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Australians Overwhelmingly Against Changes To Unfair Dismissal Laws For Smaller Companies

Finding No. 3878 - July 27, 2005

The Federal Government has proposed that unfair dismissal laws be abolished for employers with one hundred staff or less. Australians are overwhelmingly against this proposal, with 70% saying they disagree, compared with 24% of Australians who agree with the proposal and 6% who couldn’t say, according to a special telephone Morgan Poll, conducted July 20/21 to assess the views of Australians towards the Federal Government’s proposed Industrial Relations Reforms.

The majority of Australians (79%) have heard about the Federal Government’s proposed Industrial Relations reforms - nearly half (47%) of Australians disagreeing with the proposed Industrial Relations reforms, only 17% saying they agree, and 15% unable to say. However despite the publicity surrounding the proposed changes, 21% of Australians have not heard about them.

Only 10% of Australians believe they and their families will be better off under the proposed Industrial Relations reforms, whilst 42% think they will not be better off and 27% are unsure (21% had not heard of the proposed reforms).

Gary Morgan says:

“Industrial Relations reform is an issue that has the potential to swing votes. With 47% of Australians disagreeing with the proposals, 21% not having read or heard of the proposed reforms yet and a further 15% undecided on the issue, the Howard Government will have to move very carefully when implementing these proposals.

“Early indicators from the electorate are that ‘softer’ issues like the extension of the probationary period for new employees from 3 to 6 months and allowing employees to cash in some of the annual leave, will not be especially problematic. However, any moves to change unfair dismissal laws, such as abolishing the laws for smaller employers, will be regarded negatively by the electorate.”

Proposed Reforms

As part of the Industrial Relations reforms the Federal Government has proposed extending the probationary period for new employees from 3 to 6 months. Slightly more Australians disagree with this proposal than agree (47% cf 43%), whilst 10% couldn’t say.

A majority of Australians (55%) agree with the Government’s proposal that employees be able to cash in two weeks of their annual leave. Thirty nine percent of Australians disagree with this proposal and 6% were unable to say.

The 21% of Australians who had not heard of the Industrial Relations reforms initially, were asked again if they agreed or disagreed with the reforms. The response was divided, with 7% disagreed with the reforms, 5% agreed and 9% unable to say.

Those surveyed on July 20/21 were asked if they had any comments or reasons why they disagree with the proposed Industrial Relations reforms. Many respondents mentioned workers’ rights as a major concern, with common responses being:

“I feel that workers do not have the capacity or skills to negotiate conditions and pay with employers on the same level”, “The average Australian will be worse off. There is too much power proposed for the employers - it can only make the standards for the worker go down”, “The changes would take away the workers rights and offer little support in any bargaining” and “It is going to effect employment prospects for the future. It is going to lead to unfair dismissals and lead to the workers losing their rights and privileges”.

Other respondents commented that employers would take advantage of employees under the proposed changes, saying:

“I think that major companies and even small businesses will exploit workers by employing more people as casual and doing away with long service leave. The changes will be in favour of the employer not the employee”, “Workers need unions to maintain fair conditions. If employers have the power they will do anything to make money”, “It would be removing the rights of the average employee and allowing employers to abuse and misuse their authority. It would reduce policy and guidelines for the workplace” and “It gives the employer too much power. Employers will be able to offer contracts selectively and get rid of the people they want”.

Concern for employees in small businesses was mentioned by others, with comments such as:

“Everybody should be covered by the same unfair dismissal laws, regardless of the number of employees in the business” and “I think people who work in small business should have the same rights as those who work in big business”.

Of those who agree with the Industrial Relations reforms, many believe they will benefit Australian employers — particularly small business employers, with common responses being:

“As a manager I agree with the unfair dismissal laws in a business sense. Businesses should be able to shed unsuitable or unproductive employees without fear of penalties”, “I have seen small businessmen be abused by employees and go broke. I have seen employees who are useless - employers can’t get rid of them without paying them out”, “As a small business owner I can appreciate the problems associated with employing people” and “I can see it from both sides, but I honestly do think that the manager should have the right to fire a person who isn’t doing their job properly”.

