Unions defy Kevin Rudd on wage claim restraints

I am absolutely flabbergasted, isn't it no wonder that Unions in Australia are so out of touch that they do not know how to tamper their demands. Isn't it no wonder that from previous history it was because of Unions that cause the Australian Economic Crisis in the past by their exorbitant wage demands ?

"If you don't protect incomes, then that's a negative for the economy as well," Ms Burrow said. "If working people can't pay their bills, if, in fact, their mortgage is threatened ... then that's not going to help the economy survive, nor indeed recover.

Judging from the comments, i would assume Ms Burrows never study economics. Wages should be reflective of demands not the other way round. The crazy thing is Ms Burrows keep forgetting that if company collapse then the people who suffer is the same people who the union try to help. All i can say is the presence of Union thuggery and Union influence often artificial inflate the economy and send a false demand.

Personally, If they are truly underpaid i can understand. BUT they are already earning 100K a year working a 36 hours week. If they can't pay their mortgage something must be wrong. I would suggest instead of increase wages they should go for financial planning seminar. Is 100K sound abit overboard in the first place.

Well what the point of going to university and spend years to learn specialize skills when a joe blow down the street could earn twice your salary for doing nothing more than using muscle power and working less hours ??? No logic but i suppose when Unions are strong this is what happens

People argue they go to apprenticeship and get their ticket. But for argument sake I get 10 Scientist and Doctors and 10 Painters or Scaffolding and get them to swap jobs... I bet i can get the 10 scientist and Doctors to perform the same task in 1 months of intensive training but I can almost guarantee it would not be true the other way. SO THEN WHAT IS THE ECONOMICS OF 100K a yr ??? Most GP dont earn as much and have to work longer hours.

All i can say is Union should go back to their original purpose. If you read the history of unions they were meant to protect workers not destroy the economy. They should allow the free market to dictate the wage and not try and artificially inflate wages, but protect the workers when company do not play by the rules.


Unions defy Kevin Rudd on wage claim restraints


Patricia Karvelas, Political correspondent | January 09, 2009
Article from: The Australian

THE union movement is defying a request from the Rudd Government to show restraint on pay claims during the financial crisis to protect jobs, instead vowing to push ahead with ambitious demands for higher wages.

The peak body representing trade unions, the ACTU, has backed the Construction Forestry Mining and Energy Union, which is asking aluminium giant Alcoa to strike a deal giving power plant workers at its West Australian operations an immediate pay rise of up to 33 per cent.

ACTU president Sharan Burrow yesterday defended the CFMEU, arguing that the claim amounted to annual pay rises of between 5 per cent and 10 per cent over several years.

"If you don't protect incomes, then that's a negative for the economy as well," Ms Burrow said. "If working people can't pay their bills, if, in fact, their mortgage is threatened ... then that's not going to help the economy survive, nor indeed recover."

Acting Prime Minister and Employment Minister Julia Gillard said employers and workers had to show restraint.

"Our message to everybody - to unions, to employers - is these are difficult times," she said.

"After the global financial crisis, our economy is not going to be untouched and the most important thing is to make sure that Australians are still in work. In the short term, of course, our priority is maintenance, and protection, of jobs."

Ms Gillard made a pointed comment about the mining industry, arguing that the boom of the past decade was over.

"We know the mining industry is going to be facing a different era to the one it's been in, with prices for commodities coming down," she said. "So all of that has to be weighed in the balance. Simple message: think about jobs first."

Australian Industry Group chief executive Heather Ridout also said unions should be thinking about jobs first.

She said Australia had had a lot of wage discipline during a stable period.

"We've had areas where wage increases have been very high and very generous but that hasn't flowed across the economy," Ms Ridout said.

"But in recent times we've seen an increase in industrial disputes and this new claim on Alcoa, which is totally at odds with where Alcoa was going putting off people.

"This plant is already made up of people already receiving high wage increases and enjoying very favourable working conditions. So these are worrying signs, and we have to be right on this through this bargaining round this year because it won't be about high interest rates, it will be about high unemployment."

CFMEU national president Tony Maher said it was standard for workers to receive rises of 5per cent annually, and up to 10per cent in boom times.

"The union always takes into account economic circumstances," Mr Maher said.

"Right at the moment, we're pushing for job security more than anything else."