Grumblings over IR Down Under

NEWS.com.au has the story.

The Australian government wants to reform the Industrial Relations laws that guide the country's regulations of businesses. Among other things, it wants to exempt employers of 100 or less from the unfair dismissal rights that workers enjoy in Australia. The Catholic Church opposes many of the measures because they see them as violations of Catholic Social Teaching. There's a catch, though: the law affects them as an employer, too!

John Ryan, executive officer of ACCER, said the Catholic Church would face challenges under the new laws between its role as an employer, and its values and beliefs.

In the past the church has resisted many changes to industrial relations, such as the introduction of Australian Workplace Agreements (AWAs), because they contravened Catholic teachings.

"That's a challenge to us because as an employer we could possibly take the easy way and accept things that could benefit us as an employer," he said.

"Given our social teaching the challenge is what will we do as Catholic employers when this sort of legislation comes in.

"That's a discussion we have to have amongst ourselves.

"We've been very strong on complying with minimum standards wherever we can do what is morally right."

There are assumptions made by many that advocate social justice that somehow free market principle violate the dignity of workers. They act as though employers and employees coming to agreement on salary and compensation packages can never be fair for employees without unions or government involvement. But is that necessarily the case?

Historically, Companies that employed unskilled laborers in factories or mines often paid them little and demanded much for that pittence. While certain reforms inacted in Great Britain began to ease the crisis for 19th century British workers, that culture change took time to cross the Atlantic. Unions rose in influence and effectiveness throughout the Guilded Age and into the twentieth century. Thanks to their accomplishments, the market conditions have changed. Workers' jobs may have more value due to the increased use of capital technology and specialize skills many possess. Is it realistic to expect that suddenly employers will exclusively deal their potential employees such a disadvantaged hand as their ancestors had?

Some regulations remain important. Laws that demand healthy working conditions preserve all of society when they protect the health and lives of workers. Likewise, all workers must always enjoy the right to form unions, so that they can bargain better with employers. How Unions have performed lately for workers, and whether or not they should still suffer membership in unions, is a post for another time.

However, should government insist on minimum wages and so-called unfair dismissal laws? How does this give employers incentives to hire more workers? Europe experiences double-digit unemployment while mandating the highest minimum wage laws in the world. This is a coincidence? How much do conditions that contribute to unemployment violate the dignity of the worker?

Wages for workers should not be calculated on the basis of a single worker. People need to support their families, after all. Yet while workers should never be considered to be just commodities, can their labor be treated in any way other than an economic one.

This gets into the intangible values of ones work. The fulfillment of contribution that every one's work provides certainly adds value both to the worker and the employer. This should play some part in determining a wage. Otherwise, let the parties involved decide. Government should be on hand to enforce a level playing field. Nothing more.

If those that seek social justice pay closer attention to the principles of economics, then they can better apply the fullness of CST to policy decisions. Otherwise they risk becoming apologists for welfare states that Pope John Paul the Great has already condemned as an abuse of government. Seek the truth in all things, for truth sires justice.