More IR red tape: Treasury analysis 10:31am 7.05.08

Changes to the industrial relations laws, particularly Labor’s withdrawal of WorkChoices, may cause job losses and higher inflation, according to a Treasury analysis conducted in April last year. Restrictions on unfair dismissal laws will also increase red tape for small business.

Treasury, under secretary Ken Henry, advised that the withdrawal of Australian Workplace Agreements (AWAs), the backbone of the Howard Government’s WorkChoices, would cause "upward pressure on prices" and allow unions to "bid wages up above their market level".
 
Minister for Workplace Relations Julia Gillard dismissed the analysis, saying it was conducted prior to the release of Labor’s ‘Forward with Fairness’ policy. "This is a document of the former government and it can't be an analysis of Labor's policy."
 
The analysis was obtained by The Australian newspaper under a Freedom of Information request.