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PRIME MINISTER
STATEMENT BY THE PRIME MINISTER, THE HON PJ. KEATING, MP'
JOBS NOT GST
Today's Accord agreement between the Government and the ACTU is an historic
achievement in industrial relations and wages policy.
For the first time both wage increases and the timing of scheduled superannuation
guarantec increases will be contingent on progress in creating jobs and reducing
unemployment.
The Accord poses a clear distinction between economic policies under the
Government, and those proposed by the Opposition.
The Opposition Goods and Services tax will threaten jobs.
The Government's economic policies will create jobs.
I recognise that the task of creating jobs is not easy.
The world economy is growing much more slowly than expected.
Growth in Australia can be accelerated, but it requires determined efforts by
govenment, by business and employees and their representatives.
For its part the Labor government is committed to practical sensible policies to
improve investment and stimulate growth.
These policies include a substantial cut in the company tax, an investment allowance
of up to 20 per cent, investment in public works and infrastructure, and job training
programs. The role of business is to seize the opportunities offered by a favourable tax
environment to increase investment.
And the trade union movement. is now committed to accepting the postponement of
both wage claims and scheduled increases in employer funded superannuation
payments if employment creation falls short of what we believe is an achievable
minimum.
Today's agreement sets a minimum lcvel of employment of 500,000 additional jobs
over three years, progress towards which will become a requirement for scheduled
wage and superannuation increases.
It also embodies the agreement between the Government and the ACTU that wage
movements in coming years will predominantly be negotiated at the workplace level,
in return for productivity increases, and be incorporated in workplace agreements.
Where it is not possible to reach workplace agreements, and subject to progress
towards the objective of bigher employment and the commitment to wage increases
consistent with maintaining our international competitiveness, employees will be able
to apply to the AIRC for arbitrated safety-net wage increases.
The safety-net is primarily for low paid workers.
in the first instance these arbitrated safety-net inr~ eases will be accessible at the
workplace level.
These increases will be accessible only where there is no prospect of further
conciliation or negotiation resulting in a workplace agreement.
In determining the timing and extent of any arbitrated safety-net adjustment, the
Commission will apply its normal criteria and have regard to the circumstances of the
employer and industry concerned.
There will be no double counting. Arbitrated safety-net increases will not apply to
employees receiving wage increases through workplace bargaining.
Any arbitrated safety-net adjustments shall be consistent with the central objective of
promoting sustainable employment growth.
Such increases will be restricted to a maximum of $ 8 available after 1 July 1993.
Subject to progress towards the employment increase there will be scope for two
further adjustments of between S5 and $ 10 from 1 July 1994 and from 1 July 1995.
In recognition of the prevailing condition of the labour market the Government has
also agreed that unemployed people aged 60 and over and who have been unemployed
for 12 months or more will not have to continue to meet the work test. These people
will have the option of continuing to seek work and receive unemployment benefits or
to transfer to a Provisional Age Pension. If they choose the pension option, they will
also have available to them the other benefits enjoyed by age pensioners. The
Government will review the appropriateness of the program in the ligbt of
developments in the economy.
MELBOURNE 19 February 1993 I. I
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