The Forum > Article Comments > The benefits of a freer labour market > Comments
The benefits of a freer labour market : Comments
By Richard Blandy, published 3/11/2005Richard Blandy argues the new IR reforms will make a good contribution to the long run welfare of the Australian people.
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In Malaysia, the government grants foreign companies 'MSC' status, and provides free office space, staff paid for by the government, and opportunities for innovation that Australia cannot offer.
If it is more profitable and the risk is reduced, companies will do it. People forget that for $12,000 a month spent in Malaysia I run 24 staff, yet here i would get perhaps 2 when expenses are counted. This does not mean I am taking anything away from Australia, in fact, I am creating more for Australia by doing this. The production generated from the Malaysian office means that I can afford to support a further 5 skilled workers back here in Australia, so in reality if i did not have this, the value of my business for Australia is reduced as i have less profits, and less staff back here in Australia.
But all this is doing is keeping that country's employment and pay conditions low, as when costs increase to a certain point, eg wages etc, we will then pull the pin and relocate to the next strategic location. But when this pressure occurs, this country will have achieved its goal as it will have used its resources to be brought into the developed world
Aussie workers, blah blah blah. I want to keep jobs in Australia like everyone else, but not when you are paying exorbidant prices for unskilled labourers. Let us become a skilled society, the baby boomers have forced this on us, and leverage off other nations who share different demographics. Let the developing nations be the labour force in the 21st century if it is going to assist that country in developing to our level. How else can these countries apart from foreign investment develop infrastructure and create employment when they have significant micro issues.
I do not support IR changes, even though as an employer it is to my benefit. The end of the day, we do not want to compete with the rest of the world in unskilled labour as we will end up degradating Australian lifestyles.