PRIME MINISTER 48/ 94
STATEMENT BY THE PRIME MINISTER, THE HON P J KEATING MP
AGREEMENT WITH THE ACTU TO IMPLEMENT ACCORD MARK 7
The Treasurer, Ralph Willis, the Minister for Industrial Relations, Laurie Brereton, and
I met today with the ACTU's Wages Negotiating Committee to discuss the
implementation of Accord Mark 7, " Putting Jobs First".
The Accord partners reaffirmed Accord Mark 7, particularly its objectives of achieving
a minimum of 500,000 net additional jobs over the three years to 1996 and cementing
low inflation as a feature of the Australian economy. The Government proposed, and
the ACTU agreed, that a package involving the two remaining Safety Net Wage
Adjustments in Accord Mark 7 should, in this International Year of the Family, also
incorporate consideration of direct assistance to workers with family responsibilities.
The partners agreed:
to support before the Australian Industrial Relations Commuission second and
third Safety Net Wage Adjustments of $ 8.00 per week not before 1 July 1994
and 1 July 1995 respectively, to be applied where agreement at enterprise level
is not achievable in line with the processes set out in Accord Mark 7.
that there should be a minimum period of 6 months between the first ( already
achieved) and second safety net adjustments and a minimum period of 12
months between the second and third safety net adjustments; and
that for next year's Budget, the Government will have further negotiations with
the ACTU about ways to assist families, and in that context give consideration
to introducing a maternity allowance paid through the Social Security system,
in the spirit of 110 Convention 103 ( Maternity Protection).
This is a landmark agreement in the Accord mould which provides a sure foundation
for sustaining the low inflation recovery in which the essential and characteristic
Australian concerns for social equity continue to be addressed.
A copy of the Agreement concluded today is attached.
CANBERRA I JUNE 1994
AGREEMENT BETWEEN THE FEDERAL LABOR GOVERNMENT AND
THE AUSTRALIAN COUNCIL
OF TRADE UNIONS REGARDING CONTINUING
IMPLEMENTATION OF ACCORD MARK 7
" PUTTING JOBS FIRST" Canberra, I June 1994
The Accord partners hereby reiterate and reaffirm their shared commnitment to
promoting sustainable job growth and substantially reducing unemployment.
Accord Mark 7 " Putting Jobs First" was agreed in February 1993, to apply for the
period 1993-1996 upon re-election of the Labor Government.
In the Accord tradition " Putting Jobs First" is a comprehensive approach to economic
and social policy, based on co-operation not conflict. Its basic objectives are:
to increase employment by a minimum 500,000 net additional jobs over three
years; to maintain low levels of inflation;
to continue the devolution of wage fixation by encouraging bargaining at
industry and workplace levels involving employees and their unions;
to ensure that all workers are protected by a safety net of minimum award
wages and conditions and have access to arbitration;
to provide access to arbitrated safety net award adjustments;
to increase living standards over time through:
increases in real wages associated with improving productivity and
implementing flexibility at industry and workplace levels consistent with
the objective of low inflation;
further improvements in the social wage, including substantial tax cuts,
child care improvements, education and training;
to provide a solid foundation for a long term retirement policy by improving
the level of employer provided superannuation support in line with the SGC
schedule;
to continue the process of increasing equity in pay and conditions of
employment for women workers;
to give further consideration to measures designed to assist workers with
family responsibilities.
Accord Mark 7 commits the Labor Government to " gearing the policy instruments at
its disposal towards achieving a minimum of 500,000 net additional jobs" over the
three years to 1996. The ACTU considers that the Working Nation package, together
with the federal Budget, Uly reflects that commitment.
With more than 230,000 additional jobs created since February 1993, the Accord
partners agree that the recovery is on track to surpass the minimum target of 500,000
additional jobs.
Moreover, the Training Wage Award, combined with the White Paper package, will
enable Australia to attack directly that hard-core problem of long-term unemployment
in a uniquely Australian way, improving equity in the community and efficiency in the
national economy.
Accord Mark 7 commits the union movement to work towards " wage outcomes which
are consistent with Australia maintaining an inflation rate comparable with those of our
major trading partners". The Labor Government considers that the track record of low
inflation rates achieved in Australia in the early 1990s fully reflects that commitment.
The Accord partners agree that the 1 990s must cement low inflation as a feature of the
Australian economy.
Workplace bargaining is proceeding consistent with the broad Accord framework
subject to the effective safety net provided uniquely in Australia by the award system.
The first safety net wage increase contemplated in Accord Mark 7 has been achieved,
albeit not in the agreed form. The parties remain committed to the process as agreed
in Accord Mark 7, and will support access to the Accord Safety Net Adjustments
( including the first) for all groups unable to reach an enterprise agreement, recognising
there shall be no double counting.
It is appropriate, in view of the continuing economic recovery and continuing
achievement of the Accord's key objectives, that the quantum of the second and third
Safety Net Wage Adjustments now be agreed between the parties, so the matter can be
progressed expeditiously through the Australian Industrial Relations Commission.
The Labor Government has proposed, and the ACTU has agreed, that a package
involving the two remaining Safety Net Adjustments should, in this International Year
of the Family, also incorporate consideration of direct assistance to workers with
family responsibilities.
Such an initiative is envisaged and embraced by Accord Mark 7' s key objectives. It
complements and builds upon other initiatives, namely the significant increase in
payments to low income families and in the number of child care places; the child care
rebate which recognises that the cost of child care as an expense in earning an income;
and the Home Child Care Allowance and Parenting Allowance which redirect
assistance to parents caring for children at home.
3
In agreeing to consider initiatives to directly assist workers with family responsibilities
as part of an Accord package, the Government sought the unions' agreement to Safety
Net Adjustments less than the maximum contemplated in Accord Mark 7. In view of
the low inflation outlook, the ACTU has agreed.
Accordingly: The Accord partners will support before the AIRC second and third Safety Net
Wage Adjustments of $ 8.00 per week not before 1 July 1994 and I July 1995
respectively, to be applied ( consistent with the Accord framework) where
agreement at enterprise level is not achievable in line with the processes set out
in Accord Mark 7, at paragraphs 5.10 5.13;
there should be a minimum period of 6 months between the first and second
safety net adjustments and a mninimum period of 12 months between the second
and third safety net adjustments;
for next year's Budget, the Government will have further negotiations with the
ACTU about ways to assist families, and in that context give consideration to
introducing a maternity allowance paid through the Social Security system, in
the spirit of 110 Convention 103 ( Maternity Protection).
This is a landmark Agreement in the Accord mould which provides a sure foundation
for a sustained low inflation recovery in which the essential and characteristic
Australian concerns for social equity remain in the policy mainstream.