NSW Labor premier defies Labor conference: will unions meet the challenge?

The New South Wales Labor (ALP) Annual Conference on 3 May made it clear that Labor Premier Morris Iemma’s plan to sell off publicly owned electricity utilities goes against the clear wishes of the vast majority of labour movement. But the defeat on the Conference floor holds both promise and threat for those who support rank and file control by the labour movement of “their” party.
Both Iemma and Treasurer Michael Costa made it clear that they would push on with their plans in the face of such overwhelming opposition “for the good of the 7 million people of NSW”. The Premier did not stay for the debate but left defence of government policy in the hands of its main proponent, the Treasurer who was met with cat calls and constant jeering from the assembled delegates.
Outside the Conference venue was the chosen site of a May Day rally with an anti-privatisation theme at which the Secretary of the peak NSW union body, John Robertson, spoke strongly in favour of public ownership of electricity. There were constant calls both from the platform and from the 2,000 protestors for “Costa out”. The mood was lively and angry that the wishes of the vast majority were likely to be ignored by a Labor government on such a critical issue.
Before Conference the media commentators signalled a defeat of around 600 votes against privatisation to about 150 for. In the end the vote was 702 against and only 107 in favour. On the face of it this is a resounding victory. Treasurer Michael Costa’s performance at conference and to the media made it clear that labour activists should be very nervous about what comes next.
After the vote was taken the essential question is, of course, “what next”? According to the ABC report:
“Russ Collison from the Australian Workers' Union urged Mr Iemma to back down.
"In no uncertain terms - no uncertain terms - don't you dare, and you do it at your peril," he said.
ALP State president Bernie Riordan says Mr Iemma needs to accept the ALP's decision opposing privatisation.
"The rank and file of the party has clearly spoken that they want to keep the electricity assets in public hands and the party policy was re-affirmed along those," he said.”
Expulsions?
Before Conference there was talk of expulsions. At least one ALP branch formally moved for the expulsion of the Treasurer from the ALP. (There are precedents for this: Queensland Labor premier Vince Gair was expelled by the ALP while still in office as premier, in 1957 and NSW Premier, William Holman in 1916 over conscription in WW1).
Costa replied with a blunt 'I don’t care' to such propositions. However the mood after Conference appeared more conciliatory on the part of the union leaderships. The talk in the media was of compromise along the lines of “a public/private arrangement". Something Unions NSW had offered all along. So what does Russ Collison’s “at your peril" really mean?
The far left is promoting such ideas as continuing the opposition from the Your Rights @ Work groups still active, picketing MPs offices building up more of the email and petition campaign. All very good.
But the Labor Movement would be well advised to learn a lesson from the British on this score. On his path to cutting links with the unions Tony Blair more or less dared union leaders to take stands he would oppose and would ignore in government. In the end the UK labour movement stood by as the union voice within the Labour Party was made less and less. Today the British Labour Party is a shadow of its former self and its dismal performance at recent local council elections signal the probable demise of the Gordon Brown government.
Without overt support for those MPs who have threatened to cross the floor, without upping the ante within the ALP, it is likely that the NSW labour movement could follow a similar path. Strong talk by such leaders as John Robertson, Bernie Riordan and Russ Collison must be followed by strong action. Continued mobilisation of the labour movement rank and file is the platform for building an alternative to the “Blairisation” of the ALP. Or if that cannot be avoided, then perhaps the basis on which a labour movement based alternative might be built.
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empty talk of crossing the floor
Today, Tuesday, three days after the ALP Conference vote in favour of public ownership of electricity utilities there are no signs of continued fight within the Pariliamentary Labor Party. According to the ABC:
"New South Wales Premier Morris Iemma has emerged victorious from Caucus, describing it as a very good meeting on electricity.
Fireworks had been predicted for today's meeting with more than 20 MPs furious with Mr Iemma's defiance of a party vote at the weekend's state Labor conference.
But the Premier emerged unscathed, saying there was no motion in Caucus for another vote on privatisation."
The question now is how with the ALP Administrative Committee and Unions NSW deal with the Iemma/Costa defiance of Conference?