âMore jobs, better pay, and unforeseen productive potentialâ is what the Australian Federal Government and business lobbyist groups have promised Australians from the âworkchoicesâ Legislation. But what are these laws really focused on improving - productivity or profits? Profits of course! We can all agree that improving productivity is fundamental to sustaining long term economic growth. Australiaâs new industrial laws provide businesses with access to a âflexibleâ labour market where workers are forced to accept lower real wages and working conditions. The rationale behind this is that flexibility and lower labour costs will increase employment and lead to economic growth which will inevitably benefit workers in the long run. However, the answer is NOT to simply introduce radical reforms which diminish the collective bargaining power and rights of workers. If you pick up your âIntroduction to Economicsâ textbook and read up on labour markets, you will recognise that the key drivers of productivity are in fact investment in âtechnologyâ and âskillsâ!!! A technologically advanced economy armed with an army of skilled workers allows it to operate efficiently to produce more and better quality output. The only effect these new laws will have is to promote inefficient, labour-intensive industries which does nothing to promote productivity in the economy. So back to the question of productivity or profits. This answer IS simpleâ¦ Is there really any benefit to the economy from these industrial reforms or is it just another attempt by corporate Australia to âsteal from the poor and give to the richâ?