Union survey says no wage cuts – Case Study

As the Prime Minister and business gets together, the big manufacturing union, the AMWU, says cutting wages is definitely not a means to improve productivity. In a survey it commissioned, 72 per cent of people were opposed to cutting wages and conditions as a means of improving output. MORE

Of course though in the short term you’ve got the problem not so much of competitiveness but survivability of Holden. Mike Devereux, the boss, says that costs will have to be brought down and everything’s on the table. Is there any circumstance when unions would consider a wage cut to keep Holden buoyant?

Over 84 per cent of those polled agreed that the way to boost productivity would be build cultures of trust between workers and employers and their unions and to go down the high road path of investing in quality and innovation.

Wage cost in manufacturing is around 16.8 per cent according to the ABS figures of manufacturing cost. So if even workers took a 10 per cent wage cut, the best saving a boss is going to get out of that is around 1.6 per cent.


From the perspective of a HRM Manager of Ford Motor Company what strategies could you use to increase productivity in order to reduce costs and hopefully save jobs in the long term.



Union takes youth pay campaign to Canberra

Currently many employees on minimum wages will only receive full pay when they turn 21, something that unions say is unfair.

A young person can start in retail at say 15 years of age. They’re on 45 per cent of the adult rate. Then when they’re 16 they go to 50 per cent and thereafter they go to 60 per cent, 70 per cent, 80 per cent and so on, and at 21 they finally get to the adult rate.

Russell Zimmerman is the executive director at the Australian Retailers Association. He says industry is preparing to lodge its application arguing against pay increases for younger people in the next few weeks.

The claims also comes as the union movement is pushing for $30 a week rises in the minimum wage.

With a federal election in September and the Government doing badly in the polls, Russell Zimmerman says the union is trying to get as many claims through as it can.

1. Who are the stakeholders?

2. What are their claims?

3.  What are impacts the stakeholders if the claim is successful?



Employers push to cut pay, hours

EMPLOYERS have expanded their push to cut minimum working hours – in one case to as little as 90 minutes a day for school students – and to slash weekend pay for casuals.

They are also moving to abolish evening penalty rates and to narrow the definition of ”shift work”, according to submissions to a major review of the awards system being conducted by Fair Work Australia.

Union counters claims by failed car parts maker

The Australian Manufacturing Workers Union says claims it sabotaged the restructure of a Melbourne car parts maker are wrong. The former management of the company APV Components claims union organisers refused to negotiate on redundancy entitlements, leading to the company calling in the receivers yesterday. More