Take a pay rise, but at what cost.

The recent wage case for low-income earners may well be the ‘straw that breaks the camels back’

With big business confidence at it’s lowest, coupled with recent slumps in retail sales and increased interest rates, business may well view this as a reason to pull back and cut staff rather than continue to suffer while trying to save jobs.

Jobs are often created through the success of business branching out and or expanding or taking on additional work that often involves the borrowing of large sums in order to accommodate demands.

A large part of planning for such an expansion is costs, both fixed (interest on borrowings) and employee expenses.

You see interest rates for business is often higher than residential and, with millions at stake these rate increases can chop 100’s of thousands off the bottom line. A wage rise now may well be something that triggers a change of direction from an already struggling sector.

So I urge the powers to be to consider the possible ‘re-action’ to their ‘actions’ if they approve such an increase.

The employees may not like the possible consequences.

continued
Most of you by now are aware that I am an employer and I can assure you that I have no employees who are on the 'minimum wage' for 'low paid workers. They all receive industry award rates, or higher.

I remain neutral.

Interesting, proof however you and I do not for a second think alike.
Those who get the minimum wage are not trade unionists, very few in fact can afford union fees on those pay rates.
The ACTU has fought for minimum standards of income for a very long time.
These people are not share holders maybe not home owners ,surely not well of minimum wages is not the comfort zone.
Can it be you say the already poor should shoulder the load of the Rich's debts?
That inflation because some are earning and spending bigger salary's than ever before is evidence we should hurt the poor?
It is true that a wage surge would increase inflation, rise interest rates and damage this country.
I a proud trade unionist think we can take this chance to increase minimum wages and control inflation.
My preference is for bigger superannuation payments , for other workers as part of wage increases.
That can and will in time fund internal loans not imported debt as those funds continue to grow.
I have never been a tax the rich person but with true respect rehctub I do not think you have thought this out.
It hurts the low paid to reward the better of.

Belly, some interesting points. On the one hand you say the poor can’t afford union fees yet you defend the poor. I thought the union movement was all about supporting its members.

Can it be you say the already poor should shoulder the load of the Rich's debts?

Now this can be turned around to say that the rich subsidise the poor with subsidies for housing, health ,medical bills and family assistance. The rich pay higher taxes and levies often for the betterment of the poor. You see the rich make maximum contributions through taxes, levies and such while at times not receiving a single cent in support. They have children to you know!

It is true that a wage surge would increase inflation, rise interest rates and damage this country.
Scary stuff hey, but do you really think it is worth the gamble. Why not increase taxes on grog, tobacco and gambling as a deterrent, still will have the same effect, more money to spend on essentials. It is a well-documented fact that there is often a link between the poor and these life style choices. A high percentage of welfare goes down the proverbial toilet! Improved spending habits would lead to improved living standards!

It hurts the low paid to reward the better of.
Just to clear the air, I am not in favour of any tax cuts for anybody. Put the money into better infrastructure. Water, roads, public transport to name just a few.

Interesting you mention superannuation levies.

You see I am in favour of increasing the super contribution to say 12%. BUT, on a dollar for dollar basis against what the employee contributes. I don’t even mind if they set a safety net of say 5%.

You see many people have a false sense of security that 9% of their income will provide financial independence at retirement. Not even close unless you are 16 and work continuously till the age of 65. Even then you may struggle!

Good talking to you, I appreciate posters that don’t have to use personal attacks to get noticed.

I think its fair to say we have seen enough already of how The government intend to balance the books.

So far Rudds crew have wanted to get rid of the people who care for the ill elderly and disabled by removing the person who cares for them the four cents and hour allowed which is a total discrace.

Then they came up with the idea to force neighbours to spy on others in their streets who were on a pension.
What a discusting lot of people behind this lovely country.

However the best one of all is by there intention to not only give a baby bounus which encourages girls as young as forteen fifteen to have kids but hes going to increase it.

I am just wondering how anybody could think we wont see far more hikes in interest rates.

The fact is unless the Government act the banks will have to to try and at least hold back the depression that these country is heading for in the long term.

I think the people might wake up quicly and vote this Government out next term but If they dont then all I can say is God Help this country in ten years time.

You voted for them now you have them - hopeles

Gday rehctub I like talking to you too for the same reasons, my post was in print while you posted your second one.
So I missed your disclaimer, unions? well I can only speak for myself but hold forever these views.
A handful not every union person, understand the roots of the movement in harder times than today came from a commitment to fairness for workers.
No self praise but true I grew up hungry, one of 16 Fed by a dads single income.
Would you if your income was take home under $500 a week pay near one weeks pay a year to be in a union? could you?
Superannuation, yes but not 12% I pay a third more than my boss , and 15% should be law.
Why should those who can afford it not provide for their own retirement?
If however the low income earners do not get an increase , my wish is $20, we will still have inflation.
Those who are unionist will still get pay rises via EBA or whatever is in place.
Increase employer contribution to super to 12% and in future wage rises pay employee contributions instead of high wage rises.
Some fell behind under workchoices so why not in the next round an extra part of that rise go to both employer and employee superannuation?
And bloke do not tell me about how much we already help the poor if we are giving the right help why are we failing to make progress?
A job education and accountability are the best help, some will not help them selves but that is another story.