PRIME MINISTER
FOR MEDIA SUNDAY, 24 MAY, 1981
ELECTORATE TALK
A couple of months ago, the ACTU President, Mr Dolan, and I
agreed to establish regular talks between the Government and
the ACTU to discuss our respective points of view on industrial.
matters, and on other economic matters cf importance to
Australia. It seemed to me I hope to both of us that such
talks could be a constructive way of facing up to some of the
industrial issues which arise in this country.
This is a time in Australia's history when it is in the interest,
of all of us to put conflict and division aside. For at a time
when. the economy is recovering significantly, it would do great
damxnajif Australians do not work together to increase the level
of economic growth, to increase employment, to increase general
prosperity-, and to establish conditions under which further tax
cuts can 15e possible.
Because private enterprise is responding so strongly to the.-*
incentives provided by Government policies, we are now seeing
a very broad-based recovery in the economy. Economic growth is
faster than it has been for years. Employment is increasing,
and unemployment is falling.: In April this year, unemployment
was at its lowest in four years, and youth unemployment dropped
substantially as part of this trend. All Australians want the
revival of employment to continue. It is vital as a way to
improve our standard of living, and in addition to that, all
Australians are keen that young people in particular should be
able to get jobs.
I do not believe that anyone in this count ry really wants to see
the improvements in our economy, and in the employment situation,
placed at risk. And surely the union movement, with its concern
for the welfare of its members and pot ' ential members, cannot
want to impede economic recovery. All Australians are surely at
one in wanting the economy to continue to strengthen.
The fact is, however, that industrial dislocation, and any
excessive pushing for wage increases outside the arbitration
system must be seen as putting the economy at risk, especially
where little or no account is taken of the capacity of industry
to pay. In particular, there is a well established link between
excessive wage increases and unemployment. The two are inseparable.
Part of the reason for the recent growth in employment is that
Australian industry has come to be more competitive. This has been
enabling it to sell more of its products, both at home and overseas.
The quality of Australian goods is improving all the time. And
the time is certainly well past when there was any reason -to think
that goods made overseas are likely to be better than Australianmade
goods.
But industrial disruption and excessive wage rises certainly
reduce the competitiveness of Australian industry.. And in one
way or another, this is damaging to all of us. If manufacturers
cannot sell as much, they wlll not be able to employ as many
people. Less'production and fewer wage earners will undoubtedly
lead to a situation in which overall prosperity in this country
goes backwards rather than forwards.
The Arbitration Commission recently established some new wage
-fixation guidelines, which have been in operation for only a very
short time. A large number of parties, including both the ACTU
and the Government, made submissions to the inquiry conducted by
the Commission. And it is surely now up to all parties to * give the
new guidelines a chance, and to see how satisfactory they prove to
be. Wage fixing systems are probably never perfect, but it is surely
reasonable to give a fair try to a new set of arrangements.
The__ Go~ yernment is well aware that there are certain difficulties
and dissatisfactions with Australia's. existing wage fixing system. Because
of these feelings, the Government has recently decided to establish
a broad r" Enging independent inquiry into wage determination and
in~ ustil relations in Australia. This inquiry will run concurrently
with the new system of guidelines. The inquiry will take some
eighteen months or so to complete, and it will be able to watch
the new system in operation. I very much hope that all parties and
organisations in Australia will approach this inquiry in a constructive
way... For an inquiry such as this provides an opportunity
for making the breakthroughs which so many of us would like to see,
and which could have such a desirable impact on the industrial
relations scene in Australia. It is my strong hope that nothing
will be done to jeopardise the possible success of this inquiry,
and I appeal to all parties to view it and approach it in a
constructive way.
Mr Dolan and I will be having the first of the regular meetings
between the Government and the ACTU next month. And there are
obviously several matters which both of us will be wanting to
raise at that meeting.-It would be foolish to pretend that the
issues are all easy ones. But the Government for its part will
certainly be seeking constructive solutions that will be in the
interests of all Australians. 0000000