Unions are cautiously welcoming Prime Minister Malcolm Turnbull's olive branch on workplace relations reform, agreeing with business that Australia needs to "keep up" with other countries in an increasingly global market.

Mr Turnbull left the door open for potential changes to the government's policy agenda on Monday night, saying it was important to "explore ways in which we can achieve more flexibility, higher levels of employment, higher levels of business activity, and do so in a way that reassures Australians, Australian workers in particular, that this is not threatening their conditions".

President of ACTU, Dave Oliver. Credit:Dominic Lorrimer

Mr Turnbull told the ABC's 7.30 program his government's challenge was to move away from the ideological battle between businesses and unions that plagued debate in industrial relations and "not to wage war with unions or the workers that they seek to represent, but really to explain what the challenges are and then lay out some reform options".



Union and business representatives have viewed the comments and the appointment of new employment minister Senator Michaelia Cash as an opportunity to renew their respective suggestions for reform.