the
difference between record growth or record unemployment.
It's not only a difference in terms of industrial
relations the deliberate fomentation of disputes Under
the Fraser/ Howard approach and our achievement of
record low industrial disputation.
it is a difference that goes to the very fabric of the
Australian society the difference between the
deliberate setting of group against group, Australian
Australian, or the CfrLwe s~ vs tained for
more than two years to get Australians working together.
And let one thing be made clear from the very beginning
of this so-called new leadership and that is simply:
there is nothing new about it.
There is nothing new except the clarity with which we
can see their real intentions: to cut waqes anO cut
: sof all Australians.
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In all its essentials, what is offered is a return to
" their discredited past" all the worst and most
disastrous aspects of the policies, which created
Australia's worst economic crisis for fifty years.
I repeat: the nostrums the snakeoil remedies, as
Peter -Robinson put it in the Sun-Herald being trotted
out under the' guise of a new Liberal leadership are
not new.
It is the regipe as before the methods and policies of
the seven ye~ rs before March 1983.
And at the heart of those policies lay the confrontation
with the trade union movement, the attack on the
arbitration system, the denigration of the Arbitration
Commission and decisively and disastrously in July
1981 the enforced abandonment of effective central
wage fixing.
And that is the precise approach being advocated by the
new leadership, so-called.
And what was the result? Another wage explosion,
followed inevitably by a new bout of inflation, then
the worst recession and the highest unemployment for
fifty years culminating in a unique double:
simultaneously, double-digit inflation and double-digit
unemployment.
No, delegates, they did better than that they scored
the trifecta: double-digit inflation, double-digit
unemployment, and zero growth.
Or even better the quadrella: zero growth, record
inflation, record unemployment and record industrial
disputation. This was the magnificent result of policies which are
now being revived as something new.
As your President before 1980,' I had pleaded with them
not to take that couirse and warned them of the
inevitable consequences that without a system of wage
indexation through. 1 central fixation there was no
Possibility of cv:: iu tr>.
These people are not iust the Bourbo;, s of Australian
politics; they are even more stupid.
For if the Bourbons learnt nothing and forgot nothing,
our opponents have learnt nothing and forgotten
everything.
Well delegates, the people of Australia have learnt, and
they have not forgotten.
They know and remember that in the year before we came
to government, 160,000 Australian jobs disappeared and
unemployment increased by over one-quarter of a million.
They remember that inflation reached more than twice the
OECD average in the same period.
Contrast this with the approach and performance of the
Labor Government, a performance which has generated
410,000, npw jobs.
The central thrust of our approach has consistently been
to develop policies based on a shared appreciation of
our problems and of the way ahead to get Australians
working together for the good of all Australians.
Right from the outset we all were convinced that an
effective prices and incomes policy was an essential
condition for achieving sustained non-inflationary
economic recovery. That was the basis of the Summit
agreement between governments, business and unions.
And, underpinned by the Accord and its associated
machinery and policies, the extent of the recovery has
exceeded the expectations of some of the most optimistic
observers at the time.
Our success to date far exceeds these expectations and
amply demonstrates the manifest correctness of the
Government's economic policy approach an approach
based firmly on our Accord.
During our period in office, Australia has experienced
one of the strongest recoveries of all the OECD
countries already over 12 percent growth through our
first two years.
In only three years we shall have achieved more real
growth than our conservative predecessors did in their
full seven years in office.
Australia's strong growth has been the-key to the
410,000 net:. jobs created since the Economic Summit in
April 1983. In 27/ months we have created 70,000 more
jobs than our pri._ i2e: SSOZ'S managed in their entire term
in office a dismal 88 months.
And now we are moving confidently towards our goal of
creating 500,000 jobs during our first three years of
office. We are well on target.
But delegates, let us at all times acknowledge and
emphasis this:
The Accord-goes far beyond being simply a unique and
uniquely Australian method of controlling inflation
and reducing unemployment. It is a complex of
agreementrand understandings about economic and social
goals for~. this nation the goals which are fundamental
to Labor's vision for Australia.
And it is this aspect of the Accord which makes our
common commitment as a government, as a union movement
so fundamental to Labor's cause. We reject a narrow
commitment to growth for growth's sake. We embrace
growth as the means to build a better, fairer Australia.
