In a move which indicates the inherent difficulties when States purport to hand over their IR powers, the Victorian Government’s proposal to transfer its IR powers to the Commonwealth has been watered down by the Victorian’s desire to hold on to a number of important IR matters.

The Victorian Government will be handing over the following matters:

• conciliation and arbitration of industrial disputes;
• employment agreements;
• minimum terms and conditions of employment;
• unfair dismissals; and,
• freedom of association laws.

On the other hand, the Victorian Government will hold on to the following matters:

• long service leave;
• public holidays;
• apprenticeship;
• superannuation;
• equal opportunity;
• workers compensation; and,
• health and safety powers.

And the fact remains that the Victorian Government can, at any time, take back any or all of the powers it has transferred to the Commonwealth.

For this reason, harmonisation is considered in some quarters to be a more effective tool than talk of a possible unitary system.