Small and medium establishments and the new federal workplace relations system

According to the Howard government and some 'small business' organisations, the changes made to Australian industrial relations arrangements by the 2005 'Work Choices' Act will be of particular importance to small and medium sized establishments (SMEs). Specifically, the dilution of the industrial award system, and State awards in particular, and the exemption to firms employing 100 or fewer staff from unfair dismissal laws will allow SME employers to introduce more 'flexible' employment practices and employ more staff. This paper discusses the survey responses of employers or managers from 121 workplaces in Sydney, the overwhelming majority being SMEs. The results suggest that there is little enthusiasm by management to embrace the decentralisation, deregulation and individualist agenda of the federal government's 'New Workplace Relations System'. Management in most workplaces were found to be reliant on industrial awards, satisfied with the award system, not hostile towards trade unions, rely on the advice of employer associations, and appear to be uninterested in reforming unfair dismissal laws. These results question the motivations behind the Howard government's industrial relations agenda, and challenge the assertions of organisations purporting to advocate on behalf of SME employers.