The extent of our commitment was convincingly
demonstrated again this week.
I am, of course referring to the historic understanding
reached last week following discussions between the
Government and the ACTU wage negotiating committee over
the agreed policy response to ensuring continued
economic growth and maximising the jobs dividend from
depreciation. I congratulate the trade union movement for your
moderation and responsibility. You have shown your
willingness to respond to the new policy challenges
created by our dynamic economy. Clearly our prices and
incomes Accord is both durable and flexible.
I strongly commend your ratification of the Government's
agreement with your ACTU wage negotiating committee.
our agreement is hist oric in showing the flexibility
inherent in the Accord an Accord which is able to deal
with changed economic circumstances. And this manifest
flexibility is a direct repudiation of those Jere* niahs
who claimed that this Government's unique relationship
with, the . ani-) ns was going to founder on the dollar's
Inst -ad tni-,' enrcn and t-he union movement ' have agi
demonstrated our shared commitment to responsible
economic policies that lay the basis for sustained
economic growth and jobs into the future. We have
Australia's future uppermost in our minds.
Now that we have agreed on a way to handle the adverse
effects of depreciation of the Australian dollar, we can
take advantage of the golden opportunity that it
provides to end the patterns produced by past poor
competitiveness.
This Agreement means two things above all else.
First, it means that the economic recovery can continue.
That means continued expansion in jobs on the pattern of
the past two years.
And in addition, it gi. ves our export and import
competing industries a golden opportunity to benefit
from the depreciation. Our manufacturing industries can
increase their exports, and also the share of the
domestic market that they supply. This alone could mean
100,000 new jobs over time.
Only with competitive industry can we Australians be
sure that those now in jobs will be able to enjoy job
security into the future.
This is surely the fundamental objective of the Iabor
movement the Labor Government and the trade, unions.
You are aware that our agreement includes the provision
that in April 1986 the cost of living adjustments to
wages be reduced by some two percent to take account of
depreciation-induced price rises.
But we are not asking for a cut in real living
standards. We will be supporting, before the
Arbitration Commission, a claim for a three percent
increase in remuneration in the coming productivity
case, with that increase to be paid in the form of
occupational superannuation over the two years from mid-
1986. In addition and assuming that the remainder of the
package is in place the government has agreed to
modify its tax reform package. Income tax deductions
suff:. ient to compensate workers for the two percent
waae increase they have foregone will take effect from 1
Se~.~ ber1986.
Our new acreement avoids the inflationary consequences
of 6c:: eciation an6 preserves our new competitive
advantage. As part of our new agreement, the Government supports
the extension of superannuation on an industry by
industry or an occupation by occupation basis.
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We are agreed that such improvement will be offset
against national productivity.
The Government is committed to the establishment of
genuine superannuation, and intend, after consultation
with employers and unions, to establish a set of
guide * lines covering the necessary features of genuine
superannuation.
These provisions will be the basis on which taxation
concessions are provided for occupational superannuation
and will be-' announced well before July 1986.
Consistent with our commitment under the Accord the
Government will legislate to establish a national safety
net superannuation scheme. We shall provide for
superannuation changes consistent with the productivity
case outcome to our own employees.
In seeking further restraint in the community, my
Government is concerned that the burden of restraint
should be spread equitably. For our part we will be
seeking price restraint consistent with the wage
restraint being sought from the trade union movement by
our new agreement.
As a counterpart to the continued adherence to the
principle of no extra claims by the union movement that
my Government expects, we will not support price
increases which exceed general movements in costs. We
will be instructing the Prices Surveillance Authority
accordingly.
A further part of the new agreement is the support by
both parties to amendments to the current wage fixing
principles in respect of:
allowing claims for the reduction of standard hours,
to 38 to be arbitrated; and
a special review of the problems associated with
the difference between paid rates and minimum rates
awards, including zhe issues of supplementary
payments and the ma-ing of paid rate awards.
We expect to make appropriate submissions on these
matters in the r( tv~ etw of Principles case in due course.
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The continuing success of my Government in achieving the
shared goals of continued economic growth and continual
improvements in living standards for all Australians
will depend crucially on a continuation of the cooperative
and constructive relationship that exists
between us.
A crucial element of this process will be to ensure that
our industries remain competitive in both domestic and
world markets.