Others believed the reforms will be beneficial to the economy, saying:

“Without reforms we are not going to be competitive”, “I think the reforms are going to improve the Industrial Relations system, resulting in a stronger economy, higher wages and more jobs” “It could become more competitive. The productivity is not there. We need the external motivation”, “I think it will be beneficial for the long term stability of our economy” and “I think productivity levels will increase in the manufacturing sector”.

This special telephone Morgan Poll was conducted on the evenings of July 20/21, 2005, with 651 respondents aged 14 and over Australia-wide.     

 

For further information:

Gary Morgan :   Office (03) 9224 5213   Mobile 0411 129 094   Home (03) 9419 3242

Michele Levine :   Office (03) 9224 5215   Mobile 0411 129 093   Home (03) 9817 3066

Proposed Industrial Relations Reforms

Respondents were first asked: “Firstly, about the Federal Government’s proposed Industrial Relations reforms. Have you read or heard about this?”

Men were more likely than women (84% cf 74%) to have read or heard about the Federal Government’s proposed Industrial Relations reforms.

People aged 35 and over were the most likely (87%) to have heard about the proposed reforms.

Total All

People Aged 14+

Analysis by Sex and Age

July 20/21        
2005 Men Women

14-17#

18-24 25-34

35-49

50+
% % % % % % % %

Yes

79 84 74 40 60 78 87 86

No

21 15 26 57 40 22 13 13

Total

100 100 100 100 100 100 100 100

# Sample sizes less than 50 should be treated with caution

 

Analysis by voting intention shows that a large majority of L-NP (84%) and ALP (82%) supporters have read or heard about the Federal Government’s proposed Industrial Relations reforms.

Total All

People Aged 14+

Analysis by Voting Intention

July 20/21

Aust

The

Family

Ind /

No

2005

L-NP

ALP

Dem.#

Greens#

First#

Other#

Answer*

% % % % % % % %

Yes

79 84 82 84 96 72 76 52

No

21 16 18 16 4 28 24 47

Total

100 100 100 100 100 100 100 100

# Sample sizes less than 50 should be treated with caution

*Includes all respondents who were undecided on voting intention, plus those ineligible to vote and those aged 14-17

 

Agree Or Disagree With Industrial Relations Reforms?

Respondents who had read or heard about the proposed Industrial Relations reforms were then asked: “Do you agree or disagree with the proposed Industrial Relations reforms?”

Men were more likely than women (19% cf 14%) to agree with the proposed reforms.

Analysis by age shows those aged over 50 were more likely (at 24%) than any other age group to agree with the proposed Industrial Relations reforms. Those in the 14-17 year age group were the least likely (at 3%) to agree with the reforms.

Total All

People Aged 14+

Analysis by Sex and Age

July 20/21

       
2005 Men Women 14-17# 18-24 25-34 35-49 50+
% % % % % % % %

Agree

17 19 14 3 4 16 17 24

Disagree

47 51 43 30 38 48 53 49

Can’t say

15 14 16 7 18 14 17 14

Haven’t heard of reforms

21 16 26 60 40 22 13 13

Total

100 100 100 100 100 100 100 100

 

 

 

 

 

Supporters of the L-NP were more likely than supporters of any other party to agree with the Government’s proposed Industrial Relations reforms, with 35% agreeing.  Only 5% of supporters of the ALP agreed with the proposed reforms.

Total All

People Aged 14+

Analysis by Voting Intention

July 20/21

Aust

The

Family

Ind /

No

2005

L-NP

ALP

Dem.#

Greens#

First#

Other#

Answer*

% % % % % % % %

Agree

17 35 5 10 4 7 9 6

Disagree

47 25 72 66 71 52 52 34

Can’t say

15 24 5 8 21 14 15 12

Haven’t heard of reforms

21 16 18 16 4 27 24 48

Total

100 100 100 100 100 100 100 100

# Sample sizes less than 50 should be treated with caution

*Includes all respondents who were undecided on voting intention, plus those ineligible to vote and those aged 14-17

 

People living in country areas were more likely than people living in capital cities (21% cf 14%) to agree with the proposed Industrial Relations reforms.

