New IR changes - divine advice from above (advice line) (1 Viewer)

[Haku]

what is the no disadvantage test?

 

[pete_mate]

Any aspiring Young Liberals might like to balance their discussion of the reforms with the concerns of the Fair Pay Commission refusing to index any minimum wage increase to inflation, thereby leading to the possibility of real minimum wage decline. As well as this, the "No disadvantage" test of the Employment Advocate will be scrapped, and Unfair Dismissal legislation for those at businesses employing less than 100 employees will also be abolished.

wrong, ross gittins has stated that the fair pay comission would not let wages fall in real terms because the dole is indexed to inlflation. therefore the government would be creating disincentives to work, which it would never do.

the fair pay comissionm will therefore only let wages fall in relative terms.

 

[gorgo31]

what is the no disadvantage test?

Currently, no one who enters into an Australian Workplace Agreement (AWA) is allowed to be worse off under that Agreement than they would be under their relevant award or existing legislation. This will no longer be promised.

wrong, ross gittins has stated that the fair pay comission would not let wages fall in real terms because the dole is indexed to inlflation. therefore the government would be creating disincentives to work, which it would never do.

the fair pay comissionm will therefore only let wages fall in relative terms.

The dole being indexed to inflation doesn't prove anything except that those receiving it won't, in real terms, be worse off. It may be a disincentive to workers considering joining the workforce, but it is speculation as to whether or not the Government will keep the minimum wage pinned tightly to inflation. It will make these decisions at its discretion.

Use Gittin's article to support your views if you like. But as it stands, The Fair Pay Commission, under its legislative entitlements, is under no obligation (unlike the AIRC's National Wage Case) to index the minimum wage to inflation. How it may potentially use its position to act as an incentive to workers to give up the dole remains to be seen.

 

[pete_mate]

yeah, gittins just speculated, but when you think about it it most likely will be indexed or will rise in line with inflation,

index creates inflatiom expectations and becomes self fulffilling, but this is only the mimimum wage, not like in the 70's where award wages were constantly rising

 

[nono]

So do you think there will be an essay question on labour market policies this year then?

I don't think so- they asked one in 2003:

"Explain how current labour market policies contribute to the management of the Australian economy."

And looking at eco past papers there has been no repetition apart from the case study question. I doubt they will ask about the labour market this year...

*hopes they wont*

 

[Haku]

i so agree and hope not too.

hope they still got the casestudy essays this year