We have already taken major initiatives in respect of
the steel industry and the financial sector. Our
policies will continue to ensure that we can continue
this process of improving the efficiency of our
industries through policies based on a clear
understanding of common interests, of employee and
employer.
The success that has been achieved so far in economic
recovery and social change is the clearest indication of
what we can continue to achieve if we continue to work
together and maintain our commitment to the Accord.
Delegates, There has perhaps never been a juncture in our history
when the need for a strong Labor Government and a strong
trade union movement was so vital to the progress and
prosperity of Australia.
It follows therefore, that anything which detracts from
the strength and standing of the trade union movement
diminishes not only the strength and standing of the
Labor Government but Australia's prospects for progress
and prosperity.
It is true that our political opponents have
specifically announced their intention to weaken, if not
indeed to destroy, that strength and that standing.
And it is also true that the greatest source of the
strength of the Australian union movement is its
standing and reputation in the community and the support
derived from the people of Australia, whether or not
Ltiey are j: jic7i. eb ers.
And all of us as unionists have a responsibility to be
vigilant at all times to protect the reputation and
standing of the trade union movement as a whole.
In his address to you Cliff Dolan correctly touched upon
some of the sources, actual and potential, of anti-
. u-niIsr in tlis country.
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And it is one of the great paradoxes of our age that at
a time when the Australian trade union movement has
demonstrated in the clearest possible way its capacity
for restraint and responsibility and at a time when that
restraint and responsibility has produced great benefits
for the whole nation, the union movement should be the
target of such tactics.
But let me say frankly delegates, as one whose whole
career is inextricably linked with this movement and its
great cause, it is not the Howards and the Bjelke-
Petersens tltat we have to fear for the reputation and
standing of the trade union movement, in the eyes of the
people of Australia.
The thing which is most calculated to discredit the
whole union movement and weaken public support for
unionism that public support which is so necessary for
the movement's success and survival is the intrusion
of the tactics of intimidation and even violence. They
are tactics which of their very nature are anti-union
and anti-worker. They have no place in the Australian
union movement.
And this Labor Government makes no apology for acting as
it has done to root out violence and intimidation and to
protect the reputation, the standing, the solidarity, of
this great Labor movement of Australia.
But the really important thing dele gates, is that as a
Government and a movement we must not permit ourselves
to be diverted from the great tasks ahead neither by
the disruptive tactics of mavericks, or the diversionary
tactics of our opponents.
Your Congress this week has made a magnificent
contribution to the reputation, standing and solidarity
of the Labor movement.
You have overwhelmingly endorsed the renewal of the
Accord. That is the most resounding reply you could have given
to the cynics and scoffers who said that the Accord
wouliJ never work, that it cannot last, and that the
tral? n,., vement w~ ould be incaoahlle, in the long
haul, of the foresight and responsibility involved in
making~ the P. ccord work.
And you have given a resounding rebuff to our political
opponents who have placed the destruction of the Accord
and the principles which underpin it at the very head of
their own agenda.
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But far more important delegates, you have said to the
people of Australia in the clearest terms, that this
great union movement will continue to make the maximum
contribution to the sustained economic recovery and will
continue to play its part in the fight against
inflation.
Delegates, It is exactly ten years to the day that I spoke to you
at your Congress, as your President, in these terms:
I say to.' Oyou that our affiliates must
recognisd the full implications of their
actions. It is essential that the selfinterest
of particular groups be balanced
against the interests of workers as a whole.
That, after all, is what trade unionism is
finally about. And there is no doubt that
their paramount interests are to be protected
from rising unemployment and high inflation.
As responsible leaders we are bound to provide
that protection. No rhetoric, or perceived
provocation, should divert us from the basic
duty.
Delegates,
Your renewal of the Accord this week stands as testimony
that those words of mine ten years ago expressed the
true spirit of this great Australian union movement.
And those words remain as true and relevant today as
they were ten years ago, despite the tremendous changes
since then and the transformation in Australia's
prospects. By following the principles I stated then, as you have
done so constructively for the past two and a half years
and as this Congress has undertaken to continue, you
have not only served the best interests of the working
men and women of Australia you represent, but the grEat
cause of the Australian Labor mo~ vement, which, in thE
final analysis, is the cause of the people of Austrii