By Peter Boyle
On May 13 the ACTU executive rejected a call by several unions covering low-paid workers for a national wage claim of $8 per week for workers who had not managed to strike enterprise bargains with their employers.
ACTU president Martin Ferguson said that the $8 "safety net" rise, allowed for under Accord Mark VII, would not be pursued until the ACTU and the Labor government were satisfied that there was progress towards the creation of 500,000 new jobs over three years. With the latest official unemployment figures showing a 73,000 drop in the number of people with jobs, and falling job advertisements, the $8 pay rise appears to be no where in sight.
Ferguson also said that the "safety net" rise would not be pursued until only a minority of workers are not covered by enterprise bargains. By March, only 10% of workers were covered by enterprise agreements.
An ACTU delegation is due to meet with federal government to discuss progress on the job front and on enterprise bargaining.
The push for the $8 increase came from the Textile, Clothing and Footwear Union and the Liquor Hospitality and Miscellaneous Workers Union. Their members are some of the lowest paid because they are in a weak industrial position.
Manufacturing sector workers have little bargaining power in the face of sustained job losses and factory closures due to tariff cuts. According to ABS figures, jobs in the clothing and footwear industries have shrunk by 22% (from 81,000 to 63,000) in the last three years. There is widespread use of outworkers who earn as little as $2.40 an hour, according to the union.
Workers in the hospitality industry are weak because of extensive use of casual workers.
Only the more powerful unions in areas with potential for rapid productivity gains due to technological advances can expect to gain significantly from enterprise bargains.
Under Accord Mark VII, the $8 safety net rise was to become available from July 1. Unions covering workers under state awards have warned that because it normally takes a few months for national wage rises to flow on through the state systems, a late claim would prejudice their members.