Labor and the Unions gain the ascendancy just as the arse falls out of the economy.
I think people will be very happy to actually have a job.
33% pay rises in this environment are ridiculous.
10% or even 5% pay rises are ridiculous.
Maybe 10% wage cuts could save jobs.
Who would actually take a pay cut to save the economy?
Can we actually afford to take pay cuts?
Would you rather have your job at 80% of your current wage,than not have a job at all?
from the Weekend Australian...
Rudd Government better off taking hard decisions now
Either way, the labour market is in for a shake-up in the next few months, which increases the importance of the Government continuing, if not expanding, its current reform agenda.
The Government has put the final touches to its industrial relations Fair Work Bill, with some suggesting the centre of power will rest too strongly with the unions.
This could be dangerous, but the Government's approach to handling the unions so far has been positive.
There is a threat, though, as wage claim negotiations start, and already there are signs of particular concern.
Even though mining jobs are being slashed around the world as global demand wanes, some workers at Alcoa are pushing for a 33 per cent wage increase.
Their union, the CFMEU, dismisses the headline figure as a "beat-up" (the usual response) and says the actual claim is between 5 per cent and 10 per cent delivered over several years.
Either way, in the current economic climate a claim of that size is over the top, and surely the mining workers would be more concerned about keeping their jobs than topping up already sizeable pay packets.
