Thursday, February 18, 1999
More working but for less pay: Reith outlines his plan to slash dole queue
By MICHELLE GRATTAN and MARK METHERELL
The Minister for Employment, Mr Reith, wants to slash unemployment with
drastic new workplace reforms - including watering down minimum wages, more
work-for-the-dole schemes and US-inspired tax credits to make low-paid work
more attractive than welfare.
Mr Reith prepared the secret options for the Prime Minister, who asked for
further work by February 15. But Mr Howard warned the options developed
must not breach the Government's commitment that existing workers not be
left worse off.
Mr Reith was forced to release his Cabinet-in-confidence paper last night
after a draft was made public by the Opposition employment spokesman, Mr
Martin Ferguson.
The Reith manifesto would take labour market deregulation substantially
further.
Among the proposals are:
Introduction of an earned income tax credit, costing about $460 million and
giving about $10 a week to low-income families with children to encourage
those on welfare to get jobs.
Establishing a single benchmark award that ensures current workplace
agreements don't leave workers worse off.
Toughening the Government's "mutual obligation" policy to extend to all
adults once they have been on the dole six months. This would mean
"continued receipt of allowance could be conditional on the recipient being
engaged in useful education activity, community service or other productive
workplace activity".
Separate conditions for the employment of unemployed people, including
special minimum conditions and exemption from unfair dismissal laws, and
lower award conditions for depressed regions.
Changes in the conduct of living wage cases and new provisions to require
the Industrial Relations Commission to take more account of unemployment in
making its decisions.
Mr Reith raised the idea of discounted wages for the longterm unemployed to
encourage employers to hire these workers. But he said this would be
expensive to implement.He said the Government should pursue Senate reform
because without it, it would not be able to put its jobs strategy in place.
"Linking Senate reform to fixing unemployment may be a sensible agenda
leading up to a third term ... What we are really talking about here is a
third term agenda we are announcing now so we can secure a mandate."
Mr Ferguson, who released the plan before Mr Reith, said the minister was
"hellbent on attacking the most vulnerable sections of our society".
In his paper, Mr Reith said that with very low inflation now established,
Australia should be seeing a commensurate winding back of wage expectations.
"Of growing concern in this context is that the Australian Industrial
Relations Commission has granted relatively generous safety net increases,
particularly in its last decision."
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Alister Air | The problem is, of course, that
Faculty Computing Manager (HSS) | not only is economics bankrupt
Information Technology Division | but it has always been nothing
University of Technology Sydney | more than politics in disguise.
Ph: 9514 1277 Fx: 9514 1595 | Hazel Henderson
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