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  • Unsustainable wage increases already moving onshore

    12/04/11

    Huge levels of wages growth are bound to move onshore if the Government doesn’t act to ensure sustainable pay increases.

    Workplace Relations Minister Chris Evans today has backed comments by senior Labor Minister Martin Ferguson confirming that wages growth in the offshore resources sector is out of control.

    “The Government’s acknowledgement of this situation comes a day after we have seen the result of CFMEU influence on the construction of the Wonthaggi Desalination Plant in Victoria causing huge budget blowouts,” Senator Abetz said today.

    “There is now speculation that the Wonthaggi deal has set a benchmark for the construction sector, which has fed in to the increased construction costs being demanded for the National Broadband Network.”

    “The Government needs to be concerned, not just about the goose that laid the golden egg, but the risk of an entire flock being slaughtered.”

    “It’s not just the resources sector but the Australian economy at risk if unrestrained wage demands spread.”

    “Unsustainable wages growth will lead to increased inflation, cost of living pressures and upward pressure on interest rates and job losses.”

    “Wage increases are good but they must be real-wage rises based on productivity.”

    “The Minister is delirious if he honestly thinks this won’t spread to the mainland, because both are covered by the same Fair Work Act!”

    “The former Coalition Government, which set up the Australian Building and Construction Commission (ABCC), ensured that wage increases were productivity based.”

    “Now Labor has let the unions back through the door with expanded right of entry. Labor has weakened the ABCC and is now allowing wages growth to spiral out of control.”

    "Labor needs to stop talking and start acting," Senator Abetz concluded.
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