Ten years ago the union movement defeated the Carr Labor government’s privatisation of electricity generation. The government’s plan was scuttled at a Labor Party Conference by a massive revolt of affiliated union and rank and file ALP delegates.
Since then there have been periodic reports of further moves by the state government towards privatisation. The government has slowly increased prices in the hope that customers will accept the ‘free market option’ of shopping around for the best price if and when they are forced to do so. But opinion polls report that 86% of electricity customers don’t want that. They prefer government ownership and price control over such a basic utility.
Unions are worried about jobs too. In Victoria, after privatisation, not only have prices gone through the roof but many jobs were lost to the industry.
With Bob Carr retired incoming embattled Premier Morris Iemma and his Treasurer Michael Costa want to make an impact on the ‘economic reform front’ and the issue has been resurrected.
A battle has been raging in public and behind the scenes for over a year. Sometimes it has been masked by a unity front against the ‘main enemy’, the now defeated Coalition Federal government. At a state level the differences were put to one side in order to get the ALP state government re-elected last March. Mission accomplished: ALP governments now hold the Treasury benches throughout the land. With that goal achieved, and much to the surprise of sceptics, the gloves appear to be off in the fight to retain public ownership of electricity generation and retail.
The Iemma Labor government commissioned a report on the power industry which told them what they wanted to hear and is determined now push ahead with privatisation of both the retail and electricity generation sectors.
The unions have meanwhile initiated a campaign along the lines of the ACTU’s successful YourRights@Work campaign. There is a dedicated web site, www.stoptheselloff.org.au , mass meetings, posters up and down the countryside, and opinion polls against the sell. Unions NSW has also voted to stage campaigns in 15 key marginal Labor-held seats to oppose the sell-off.
To top it off a very public slanging match erupted between the ALP President, union secretary Bernie Riordan, and the NSW Treasurer, Michael Costa which has been regularly reported in the mass media. In response to threats to expel Costa from the Party the Treasurer retorted he will "not hang around in politics if we're not doing reform", the Sydney Morning Herald reported on 9 February
A 600 strong rally was held in Newcastle on 23 January against privatisation. ALP branches have called for a Special Conference on the issue. The opposition is mounting.
February 26 will see a mass rally in front of Parliament House organised by Unions NSW, the peak state union body.