On a State-by-state basis, those living in Queensland and Tasmania were the most likely to agree with the proposed reforms, with 24% each. Victorians were the least likely (14%) to agree with the proposed Industrial Relations reforms.

 

Total All

People Aged 14+

Analysis by Region and State

20/21 July

Capital

Country

2005

Cities

Areas

NSW

Vic

Qld

SA

WA

Tas

 

%

%

%

%

%

%

%

%

%

Agree

17

14

21

15

14

24

15

18

24

Disagree

47

48

46

49

46

40

46

56

47

Can’t say

15

16

13

14

14

18

20

10

4

Haven’t heard of reforms

21

22

20

22

26

18

19

16

25

Total

100

100

100

100

100

100

100

100

100

White Collar workers were more likely than Blue Collar workers (20% cf 11%) to agree with the industrial relations reforms.

 

Total All

People Aged 14+

Analysis by Occupation of Respondent

20/21 July

White

Blue

2005

Collar

Collar

 

%

%

%

Agree

17

20

11

Disagree

47

43

55

Can’t say

15

17

11

Haven’t heard of reforms

21

20

23

Total

100

100

100

 

Family Better Off With Proposed Industrial Relations Reforms?

Respondents who had read or heard about the proposed Industrial Relations reforms were then asked: “In your opinion w ill you and your family be better off with the proposed Industrial Relations reforms, or not?”

 

Men were more likely than women (14% cf 7%) to believe that they and their family would be better off under the proposed Industrial Relations reforms.

People aged 35 to 49 were slightly more likely than any other age group to think that they and their family would be better off under the proposed Industrial Relations reforms, with 12%.

  Total All People Aged 14+ Analysis by Sex and Age
  July 20/21        
  2005 Men Women 14-17# 18-24 25-34 35-49 50+
% % % % % % % %

Yes, will be better off

10 14 7 7 8 11 12 10

No, will not be better off

42 42 42 25 34 44 48 49

Can’t say

27 28 25 8 18 23 27 30

Haven’t heard of reforms

21 16 26 60 40 22 13 11

Total

100 100 100 100 100 100 100 100

 

Supporters of the Australian Democrats were most likely to think that they and their family would be better off under the proposed Industrial Relations reforms, with 27%, whilst no supporters of Family First though that they and their family would be better off.

  Total All People Aged 14+ Analysis by Voting Intention
  July 20/21     Aust The Family Ind / No
  2005 L-NP ALP Dem.# Greens# First# Other# Answer*
  % % % % % % % %

Yes, will be better off

10 17 6 27 5 - 3 9

No, will not be better off

42 29 60 28 63 45 41 28

Can’t say

27 38 17 29 28 27 32 15

Haven’t heard of reforms

21 16 17 16 4 28 24 48

Total

100 100 100 100 100 100 100 100

# Sample sizes less than 50 should be treated with caution

*Includes all respondents who were undecided on voting intention, plus those ineligible to vote and those aged 14-17

 

Western Australians were the most likely (14%) to think that they and their families would be better off under the proposed reforms, whilst Victorians were the least likely to think they and their families would be better off, with 4%.

 

Total All

People Aged 14+

Analysis by Region and State

20/21 July

Capital

Country

2005

Cities

Areas

NSW

Vic

Qld

SA

WA

Tas

 

%

%

%

%

%

%

%

%

%

Yes, will be better off

10

10

11

13

4

11

7

14

13

No, will not be better off

42

41

44

40

47

40

45

42

29

Can’t say

27

28

25

25

23

31

29

28

33

Haven’t heard of reforms

21

21

20

22

26

18

19

16

25

Total

100

100

100

100

100

100

100

100

100

 

White Collar workers were more likely than Blue Collar workers (12% cf 8%) to think that they and their family would be better off under the proposed Industrial Relations reforms.

 

Total All

People Aged 14+

Analysis by Occupation of Respondent

20/21 July

White

Blue

2005

Collar

Collar

 

%

%

%

Yes, will be better off

10

12

8

No, will not be better off

42

40

45

Can’t say

27

28

24

Haven’t heard of reforms

21

20

23

Total

100

100

100

 

Probationary Period Extended From 3 To 6 Months

All respondents were then asked: “ It is proposed that the probationary period for new employees be extended from 3 to 6 months. Do you agree or disagree with this proposal?”

