Skip to main content

To employ or to contract?

It is heartening to potentially see emerging to legitimacy in contemporary polemics the notion that employment, with all its attendant rights and long term benefits for the employed, may not be an optimal relationship for the encouragement and fostering of success and prosperity in small business.

This article, "The Growth Agenda - the Self Employment Option" by Dr Madsen Pirie of the Adam Smith Institute advocates for "all small and medium enterprises to treat their workers as self-employed people under contract". He argues that "employers could take on extra people on a self employed basis without imposing any additional burden on themselves".

This argument strikes me intuitively as quite compelling. Inevitably any discussion of possible changes to the existing structures for workers' rights can provoke unnecessarily over emotional responses from the entrenched conservatism of trade unions and their enablers in protecting prevailing guild privileges, but in principle this idea seems to have a lot to recommend it, if the frame of reference is for the well being and prosperity of the whole economy, not just the quite specific sectional interests of large employer and large employee associations.

It is interesting to observe the UK Conservative government potentially entertaining such a far reaching reform, whilst at the same time the Australian Labor government seems intent on discrimination against out-sourcing and independent contracting by encouraging the taxation system to create heavy disincentives to contractors who might further threaten the long term drop in the numbers of workers who join trade unions.

This looks like yet another example of how the allegedly "progressive" side of politics is "regressive" in reinforcing authoritarian legal rigidities, whilst the allegedly "conservative" side of politics is  "progressive" in advocating for increased freedoms and flexibility in labour markets.

It seems, in Australia at least, to continue to support the "progressive" side of politics, is, ironically, to be an enabler of the preservation of institutional inflexibilitiy in existing workplace relationships and against the interests of a dynamic and flexible workplace environment susceptible to change and progress in overall societal prosperity.

Comments

Popular posts from this blog

Michael Jackson, martyr ?

. Someone has to die for their beliefs to be a martyr . Drudge pointed to headlines last Friday saying that Jackson's was a " Death by Showbusines s". So in the sense that Jackson seems to have died for his belief in celebrity, yes, he might be called a martyr. I never got Michael Jackson. Thriller didn't thrill me at all ( Now Noel Coward, that's another story ). But I did get a bit of a kick from seeing others get him. He was boppy and catchy and slick, as well as monumentally fluffy and hugely impaired. What I struggle with is the apparently massive consequentiality of fluffiness and impairment like Jackson's. What is the fuss about the passing of a semi-talented song and dance weirdo from decades past? Boris Johnson, the London Mayor, has had a stab at explaining it to we mystified souls who struggle to get with the programme. He reckons it's just like Princess Di. And I agree, to the extent that I was almost as unprepared for and dumbfounded by th

Rugby bureaucrats, Stalin's spawn?

In recent weeks two larger than life Rugby players have experienced the tyranny of justice in a universe even more capricious and hostile than their sport: the world of sports officialdom. First Bakkies Botha , the great and brutal Springbok second-rower, got a raw deal from some small minded and ignorant Rugby officials. They banned him for a couple of matches over an incident that any disinterested rugby fan will tell you happens at nearly every ruck in every game of rugby: the clean out. The Springboks protested this dumb decision by each Springbok player wearing an armband saying "JUSTICE 4 Bakkies" at the following Test match against the British & Irish Lions in Jo'berg. And now the Springboks themselves have been cited by the International Rugby Board for "bringing the game into disrepute" and breaching the "IRB Code of Conduct" by questioning the disciplinary rulings of IRB sanctioned bodies. From little stupidities, big stupidities grow

Will Ray Finkelstein's statutory "News Media Council" enable a totalitarian state?

" The fight for freedom begins with free speech " Aung San Suu Kyi, The Observer, Sunday 11 March 2012 Aung San Suu Kyi was not saying this specifically in response to the report published 11 days earlier by the Honourable Ray Finkelstein QC on 28 February 2012 of his "Independent Inquiry into the Media and Media Regulation", but she could have been. Mr Finkelstein says in his report to the Australian Federal Labor government, who commissioned it, the following: 11.44 To rectify existing and emerging weaknesses in the current regulatory structures it is recommended that there be established an independent statutory body which may be called the "News Media Council", to oversee the enforcement of standards of the news media. ... 11.55 The News Media Council requires clearly defined functions. It is not recommended that one of them be the promotion of free speech. There are other ample bodies and persons in the community who do that more than adequ