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Minister says labour costs must fall to New Zealand levels

24 August 2005

Australian labour costs were too high according to a Federal Government minister who said changes to work laws were necessary to bring us into line with New Zealand.

Changes to work laws...should nurses earn less?
Changes to work laws...should nurses earn less?

The Industry Minister Ian Macfarlane said Australia was many years behind New Zealand in introducing industrial relations reforms that reduced labour costs.

"We've got to ensure that industrial relations reform continues so we have the labour prices of New Zealand," he said.
"They reformed their industrial relations system a decade ago. We're already a decade behind the New Zealanders.

"There is no resting."

The comments are bad news for Australian workers considering the New Zealand minimum wage is $8.75 an hour - $4 less an hour than here.

Semi-skilled production workers earn up to 48 per cent more an hour than New Zealanders doing the same job

HSU national secretary Craig Thomson said it was clear the Federal Government's proposed changes to work laws were about cutting wages and conditions.

"The Government seems to be saying if people earn less are easier to sack and have less rights at work we will be better off as a country," he said.

"But if working Australians and their families are worse off these changes cannot be good for Australia.

Labour costs in New Zealand are lower but productivity is also much lower," he said.

"It is hardly the sort of example we want to follow."

If you want to learn more about the proposed changes to work laws visit the campaign section of this site

A full set of fact sheets is available here.


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