 

Women were more likely than men (45% cf 41%) to agree with the proposal that the probationary period for new employees be extended from 3 to 6 months.

A majority (51%) of people aged over 50 agreed with the proposal, compared to only 21% of people aged between 14 and 17.

Total All People Aged 14+ Analysis by Sex and Age
July 20/21          
2005 Men Women 14-17# 18-24 25-34 35-49 50+
% % % % % % % %

Agree

43 41 45 21 39 38 42 51

Disagree

47 49 45 46 51 60 51 37

Can’t say

10 10 10 33 10 2 7 12

Total

100 100 100 100 100 100 100 100

# Sample sizes less than 50 should be treated with caution

 

A majority of supporters of the L-NP (55%) agreed with the proposal that the probationary period for new employees be extended from 3 to 6 months, compared with 37% of ALP supporters. Supporters of the Greens were least likely (28%) to agree with the proposal.

Total All People Aged 14+ Analysis by Voting Intention
July 20/21   Aust The Family Ind / No
2005 L-NP ALP Dem.# Greens# First# Other# Answer*
% % % % % % % %

Agree

43 55 37 43 28 34 43 32

Disagree

47 36 57 47 62 58 51 43

Can’t say

10 9 6 10 10 8 6 25

Total

100 100 100 100 100 100 100 100

# Sample sizes less than 50 should be treated with caution

*Includes all respondents who were undecided on voting intention, plus those ineligible to vote and those aged 14-17

 

Analysis by State shows that those from Tasmania were the most likely (49%) to agree with the proposal that the probationary period for new employees be extended from 3 to 6 months, people from New South Wales (45%) and Victoria (42%) were next, followed closely by Queensland, South Australia and Tasmania with 40% each.

 

Total All

People 14+

Analysis by Region and State

20/21 July

Capital

Country

2005

Cities

Areas

NSW

Vic

Qld

SA

WA

Tas

 

%

%

%

%

%

%

%

%

%

Agree

43

43

43

45

42

40

40

40

49

Disagree

47

45

51

44

47

55

37

51

32

Can’t say

10

12

6

11

11

5

23

9

19

Total

100

100

100

100

100

100

100

100

100

 

Cash In Annual Leave

Respondents were then asked: “It is proposed that employees will be able to cash in two weeks of their annual leave. Do you agree or disagree with the proposed idea?”

An analysis by age shows that people aged over 50 were least likely (47%) to agree with this proposal.

Total All People Aged 14+   Analysis by Sex and Age
July 20/21        
2005 Men Women 14-17# 18-24 25-34 35-49 50+
% % % % % % % %

Agree

55 55 55 59 61 58 61 47

Disagree

39 41 38 23 34 40 36 47

Can’t say

6 4 7 18 5 2 3 6

Total

100 100 100 100 100 100 100 100

 

Supporters of the L-NP were the most likely to agree with the proposal that employees be able to cash in two weeks of their annual leave, with 65%. Supporters of the Greens (40%) and the ALP (44%) were the least likely to agree.

Total All People Aged 14+   Analysis by Voting Intention
July 20/21 Aust The Family Ind / No
2005 L-NP ALP Dem.# Greens# First# Other# Answer*
% % % % % % % %

Agree

55 65 44 53 40 61 57 58

Disagree

39 30 52 47 58 39 41 27

Can’t say

6 5 4 - 2 - 2 15

Total

100 100 100 100 100 100 100 100

# Sample sizes less than 50 should be treated with caution

*Includes all respondents who were undecided on voting intention, plus those ineligible to vote and those aged 14-17

A majority of people in both capital cities (56%) and country areas (52%) agree with the proposed idea that employees be able to cash in two weeks of their annual leave.

On a state-by-state basis, Western Australians (68%) and Queenslanders (66%) were most likely to agree with the proposal, whilst people from New South Wales (48%) were the least likely.

