New inquiry puts minimum wage in doubt
Australiaâs poorest workers may soon face big changes to pay rates and the way they get paid if a Productivity Commission inquiry decides that existing minimum standards are not in the communityâs interest.
Penalty rates and the future of the minimum wage have been spotlighted as key issues in the Productivity Commissionâs workplace relations inquiry.
⢠All workers must get super, government told
⢠Confidence drop: business expects âterribleâ year
The commission was asked by the Abbott government last year to assess the efficiency of Australiaâs workplace relations system with a view to recommending a list of policy changes before the end of the 2015.
The issues papers were accidentally published online on Thursday.
The review was meant to be published on the commissionâs website at midnight, but went live on the homepage on Thursday morning, and was eagerly set upon by at least two Labor MPs who tweeted a link to it and broke the embargo.
The Oppositionâs workplace relations spokesman Brendan OâConnor tweeted a link to the document this afternoon and posed the question: âIs this the starting point for Tony Abbottâs revival of WorkChoices?â
Is this the blue print for Tony Abbottâs revival of Workchoices? http://t.co/Sctm7yBm2O #auspol
â Brendan OâConnor (@BOConnorMP) January 22, 2015
The minimum wage is currently set at only $16 an hour, but employer groups are arguing for its abolition.
A wide-ranging review
Productivity Commission chairman Peter Harris promised that the inquiryâs evaluation of workplace relations would extend beyond its impact on the economy.
âWe know that a workplace relations system goes beyond its important economic impacts, and will take account of the human and social elements of what is at stake,â he said.
âWe are required by our legislation to account of benefits to the community as a whole, and not any particular interest group.â
Data published in one of the papers shows that the relative value of the minimum wage has fallen significantly in the last decade.
The minimum wage now represents only 42 per cent of the earnings of an average Australian worker.
The commission noted in one of its discussion papers that there was âlittle consensusâ in the community about the effects of modest changes in minimum wages on employment of low-skilled workers.
The commission is seeking public responses to five discussion papers that explore the pros and cons of potential reforms.
Competition law scrutinised
Another policy area flagged by the Commission for investigation relates to whether competition law is adequately recognised by the workplace relations system.
The inquiry will assess whether existing competition laws need to be strengthened to make the ban on so-called âsecondary boycottsâ more enforceable.
Secondary boycotts occur when a group of workers takes industrial action that aimed at retarding the business operations of another employer.
The inquiry will also examine whether competition laws should be expanded to ban other types of activities of trade unions and employer associations.
The Productivity Commission has left open the possibility of recommending changes to the Abbott governmentâs workplace reforms agenda.
Inquiry will not look at superannuation
If implemented, the reforms will introduce a new system for union registration and financial reporting.
Importantly, the inquiry will not make recommendations on the governance of individual unions and occupational health and safety.
Superannuation will also not be examined even though the superannuation guarantee is presently managed through the industrial awards.
Want to see more stories from The New Daily in your Google search results?
- Click here to set The New Daily as a preferred source.
- Tick the box next to "The New Daily". That's it.








