Aussie wages higher because of strong collective bargaining
Sunday 6 October, 2013
Australian Union
Leader suggests Aussie wages higher because of strong
collective bargaining
Australia’s
industrial relations framework is one of the keys to its
‘decent’ wage levels, according to ACTU President Ged
Kearney.
Speaking on TVNZ’s Q+A this morning she
said Australia did not go down the path of New Zealand’s
Employment Contracts Act in the 1990s.
“We still
have a very strong collective bargaining system here in
Australia,” she said.
“We don’t rely
terribly much on individual contracts. We have a framework
that allows unions to actually organise and get their works
better pay rises. We have a very strong minimum-wage case
that we run every year, and, of course, we have our award
system, which have stayed pretty much intact.”
Ms
Kearney said collective bargaining is the way “workers get
a premium on their wages, and one collectively bargains with
the help and assistance of organised labour through
Unions..”
Australia’s robust mining
industry was helping the country’s strong economy, she
said, while the manufacturing sector was ‘weakening
somewhat’ influenced by the Australian dollar and the
global economy.
The ACTU is concerned that the new
government of Tony Abbott will move the country to an
individual contract style of employment arrangements, Ms
Kearney said.
“We are very concerned about the
direction he is taking with respect to enabling trade unions
to organise and collectively bargain. We are concerned about
a number of things within the industrial relations framework
with an Abbott Government that will drive wages down and
cause concerns for workers in
Australia.”
Australian trade unions are
campaigning to combat the trend of employing workers as
casuals or contractors, now comprising 40% of the
workforce.
“This is a big concern for
productivity,” Ms Kearney said. “It’s a concern for
the standard of living that we have in Australia. It’s a
big concern for the coherence of our communities and our
family units. People employed in casual jobs, they can’t
get home loans, they can’t get car loans, they can’t get
paid holidays, paid sick leave, paid carers
leave.
“All those things that we enjoy as
permanent employees are swept out from under us when we’re
employed in insecure work.”
Q+A,
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Q+A
SUSAN
WOOD INTERVIEWS GED
KEARNEY
SUSAN
WOOD
A very good morning to you.
GED KEARNEY -
President, Australian
CTU
Good morning. Thanks for having
me.
SUSAN Why,
simply put, are Australians paid so much more - on average
25 per cent - than New
Zealanders?
GED
Oh, well, I think you have to look at this through
a historical perspective. Way back in the ‘90s, of course,
NZ had the Employment Contracts Act which radically changed
the industrial relations framework, I guess, for workers in
NZ. In Australia, we didn’t go down that pathway so much.
We still have a very strong collective bargaining system
here in Australia. We don’t rely terribly much on
individual contracts. We have a framework that allows unions
to actually organise and get their workers better pay rises.
We have a very strong minimum-wage case that we run every
year, and, of course, we have our award system, which have
stayed pretty much intact. You will recall that during the
Howard years there was an attempt to break down our system,
much like what happened in NZ in the early ‘90s, but that
was swiftly rejected when he was unelected through the
unions campaign, Your Rights At Work Campaign here. So
whilst we are seeing the
advent-
SUSAN
So are you saying that NZ needs to move back into a
unionised workforce to get any real wage gains? Is that what
you’re
saying?
GED
Uh, look, I think that you need to look at how
wages are established in NZ, and I think unions are a very
important part of that. Collective bargaining really is the
way that workers get a premium on their wages, and one
collectively bargains with the help and assistance of
organised labour through unions, absolutely.
SUSAN
Productivity, we are told, is a big issue, and we
are told that Australia has leapt ahead in terms of
productivity. How has the Australian workforce achieved
that?
GED
Well, you know, again, I think it’s through the
bargaining process. I mean, we are very lucky in Australia.
We have robust industries. We have the mining industry, of
course, which is helping our economy. We have a history of a
strong manufacturing sector, which is weakening somewhat now
with the Australian dollar and the global economy. All these
things contribute to the decent wages that we do have here
and our strong economy. But productivity, I think, is
something that often gets confused with profits. I was
listening to the conversation before about paying people
decent wages and investing in your workforce, investing in
skills, making sure you have a loyal workforce underneath
you that raises productivity. But it is a complex question,
that of productivity, but I think paying decent wages is an
important part of
that.
SUSAN
You have got a big campaign, the Australian Trade
Unions, on casualisation at the moment. How concerned are
you about it? I mean, why is it an issue
anyway?
GED
Well, it is an issue for those very things that we
have been talking about, because, as we heard with the
discussion before, and I honestly believe that a secure
workforce that feels invested in, that feels well-paid, that
feels secure automatically raises productivity. What we’re
seeing in Australian, though, is a shift to an insecure
workforce. Nearly 40 per cent of our workforce is employed
in casual, as casuals, in short-term contracts, in what we
call sham contracts where they’re forced to become
so-called independent contractors rather than employees.
This is a big concern for productivity. It’s a concern for
the standard of living that we have in Australia. It’s a
big concern for the coherence of our communities and our
family units. People employed in casual jobs, they can’t
get home loans, they can’t get car loans, they can’t get
paid holidays, paid sick leave, paid carers leave. All those
things that we enjoy as permanent employees are swept out
from under us when we’re employed in insecure work, and
that causes not only a breakdown of the economy and
productivity problems, I think it also causes a lack of
cohesion in our communities. So Australian unions are very
worried about this, and we are running a very strong
campaign to combat this
problem.
SUSAN
Speaking of insecurity, there are many New
Zealanders- [LINK BREAKS] We seem to have lost our link to
Australia. Well, look at that. She’s gone. I was about to
ask her the hard question about 200,000 New Zealanders
living in Australia and not being looked after, and she just
disappeared. I don’t think I can probably hold her
responsible for that, though.
*****************
SUSAN
We’ve got the satellite back up, so let’s get
back to Ged Kearney. I’m sorry about that, Ged. I was
assured we are paying the bills at this end, so something
went wrong. What I was about to ask you was there are many
New Zealanders living in Australia who do not have the
protections, they are not citizens, they do not have the
protections of other workers. The Prime Minister told me
this week it’s about 200,000. How is that fair when these
people, these New Zealanders, are working, living and paying
taxes in
Australia?
GED
Yes, it’s a good question. I will come to that in
a second. But I would just quickly like to address one of
the comments that your panellists said - because I could
hear while I was here, we still had the link - about capital
is the reason that we have productivity. In fact, it’s
quite the opposite. The main drag on productivity in
Australia was actually due to capital. At the moment, labour
productivity in Australia is the highest it’s been since
the 1960s. Labour unit costs are actually the lowest
they’ve been since the 1960s, and the drag that was
actually bringing our productivity growth - because we’re
still growing - was actually a massive capital investment in
huge mining products that were yet to come online and
actually be productive. So I just wanted to fix
that.
SUSAN
Ok. Now on to the New Zealanders in
Australia.
GED
On to the NZ ones, yes. Look, absolutely.
Australian unions have long been very concerned about, I
guess, guest workers, you could call them, in Australia and
the fact that they can be vulnerable, they can be exploited,
that they have hanging over their heads like a sickle the
fact that they can have their job taken away from them and
then have nothing because they have no rights, they have no
access to anything
here.
SUSAN We
would not regard ourselves as guest workers in Australia,
New Zealanders, though. I think, certainly from our
perspective, feel we have a very special relationship with
you. I’m talking about people who are maybe there a decade
or more. Their children don’t get the same benefits as
other children. Is it something that you would look at
campaigning on, or do you just lump the New Zealanders
together with other ‘guest
workers’?
GED
Uh, well, there are certainly a large number of New
Zealanders working in Australia. We know, and I think it’s
interesting that you’re having this discussion, because
you need to ask why. Why is that so? And I think a lot of it
is because of the conversation you’ve been having earlier
with your other panellists about the low wage in NZ and
perhaps lagging productivity, and perhaps industry needs to
be built up, skills need to be invested in, etc. But
certainly what we would like to see in Australia is at least
access to health care. We think that that is very important,
and there is certainly an argument if you do lose your job
that you can get some relief or some welfare payments while
you’re here. I think it is a very complex problem. We have
a softening labour market in Australia. We have some 60,000
workers out of work here, so it is complex, and I think what
we need is a very mature conversation between the NZ
Government and the Australian Government about how we can
support NZ workers here together in a good comprise in a way
that actually makes sure people are cared
for.
SUSAN
Sure. I just need to jump in because I know we’re
about to run out of satellite again. I want to ask you what
are you expecting from Tony Abbott? Go
fast.
GED
Ok. We are expecting workers to have some concerns
with the Tony Abbott Government. We know that he is
committed to moving us back to an individual contract style
of employment arrangements. We know that there’s no
commitment to very important institutions like penalty
rates. We are very concerned about the direction he is
taking with respect to enabling trade unions to organise and
collectively bargain. We are concerned about a number of
things within the industrial relations framework with an
Abbott Government that will drive wages down and cause
concerns for workers in Australia. But we are prepared to
work with the coalition to make sure that these things
don’t happen and that there are solutions to the things
that he has concerns about as
well.
SUSAN
Ged Kearney, thank you so much for your time this
morning and for being such a great
sport.
GED
My pleasure. Sorry about the link. It’s our
fault.
SUSAN
Not your personal fault, that’s for
sure.
ENDS