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The Forum > Article Comments > IR reform - these are not radical changes > Comments

IR reform - these are not radical changes : Comments

By Mike Nahan, published 12/10/2005

Mike Nahan argues the industrial relations reforms are not radical but aim to accommodate changes in society.

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Dear Suki
yes, all of us would like a bit more than a roof and allowance for munchies. No argument.

The problem is... reality.

I point to other places, to illustrate just how good we have it here, and how silly we are to whine about how 'tough' it is.

Our abundance and quality of life, is based on certain economic foundations, which were (and to a degree are) tied to the British Empire/Commonwealth, and the various connections etc.

I don't know where any of us who 'desire' abit more than a roof etc think it is coming from. It sure isn't going to fall out of the sky :)

I truly believe we need to think carefully in our own minds about where our current prosperity came from, and on what it currently depends, then identify threats, and take action accordingly (a S.W.A.T) That may involve some lateral thinking. Even zipping around some industrial areas and offering a grass cutting service which we could do on weekends. They would pay a LOT more than 'wages' for that.

Or maybe even doing house cleaning.. loads of that kind of work around. But to expect it to just 'be given' or 'happen' is a tad on the fantasy land side of things.

I continue to urge all of us to treasure extended family, and to keep our kinship networks strong, they are the best form of social welfare we can ever have, they probably actually care.

The ONLY possible direction industrial relations can go is 'longer hours, same pay, more work etc'. Think of this, most mass manufacturing is going now to China, as they improve their quality and skill base, we are losing ours, and parts are being outsourced.

IT skills, call centre work all being outsourced to Bangalore or Phillipines or Malaysia's CyberJaya Hi Tech growth corridore.

Customer support, even SALES are going to overseas, most public interface is trending to 'online' which lends itself to the above.
(Rang Citylink lately ? :)

We are now being consumed by the same economic principles which established us.
Posted by BOAZ_David, Saturday, 15 October 2005 9:04:26 PM
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A small point to consider when reading Nahan's article. The Institute of Public Affairs is a conservative thinktank, not the ideologically-neutral research institute that its name suggests. Follow the money, and you'll discover who's wagging the dog.
Posted by annieh, Monday, 17 October 2005 6:41:44 PM
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Terje,

You correctly liken the "work for the dole" program to a "government run slave program" and then imply that abolishing the minimum wage would end this exploitation by the government.

This is an interesting and unusual way to argue for reducing the conditions and pay of lower paid Australians

Even if we accept this argument, what sort of life can anyone hope to live on wages of less than $11 per hour?

These outcomes is certainly not we were told to expect at the outset of the experiment in neo-liberalism and globaliasation back in he early 1980's.

If this is the best we can hope for for a large proportion of the Australian workforce after more than 20 years of thes so-called 'reforms', then it is certainly time we questioned the assumptions of globalisation and neo-liberalism.
Posted by daggett, Monday, 17 October 2005 7:14:34 PM
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"Even if we accept this argument, what sort of life can anyone hope to live on wages of less than $11 per hour?"

That depends entirely on how many hours they work. If they work 10 hours a week, not much of a life. 50 hours, a fairly comfortable life, but probably without a plasma TV.

"If this is the best we can hope for for a large proportion of the Australian workforce after more than 20 years of thes so-called 'reforms'"

A tiny proportion of the Australian workforce receives the minimum wage, and Australia' minimum wage is already the 2nd highest among OECD countries as a percentage of the Average wage. (58% of the average wage, where 33% is more the norm.)

What proponents of the minimum wage don't realise is that it hurts the poor and unskilled most of all. The 2 million unemployed Australians are unemployed because of the minimum wage.

Their labour simply isn't worth $12 an hour, so instead they get nothing, even though a large percentage of them would happily work for less.

Hundreds of thousands of under-21 Australians work for less than the minimum wage and are happy to have the job. Adults are prevented by law from lowering their selling price this way.

If the minimum wage was halved tomorrow, millions of Australians would be better off, and that's an unarguable fact.
Posted by Yobbo, Tuesday, 18 October 2005 7:14:20 AM
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The most vulnerable in our society are young people who are about to join the work force.They have no bargaining power, no work skills and generally no idea of what career they want to follow. They are at the mercy of the prospective employer who essentially devalues their contribution to his/her wealth creation scheme.
Without enforceable regulation of pay and conditions,this country would very quickly revert to the laws of the jungle where only the skilled whose labour is in demand prosper.
The rest are remunerated in direct proportion to their ability to bargain. Unions are the means whereby workers collectively bargain so it is no mystery why the Howard Government seek to destroy the AIRC and replace it with their 'fair Pay'model.
They also seek to further shackle Unions who would stand in the way.
This attack on Workers Conditions heralds a surge in counter activity by organised labour so when the disruption to productivity affects the profitability of business you will know who to blame
Posted by maracas, Tuesday, 18 October 2005 9:17:53 AM
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Maracas - apart from guarantees they are receiving minimum conditions and pay, what do young people have to offer employers apart from their time.

Many school leavers are unskilled, have no experience and no qualifications. Would you pay someone in this situation $15 an hour when someone else is quite happy to work for the minimum. No you wouldn't.

A foot in the door is the most important thing for young people and once the employment cycle starts, they gain experience, knowledge, trust with their employer and skills which they can then use to negotiate better pay or move on to a better job.
You have to start somewhere.

I worked various jobs to put myself through university before becoming a journalist on a cadetship of about $23,000 per year. This is about $11.50 per hour, for a job which I had tertiary qualifications. It was still enough for my wife and child to live off, if we budgeted well. I gained experience and ended with more money after proving I could do the job.
$11 an hour and experience is better than no job and no experience.

The same thing happens to new businesses. I am sure all new owners would love to have the best staff working for them to get the best productivity, but unfortunately, if the business doesn't have the runs on the board they will find it hard to get the best people.

There is only one way to get experience and that is in a job.

t.u.s
Posted by the usual suspect, Tuesday, 18 October 2005 11:17:56 AM
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