FOR MEDIA' WEDNESDAY, 25 MARCH, 1981
WEEK
Attached is the text of a letter telexed to all State
Premiers and the Chief Minister of the Northern Territory
this afternoon. 000---
K 0:
PRIME MINISTER CAN BERRA&
My dear Premier, The Commonwealth Government is deeply
concerned about the implications of the present union
campaign for a 35 hour working week. ' I am writing to
propose that the union movement's campaign for shorter
working hours be included on the agenda for the
forthcoming Premiers' Conference.
Our concern has been heightened by the rise of
15.2% in ordinary time earnings in the December quarter
1980 over the corresponding quarter in 1979. This is
substantially above the rate of increase in the cost of
living for the same period and goes far beyond the.
capacity of the economy to pay-higher wages.
The Commonwealth's opposition to the general
introduction of shorter working hours is based on the
severe adverse effects this would have on the Australian
economy and, in particular, labour costs, the
competitiveness of Australian industry, economic
a ctivity and employment.
A reduction of-the working week from 40 to
hours will lea&--to increased overtime, a significant
rise in unit labour costs of over 20% and add billions
of dollars to the national wage bill.
Great opportunities are opening up for the
Australian economy in the 1980' s. It would be a
national tragedy if the. 35. hour week campaign, along
with other s ' er ious inflationary pressures, were allowed
to prevent their realisation.
The Commonwealth will be doing all within its
own power to offer full support for employers in
resisting the union campaign for shorter hours. We will
be taking whatever action is available to us within the
Commonwealth's contractual obligations, the taxation
system, the Government's own employment areas' and before
industrial tribunals. We will be urging major
Australian companies to support firms faced with
industrial difficulties. as a result of the shorter hours
campaign. / 2
The adoption of a similar'approach by State
and Territory Governments in support of the
Commonwealth's stand would be in the overal-l interests
of the nation. I ask that you join with me and other State
Premier s and the Chief Minister at the forthcoming
Premiers' Conference to consider seriously the action
Governments can take to ensure Australia's economic
prospects for the 1980' s are not jeopardised by the
shorter working hours campaign.
Premiers and the Chief Minister. Yours sincerely,
( Malcolm Fraser)