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Issue No. 311 | 16 June 2006 |
Big Target
Interview: Rock Solid Industrial: Eight Simple Rules for Employing My Teenage Daughter Politics: The Johnnie Code Energy: Fission Fantasies History: All The Way With Clarrie O'Shea International: Closer to Home Economics: Taking the Fizz Unions: Stronger Together Review: Montezuma's Revenge Poetry: Fair Go Gone
Esselte Occasioning Workplace Harm Indonesian Guards Occupy Office Leafy Council Rewards Choppers
The Soapbox The Locker Room Parliament Education
Career Opportunities A Nuclear Error
Labor Council of NSW |
News OECD Undercuts Howard
In a comprehensive refutation of the federal government's claims for its radical new workplace regime, the Organisation for Economic Co-operation and Development finds ... - unfair dismissal laws do not cost jobs - minimum wages don't increase unemployment - collective bargaining is strongly related to low levels of unemployment The findings are contained in Economic Outlook 2006 which brings together research and analysis from the OECD's 30 member countries, and an accompanying document, Boosting Jobs and Incomes. The report describes the impact of EPL (employment protection legislation) and union density on unemployment as "statistically insignificant". The findings are somewhat surprising, given that the OECD, often referred to as the Rich Man's Club, has been liberal with conservative remedies for the ills of developing nations. Howard and Andrews have repeatedly claimed that individual contracts, inferior conditions and reduced wages will lead to greater employment. Their other key claim is for increased productivity but that is undermined by the New Zealand experience where businesses that cut wages and conditions, simply transferred the savings into profit. In fact, after New Zealand introduced its Employment Contracts Act, in 1991, productivity nosedived in comparison to Australia which, at the time, had a strongly centralised, collective wage-setting structure. Federal Shadow Treasurer Wayne Swan said the OECD's findings were "a direct assault on the economic case" the Government had mounted for Workchoices.
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