Cabinet to consider minimum wage plan

By Meaghan Shaw

March 7, 2005

Federal cabinet will today consider proposals for an expert panel to set the minimum wage - a move backed by a major industry group.

The Australian Industry Group says the current system of the Australian Industrial Relations Commission setting the minimum wage has resulted in wage adjustments far in excess of both inflation and general productivity improvements.

In a plan released today, the industry group proposes a British-style minimum wages commission chaired by an economist or industry expert.

The commission, which would conduct its own research and hear from relevant parties, would make recommendations to the AIRC, which would be prevented by legislation from imposing a higher adjustment than that proposed.

The plan also calls for a cut in the number of federal labour awards from more than 1000 to just 20, limiting the number of minimum conditions allowed in awards, and stronger powers to deal with pattern bargaining.

It proposes that some minimum conditions, such as unfair dismissal protection and long-service leave, should be set by federal legislation.

The plan comes as cabinet discusses the way the minimum wage is set.

It will look at the expert panel option, which could be free-standing or a part of the AIRC.

The ACTU has called on the Government to guarantee that minimum wages will be set independently of the political process.

Prime Minister John Howard said yesterday that more changes to industrial relations would increase productivity and wages and reduce unemployment.

He blamed Australia's skills shortages on economic growth, as debate raged about the Government's plans to increase skilled migration by 20,000 places next financial year.

"This is a problem of success, it's not a product of failure," Mr Howard told Channel Seven. "The reason we have shortages is that the economy has grown strongly."

But Opposition Leader Kim Beazley said the Government had created an $833 million skills deficit by not matching state governments' funding on training investment. He said the Government had also turned away more than 400,000 people from TAFE and university.

"If the Commonwealth had spent what they should have spent on skills, we would not be talking about importing skilled labour because we'd have enough trained Australians to do the job," he said.

Immigration Minister Amanda Vanstone said the Government would consider advertising on a website the types of jobs available in Australia. She said the states could sponsor migrants in the areas where skills were needed.

Meanwhile, refugee groups say the Federal Government should be looking in its own backyard instead of appealing overseas for skilled workers.

The Asylum Seeker Resource Centre in Melbourne released a survey of the qualifications of 61 Sri Lankans on bridging visas.

They included truck drivers, machine operators, motor mechanics, panel beaters, chefs, boat assemblers, computer, electronics and hospital technicians, registered nurses, welders and a banker.

- with Andra Jackson