Public Sector Wages

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Wage rises likely to be lower - ACTU

Wage rises for Australian working families are likely to be lower in the future under the Howard Government's new industrial relations changes a previously unreleased Treasury Report has revealed...

The report obtained under freedom of information laws show that the Federal Government's own Treasury Department believe that John Howard's industrial relations changes will mean that 'increases in minimum wages are likely to be lower' and that this will 'slow award wage growth and flow on' to other workers.

ACTU Secretary Greg Combet said:

"These documents prove that the Howard Government has known all along that its industrial relations changes would lead to lower wage rises, cuts in the take home pay of workers and more pressure on working families.

"The Treasury has also confirmed that there is no economic case or justification for the Government's new IR laws. The Treasury reports found:

That productivity is likely to be 'suppressed' by the Government's plans to push down award wages;
That there is no evidence that the Government's efforts to push more workers onto individual contracts will improve productivity because there is 'no clear difference in productivity gains between collective and individual agreements' and:
That Government claims that jobs growth will be boosted by IR changes are misleading because any employment gains would be 'not huge in the context of recent history'.

"There is no economic case for these IR laws. They are simply about Liberal Party ideology.

"Treasury has confirmed that John Howard's IR laws will lead to lower wages for Australian working families. They have also proven that the Government's claims that its IR laws will improve productivity and boost jobs growth are lies."

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

http://www.cpsu-spsf.asn.au/latest_news/public_sector_wages/20051220_treasury.html
Last Modified: 20 Dec 2005