"The ACTU's demand that the Federal Government scrap junior pay rates if they don't get the decision they want from the Fair Work Commission reflects a sadly naïve misunderstanding of the important role of that these rates play in helping incentivise employers to give young people a start in the workforce," Innes Willox, Chief Executive of the national employer association Ai Group said today.
"Scurrying to the Government beseeching them to implement their productivity killing agenda is nothing new for the union movement. The ACTU's latest demand runs true to form – if they don't get what they want, the Government has to do their bidding.
"The latest demand betrays a flagrant disregard for the impact of lost opportunities for young Australians trying to get their foot on the employment ladder.
"Pursuing their claim at this time, with mounting economic headwinds including declining consumer confidence and demand, rising business closures, big parts of industry in contraction and a retail sector which is clearly struggling is simply irresponsible.
"Similarly worrying is the clear expectation that Government will do as it is told and legislate to deliver the union movement's demands if the independent umpire doesn't.
"Sadly, there has been plenty to justify their attitude. The last two years have seen the Federal Government implement a parade of deeply problematic changes to our workplace relations laws directed at overturning decisions of the Fair Work Commission and Courts at the request of the union movement.
"This includes the ludicrously confusing new restrictions on when employers can engage an employee as casual and who can be engaged as an independent contractor.
"It would be ridiculous for the Government to entertain calls to override an outcome that the union doesn't like. These are matters that have long been determined by the Commission and they should be left to the independent umpire to determine.
"The Government should immediately and decisively rule out any intervention or to implement the foreshadowed call to increase casual rates.
"No doubt there is a long shopping list of claims to come from the union movement ahead of the next election. This comes while industry is still grappling with the waves of radical workplace relations changes introduced since the last election.
"What is still missing is any proposal to deliver the kinds of flexibility we so badly need in our workplace relations system to move the dial on our persistently abysmal productivity outcomes and sustainably pay for improved entitlements," Mr Willox said.
