Industrial Relations

The Federal Government is defending its industrial relations (IR) laws after the Australian Industrial Relations Commission found in a landmark ruling that a worker was sacked legally after 19 years' service.

Large businesses are exempt from unfair dismissal regulations under the laws if they fire an employee for "genuine operational reasons".

The full bench of the commission yesterday delivered a liberal interpretation of exactly what that means.

It found it was legal for cinema giant Village Roadshow to sack Warren Carter, the general manager of a Melbourne cinema complex, because the complex was being demolished.

Test of Canberra's power

The High Court has found in favour of the Federal Government's Industrial Relations Laws rejecting State claims the laws are unconstitutional

States and unions had asked the court to rule the new national industrial relations laws invalid, because they were set up under the corporations power in the Constitution.

The High Court by a 5-2 majority dismissed the challenge.

Two dissenting judgments came from Justices Michael Kirby and Susan Crennan.

In a short statement to the court, Justice Kirby said Work Choices should be declared completely invalid.

The States argued the Constitution restricts the Commonwealth powers over industrial relations to disputes across state borders.

"This removes the one potential cloud over the legislation and it means that Australia at long last, in 2006, has a national system of industrial relations laws,'' Mr Howard told reporters in Sydney.