Prime Minister Tony Abbott says union leader Paul Howes has delivered a "powerful assault" on federal Labor's campaign over industrial relations.

The Australian Workers Union national secretary yesterday called for a new "grand compact" between unions and business, saying the current industrial relations system was "dragging us down" and had become a "bloodsport".

Mr Howes also suggested Labor MPs should stop warning of a return to Workchoices under the Coalition.

He said unions needed to concede "there has been a pattern of unsustainable growth in wages in some isolated parts of the economy".

Mr Abbott has seized on the statement as a strong rebuke of the Opposition Leader.

"I certainly think he's pulled the rug out from underneath Bill Shorten's scare campaign," he told Fairfax Radio.

"That was a very powerful assault on everything Bill Shorten's been doing for the past few months."

But Mr Shorten has denied that the union leader's statements are a blow to his own political tactics.

He sought to continue his attack on the Coalition over its refusal to give financial help to troubled fruit processor SPC Ardmona.

"I've been disappointed by the Prime Minister's attack on fruit cannery workers, y'know saying that they're getting over-paid when they're on $50,000 a year," he said.

But both leaders have agreed Mr Howes' idea of a new accord on industrial relations is not realistic.

Mr Shorten said he was in favour of a consensus approach but that, under Tony Abbott, any official agreement on IR was a "fantasy".

"I think it's great to have consensus in workplace relations - that's what I've done for 25 years," he told RN Breakfast.

http://www.abc.net.au/news/2014-02-06/abbott-on-howes-speech/5242520

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Both Paul Howes and Tony Abbott are living in fantasy land. But there you are in your sweat-shop and wondering why people think you're being paid too much... especially when you are a casual, with no job security, no holiday pay nor any other benefits like super... Should you be a full time employee, there is a 99 per cent chance that you would be asked to do "a bit" of overtime for no pay, as part of your "goodwill" ...

Prominent union boss Paul Howes is reported to be on the verge of quitting his job as national secretary of the Australian Workers Union.

Mr Howes has not responded to calls from the ABC following a report published in the Financial Review saying he will stand down today.

A friend of Mr Howes, who did not want to be named, told the ABC it has long been the union leader's intention to go into the corporate sector before seeking any political career because it would enable him to eventually present himself as a consensus candidate to the public, with experience on both sides.

Some in Labor believe Mr Howes, who turns 33 this year, could one day lead the party.

But recent speeches, including this year's address to the National Press Club where he called for a new bargain between workers and employers, have left him ostracised from parts of the movement who disagree.

Mr Howes shot to prominence when he went on Lateline on the night Kevin Rudd was deposed as prime minister and publicly backed his removal from the Labor leadership – something he has since admitted to regretting.

Mr Howes published a book of his account of the 2010 election campaign called Confessions of a Faceless Man – a play on the nickname the Liberals awarded to him and other factional bosses instrumental in replacing Mr Rudd.

http://www.abc.net.au/news/2014-03-24/paul-howes-tipped-to-quit-as-awu-national-secretary/5340028

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