"I think it is just stupid economics for a government to approach economic management from a strand of thinking regarding unions as enemies"

Bob Hawke’s statement challenges the adversarial stance some governments take toward unions, pointing out the limitations and dangers of a policy framework that frames unions solely as antagonists in economic discourse. Treating unions as enemies not only disregards their legitimate role in representing workers’ interests but also impoverishes democratic economic dialogue. Unions historically act as a counterbalance to concentrated economic power and provide a structured way for workers to engage in collective bargaining, advocating for fair wages, safe working conditions, and broader social protections. When governments undermine or marginalize unions, they risk destabilizing the equilibrium necessary for healthy and inclusive economic growth.

Hawke’s use of the phrase “stupid economics” highlights the shortsightedness of a strategy that seeks to weaken or bypass unions in the name of efficiency or competitiveness. Such an approach tends to ignore the complexities of labor relations and fails to recognize the potential for cooperation between employers, employees, and the state. By engaging constructively with unions, governments can promote social cohesion, minimize industrial conflict, and facilitate reforms that benefit the broader community. Conversely, antagonism leads to distrust, erodes the legitimacy of institutions, and may spur strikes, disruptions, and a decline in workforce morale.

Furthermore, Hawke’s perspective reflects a pragmatic understanding developed during his tenure as both a union leader and Prime Minister. He observed firsthand the gains made when labor, business, and government worked collaboratively, as during the Prices and Incomes Accord of the 1980s. Hawke’s assertion underscores the belief that economic management is most effective when it is inclusive, recognizing unions as partners rather than obstacles. Pursuing policies that foster mutual respect and negotiation aligns not only with the principles of democracy but also with achieving sustainable economic outcomes. The exclusion of unions from policymaking denies governments valuable insight and cooperation, resulting ultimately in policy failure and social division.