The death rattle of a WorkChoices goblin
The so-called “Fair” Pay Commission yesterday delivered a pay cut to Australia’s lowest-paid workers. Despite submissions in favour of a rise from the Government (“a considered rise”), the union movement ($21 per week) and the bosses’ lobby ($8 per week), this was the result that everyone expected.
After all, the new wage-setting body was set up by the Howard Government with precisely this goal in mind. The requirement for “fairness” was removed from the legislation even while the word “fair” was added to the body’s title.
During the boom, the Commission cut wages; during the downturn it’s cutting them again. In fact, as Frank Quinlan explains, no matter what happens in the economy, the Commission cites it as evidence for cutting wages:
On the one hand they have argued that when there is inflationary pressure, low paid workers wages need to be controlled… On the other hand they have argued that when there is recessionary pressure, low paid workers wages need to be controlled. So it is very difficult for me to understand the circumstances under which this Fair Pay Commission would actually deem it fair to increase low paid workers wages.
This time, the Commission said changes to the tax and transfer system justified its decision. It looked at the tax cuts and stimulus money directed towards low-income earners, thought to itself, “Your boss needs that more than you do,” and passed the money up the line. Trickle up economics. And all because it is ideologically opposed to the Government’s successful response to the global downturn.
Fortunately, this is the last determination the Commission will make. The death rattle of a WorkChoices goblin.