 

 

Total All

People Aged 14+

Analysis by Region and State

20/21 July

Capital

Country

2005

Cities

Areas

NSW

Vic

Qld

SA

WA

Tas

 

%

%

%

%

%

%

%

%

%

Agree

55

56

52

48

51

66

50

68

56

Disagree

39

38

42

43

46

30

39

30

32

Can’t say

6

6

6

9

3

4

11

2

12

Total

100

100

100

100

100

100

100

100

100

 

White Collar workers (57%) were more likely than Blue Collar workers (50%) to agree with the proposed idea that employees be able to cash in two weeks of their annual leave.

 

Total All

People Aged 14+

Analysis by Occupation of Respondent

20/21 July

White

Blue

2005

Collar

Collar

 

%

%

%

Agree

55

57

50

Disagree

39

37

43

Can’t say

6

6

7

Total

100

100

100

 

Unfair Dismissal Laws

Respondents were then asked: It is proposed that unfair dismissal laws be abolished for employers with 100 staff or less. Do you agree or disagree with this?

Men were more likely than women (27% cf 22%) to agree with the proposal that unfair dismissal laws be abolished for employers with 100 staff or less.

Analysis by age shows that those aged over 50 were more likely (28%) than any other age group to agree with the proposal.

Total All People Aged 14+   Analysis by Sex and Age
July 20/21        
2005 Men Women 14-17# 18-24 25-34 35-49 50+
% % % % % % % %

Agree

24 27 22 25 21 21 23 28

Disagree

70 68 71 64 74 78 73 63

Can’t say

6 5 7 11 5 1 4 9

Total

100 100 100 100 100 100 100 100

L-NP supporters were the most likely (38%) to agree with the proposal that unfair dismissal laws be abolished for employers with 100 staff or less. Markedly less (15%) supporters of the ALP agreed with the proposal.

Total All People Aged 14+   Analysis by Voting Intention
July 20/21 Aust The Family Ind / No
2005 L-NP ALP Dem.# Greens# First# Other# Answer*
% % % % % % % %

Agree

24 38 15 - 6 21 25 24

Disagree

70 55 83 92 92 72 67 65

Can’t say

6 7 2 8 2 7 8 11

Total

100 100 100 100 100 100 100 100

# Sample sizes less than 50 should be treated with caution

*Includes all respondents who were undecided on voting intention, plus those ineligible to vote and those aged 14-17

 

People in country areas were more likely than those in capital cities (26% cf 23%) to agree with the proposal that unfair dismissal laws be abolished for employers with 100 staff or less.

On a state-by-state basis, Queenslanders (33%) were the most likely to agree with the proposal, with Western Australians the least likely (20%).

  Total All People 14+ Analysis by Region and State
20/21 July Capital Country
2005 Cities Areas NSW Vic Qld SA WA Tas

 

%

%

%

%

%

%

%

%

%

Agree

24

23

26

22

23

33

23

20

24

Disagree

70

70

69

72

70

63

72

73

60

Can’t say

6

7

5

6

7

4

5

7

16

Total

100

100

100

100

100

100

100

100

100

 

White Collar workers (27%) were more likely than Blue Collar workers (21%) to agree that unfair dismissal laws be abolished for employers with 100 staff or less.

 

Total All

People 14+

Analysis by Occupation of Respondent

20/21 July

White

Blue

2005

Collar

Collar

 

%

%

%

Agree

24

27

21

Disagree

70

67

74

Can’t say

6

6

5

Total

100

100

100

 

Agree Or Disagree With Industrial Relations Reforms?

Respondents who had not read or heard about the proposed Industrial Relations reforms were then asked: “Do you agree or disagree with the proposed Industrial Relations reforms?”

Women were more likely than men (6% cf 4%) to agree with the proposed reforms.

Analysis by age shows those aged 18 to 24 and 25 to 34 were more likely than any other age group to disagree with the proposed Industrial Relations reforms, with 12% each.

Total All People Aged 14+   Analysis by Sex and Age
July 20/21        
2005 Men Women 14-17# 18-24 25-34 35-49 50+
% % % % % % % %

Agree

5 4 6 22 9 5 1 3

Disagree

7 6 7 8 12 12 6 3

Can’t say

9 6 13 30 19 5 6 8

Heard of reforms initially

79 84 74 40 60 78 87 86