" Hire and Fire " Rules !

Work status is important - as anyone who has applied for a housing loan would understand.  An applicant who has a secure job with a reliable employer would get a loan approval more readily than someone doing casual work, even if that work had endured over a very long period.   The term " permanent casual  " applies to the job description of many Australian workers.

The union movement has applied to the Fair Work Commission to add a provision allowing casual workers to apply for their job to be changed to either full time or part time status when they have completed six months as a casual.  The Commission has handed down a ruling that partly accepts that position, but with a number of limitations.

Workers have the right to request a status change to permanent employee when they have completed twelve months of work with the same employer, but that employer has the right to refuse if the change would substantially change the worker's hours.   That will now apply to the eighty-eight awards that do not contain such a provision.

This change from !" casual " to " permanent "has many ramifications.  A permanent employee is entitled to both annual and long service leave and may appeal the reason for dismissal in court.  The pay awards that apply to casual workers exceed the hourly rate that applies to permanents to compensate for those benefits.  The change to permanent for many workers would involve an actual pay cut.

This ruling from the Fair Work Commission will concern many small business proprietors.  It seems the first small step towards forcing a change to permanent employment across the board and this would destroy the flexibility that allows business to respond to varying demand for their services.  In particular, many family business ventures have regular casuals that they call in to even out regular demand peaks.  It is often an arrangement that suits both parties.

Now that this change is written into awards there is the expectation that it will be hotly pursued by union organizers.  Many casual workers would welcome an extension of the times they are employed and the employers will be under pressure to extend hours - which may not be applicable to their needs.

If union militancy extends to the numerous suburban shopping centres that are the main source of casual jobs it will provoke a backlash.   Many employers will ensure that no individual is allowed to attain an unbroken record of twelve months service.   Jobs will be split amongst several people for the purpose of achieving that aim and to avoid " ambush " tactics by union organizers.

From the start of civilization the basis of business has been the ability to hire and fire workers in direct ratio to need. Interfering with that cycle merely reduces the number of job opportunities offering.