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Productivity hit as days lost to union action skyrocket

A sharp increase in working days lost to industrial action in 2024 shows the union movement has been emboldened by dramatic changes to the Federal industrial relations regime. 

Figures released by the Australian Bureau of Statistics show a 40% increase in days lost to industrial disputes across Australia. Top view, Team engineer building inspection use tablet computer and blueprint working at construction site. Civil Engineer, Contractor and Architect discussing in construction site.

Al up, 131,1000 working days were lost in 2024, compared with just 99,300 in 2023. The number of employees taking part in industrial action also increased to 89,100 in 2024, up from 46,000 the year before. 

CCIWA CEO Peter Cock said it’s clear the union movement is flexing its muscles.  

“A 40% increase in just 12 months is an alarming result and should serve as a wake-up call to the Federal Government that it has got the balance wrong,” he said. 

“The sweeping industrial relations changes introduced over the past two years seemed only designed to fix the problem of falling union membership. 

“It’s undeniable that these reforms, which touch every single business in the country, are directly leading to industrial strife in Australian workplaces. 

Working days lost up 56%

In Western Australia, working days lost to industrial action increased by 56% last year, rising from 7,500 in 2023 to 11,700 in 2024.  

“Worryingly, we now see the union movement increasing its presence in the Pilbara after being virtually absent for decades, forcing its way into negotiations whether workers want it or not,” Dr Cock said. 

“Any attempt by the unions to drag us back to the 1980’s where workers in the Pilbara would strike over the slightest grievance would have significant impacts on the WA economy and destroy the global reputation of the Australian mining industry.” 

Dr Cock said any further increase in days lost to industrial action will drive a wrecking ball through Australia’s economic productivity.  

“An industrial relations system that tips the scales too far towards the unions will be a significant drag on productivity in this country,” he said. 

“Australia is in a race to maintain its global competitiveness and improving economic productivity is central to that. 

“We need an industrial relations system that can give investors confidence, not one that hands excessive power to union bosses.” 

CCIWA calls on all political parties to commit to reestablishing a more balanced industrial relations system.

 

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