Monday, August 26, 2013

Another Jericho

Wage rise blowout a figment of Coalition’s imagination | Business | theguardian.com

Another good, clear column from Greg Jericho here, with lots of graphs, and ending with this summary:

For the past six years there has been a lot of hoo-hah said and written about industrial relations. As soon as the ALP moved to change IR legislation, warnings came from the Liberal party and conservative commentators of a wages boom. They also warned that the Fair Work Act would destroy productivity.

It didn’t.

In his campaign launch speech on Sunday, Tony Abbott talked of returning IR to the “sensible centre”. It’s a claim based on the view that unions now have too much power. If that is true, there is scant evidence they have used it to gain excess wage rises which have decoupled earnings from productivity.

When the Liberal party does finally announce its changes to IR after the election, it would be nice if they could keep themselves to fixing problems that actually exist, and not ones that occur only in their imagination.

No comments: