QANTAS chief executive Alan Joyce has accused "bullying" unions of trying to unwind measures that have made Australia an open and competitive economy, and warned that a protectionist push by the labour movement could lead to more corporate failures and job losses. "Some of the union movement in this country do not realise how open the world has become, how global we've become, how competitive it's become," Mr Joyce told The Australian.
"There is this view I think out there by some of them that somehow we can go back to the pre-liberalisation and protectionism - put back in protectionism, protect industries. We know that's not the case."
Mr Joyce, who is today named as The Australian's most influential business leader, said that in fiercely competitive industries such as aviation, companies that were not "fit and capable and competitive will not survive".
He said his decision last year to ground the entire Qantas fleet to break a dispute with the unions had been positive for the airline, and its core corporate customers quickly returned to the carrier.
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"There was a feeling that somebody needed to stand up to the bullying and what was taking place with the union movement," Mr Joyce said.
As big business gears up its push for industrial relations reform and grows increasingly concerned about the move back to protectionism, the federal government has shifted its language about support for manufacturing industry by warning manufacturers not to expect taxpayers to underwrite exchange rate risks.
Industry Minister Greg Combet yesterday urged manufacturers to change to survive, while Wayne Swan said businesses affected by the high Australian dollar must find new markets and new products. The comments were a shift in rhetoric understood to have come about after criticism Labor was willing to subsidise manufacturing with no strings attached. Mr Combet said economic reform in the past 25 years had meant many people changed jobs. "The government will be looking to the economy making the shift in its competitiveness, becoming more productive, and for the manufacturing sector that means new technologies, heavier investment in research and development, and heavy investment in skills," he told the ABC's Insiders program.
The Treasurer gave a similar message in his weekly note.
"The affected businesses will need to do more to adapt, to improve their efficiency, to spot new opportunities, to find new markets and design new products," Mr Swan wrote.
Business is becoming increasingly vocal about its concerns over the government's industrial relations laws and perceived embrace of protectionist measures.
The Business Council of Australia policy committee, chaired by Wesfarmers boss Richard Goyder, and whose members include Microsoft Australia boss Pip Marlow, met last week to discuss the BCA's position on the Fair Work Act before the review announced by Workplace Relations Minister Bill Shorten closes on Friday.
The BCA also warned that laws to be introduced to parliament making it harder for foreign vessels to operate in Australia's coastal shipping trade, and giving tax incentives to Australian-registered vessels, could lead to higher costs and poorer service.
"Businesses will have an incentive to choose alternative land-based transport options or even to source products from overseas rather than manufacture products in Australia and ship interstate," the BCA says in a submission on the draft reforms.
"As a price-taker for most products in global markets, any increase in domestic transport costs not able to be passed on by Australian businesses results in lower domestic profits and lower capacity to pay wages to workers."
The BCA is urging the government to refer the proposal to the Productivity Commission.
Mr Joyce hit out at a push by independent senator Nick Xenophon and Greens leader Bob Brown to force changes to the Qantas Sale Act as an instance of politicians and unions focusing on domestic need.
"This was all under the guise of protection of Australian jobs, when we know it's going to be negative for Australian jobs," the Qantas boss said.
On the opposition to Jetstar's Asian hub strategy, he said: "If you listen to some of the political leaders and the unions, they would have the view this is somehow negative for Australian jobs. It's absolutely the opposite."