General

Industrial Relations

New IR laws won't help economy

By ACTU Media Release Issued 3pm Monday 26 June 2006

The economic case for the Federal Government's new industrial relations laws is in tatters today following a report by leading economic forecaster BIS Shrapnel which says the new laws will do nothing to assist the growth of the Australian economy.

According to BIS Shrapnel's Economic Outlook bulletin the Government's failure to invest in skills training and public infrastructure is threatening to seriously constrain the future growth of the Australian economy and could lead to future interest rate raises.

The report is also critical of the Howard Government's new industrial relations laws saying they will do nothing to assist Australia's economic growth and suggesting that all the new laws will do is increase business profits at the expense of employees' wages and living standards.

In a media release issued earlier today BIS Shrapnel senior economist Mathew Hassan says:

"The policy problem for the Australian Government is that, to improve growth, the economy needs measures that improve labour productivity and increase the pool of skilled labour.

According to Mr Hassan [BIS Shrapnel senior economist], the Federal Government's latest WorkChoices legislation will do little to improve either and is deflecting the debate away from how to grow the pie bigger, to how best to cut it up.'

ACTU President Sharan Burrow said:

'This report confirms what the ACTU and unions have been arguing all along and leaves the Federal Government's argument that the new IR laws will help the Australian economy in tatters.

"The Howard Government's IR laws are taking Australia down the wrong path. For some years now the ACTU has been calling for increased Government and business investment in skills training, education and economic and social infrastructure.

These are the critical issues in the Australian economy that need to be addressed if we are to continue to improve our living standards and remain internationally competitive. That view has now been 100% supported by one of Australia's leading economic analysts BIS Shrapnel.

"The laws have nothing to do with helping the economy and everything to do with increasing big business profits at the expense of the job security, working conditions, wages and living standards of working families.

"The Government's own Office of the Employment Advocate has admitted that every new AWA individual contract it has registered since the Government's new IR laws came into affect have removed at least one award condition and that 64% of AWAs have removed workers' right to leave loading; 63% cut penalty rates and overtime; 52% cut shift loadings; 40% stripped away public holidays; and 16% removed ALL protected award conditions.

"None of this helps the economy, none of this builds the skills or infrastructure Australia needs to remain competitive, all it does is put downward pressure on the wages and conditions of working families many of who are already struggling to keep their heads above water," said Ms Burrow.

© 2001 Community & Public Sector Union - State Public Services Federation (CPSU-SPSF) - National Office

http://www.cpsu-spsf.asn.au/latest_news/general/20060627_noneconomy.html
Last Modified: 27 Jun 2006