Union boss Paul Howes has lamented the latest row over workplace entitlements, saying public debates over the issue have become "industrial warfare" and that the "blood sport" has to end.

Mr Howes, the AWU national secretary, used a National Press Club address to call for a post-Accord "grand compact" in which unions and business will agree on enduring compromises to establish a long-term industrial relations framework.

It comes after the Government told the Fair Work Commission (FWC) that it should consider whether minimum terms and conditions, protected by modern awards, are still necessary in today's workplaces.

The Coalition's request has raised the hackles of the Opposition, who say the Government is breaking a pre-election promise not to return to WorkChoices.

But Mr Howes mocked his own side's tendency to evoke WorkChoices every time the Coalition proposed changes to workplace relations, saying the Fair Work Act introduced by the former Labor government needed genuine support from business if it was to last.

"We must draw the key industrial players together to find a new form of stability," Mr Howes said.

"A grand compact is not just possible, it's desperately needed.

The Prices and Incomes Accord Original accord agreed to by the ACTU and the Labor government of Bob Hawke in 1983.

Original accord agreed to by the ACTU and the Labor government of Bob Hawke in 1983. There were several accords throughout the 80s and early 90s.

There were several accords throughout the 80s and early 90s. Howes is calling for a "grand compact" that would bring key industrial players together to provide stability.

Howes is calling for a "grand compact" that would bring key industrial players together to provide stability. He says the same spirit of the 80s accords can be invoked.

He says the same spirit of the 80s accords can be invoked. The Australian Industry Group says there is no need for formal compact, but discussions are good.

"A grand compact in which business, unions and government all work out a deal that we all agree to live with for the long haul."

Mr Howes agreed with the Coalition that there had been "unsustainable growth in wages" in some parts of the economy, but said in other areas wages growth had been declining.

He said business and unions would need to make significant concessions if a grand compact was to be achieved.

"Business could concede that ... industrial disputation is at record lows," he said.

"Perhaps they might agree ... penalty rates and the minimum wage are fundamental planks of our social contract and should remain."

Assistant Treasurer Arthur Sinodinos says he wants cooperation but believes a grand compact is not viable.

The Australian Industry Group, too, says there is no need for a formal compact, but that it is always a good time for unions, government and business to talk.

Abbott distances himself from penalty rate review

Meanwhile, Prime Minister Tony Abbott has sought to distance himself from the Coalition's request for penalty rates to be reviewed, saying any changes to workers' conditions are a matter for the independent umpire, the FWC.

The FWC has begun its major review into the 122 awards that cover most employees, except those bound by agreements.

In his submission, Workplace Minister Eric Abetz, who has warned employers they risk a "wages explosion" unless they start denying workers pay rises, is also encouraging the FWC to take labour costs and their impact on hiring into account.

ACTU president Ged Kearney says the Liberal Party's true agenda has been exposed and has rejected any suggestion penalty rates are antiquated in today's 24/7 economy.

"They are fair compensation for working very unsociable hours. Whatever this Government says, we still do value our weekends in Australia," she said.

"We know that so many people rely on penalty rates just to make ends meet."

The Prime Minister agreed with Ms Kearney, saying penalty rates are important to workers and especially to those who are low paid.

"If you're a low-paid worker, one of the things that you often love to do is work late nights, weekends, because it does substantially increase your income," Mr Abbott said.

He rejected the claim his Government's submission was proof he wanted to see workers' wages cut, saying the FWC would be the ultimate umpire on the question.

"Wage rates, penalty rates - all of the conditions of employment under awards - are a matter for the Fair Work Commission. That's the case now, that was the case before the election, and that will continue to be the case."

Shorten says Coalition breaking election promise

The Opposition says the Government is breaking another pre-election promise by urging the FWC to examine the merits of penalty rates.

"The Abbott Government's got form," Opposition Leader Bill Shorten said.

"Before the election they said there was no way they would go back to WorkChoices - it was dead, buried and cremated.

"Now what we're seeing the Abbott Government doing (is) opening up the Pandora's box of let's cut worker conditions."