The states are expected to resist the push by the Federal Government to take over industrial relations, while the unions have complained that too few details have emerged to date on the shape of the proposed system. However, ACTU secretary Jeff Lawrence said a national system could still be delivered within the framework of the government’s existing Forward with Fairness policy.

Telstra is trying to leave two-thirds of its workforce on Australian Workplace Agreements indefinitely. If successful, thousands of the telco’s employees will be employed under John Howard’s individual contract regime well into a second term of the Rudd government - and beyond.