1975 Cabinet Records - The Economy 1975 CABINET RECORDS Ð SELECTED DOCUMENTS Submission 1960,...

98 1975 CABINET RECORDS – SELECTED DOCUMENTS Industrial relations A common thread running through the Government’s economic assessments was the impact of the wages’ explosion on company profits and unemployment. In 1974, average weekly earnings increased by 28 per cent. The Labor Government began to argue that wage increases were causing unemployment: one worker’s wage rise was another worker’s job. Some ministers saw the need for a cohesive wages policy in order to moderate wage increases and to convince the labour movement of the need for wage restraint. Wage indexation was the central instrument of this policy. Clyde Cameron, Minister for Labour and Immigration, advocated a ‘plateau’ model of indexation, whereby indexation was weighted in favour of those workers on the minimum wage, rather than those more privileged workers who earned above-award wages. In March–April 1975, the Australian Conciliation and Arbitration Commission ruled that award wages were to be adjusted quarterly in accordance with the consumer price index, and the Australian Council of Trade Unions agreed to exercise wage restraint. Submission 1571, which is included among the selected documents, outlines Cameron’s approach to industrial relations and wages policy. He emphasised the importance of a ‘positive and well presented public relations campaign’ aimed at making the ‘average worker’ realise the ‘threat to his [sic] and his fellow workers’ employment and living standards’ by unrestrained wage claims [A5915, 1571]. In Submission 1960, Cameron’s successor as Minister for Labour and Immigration, Senator James McClelland, supported the full indexation model to avoid conflict with white collar and some manual unions that wished to protect their higher-than-average earnings. McClelland further argued that the Government could not expect indexation to ‘do too much’ in solving economic problems [A5915, 1960].

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Transcript of 1975 Cabinet Records - The Economy 1975 CABINET RECORDS Ð SELECTED DOCUMENTS Submission 1960,...

Page 1: 1975 Cabinet Records - The Economy 1975 CABINET RECORDS Ð SELECTED DOCUMENTS Submission 1960, ÔPolicy on wage fixation methods and wage indexationÕ [A5915, 1960]

98 1975 CABINET RECORDS – SELECTED DOCUMENTS

Industrial relations

A common thread running through the Government’s economic assessments was the impact of the wages’ explosion on company profits and unemployment. In 1974, average weekly earnings increased by 28 per cent. The Labor Government began to argue that wage increases were causing unemployment: one worker’s wage rise was another worker’s job. Some ministers saw the need for a cohesive wages policy in order to moderate wage increases and to convince the labour movement of the need for wage restraint. Wage indexation was the central instrument of this policy.

Clyde Cameron, Minister for Labour and Immigration, advocated a ‘plateau’ model of indexation, whereby indexation was weighted in favour of those workers on the minimum wage, rather than those more privileged workers who earned above-award wages. In March–April 1975, the Australian Conciliation and Arbitration Commission ruled that award wages were to be adjusted quarterly in accordance with the consumer price index, and the Australian Council of Trade Unions agreed to exercise wage restraint.

Submission 1571, which is included among the selected documents, outlines Cameron’s approach to industrial relations and wages policy. He emphasised the importance of a ‘positive and well presented public relations campaign’ aimed at making the ‘average worker’ realise the ‘threat to his [sic] and his fellow workers’ employment and living standards’ by unrestrained wage claims [A5915, 1571]. In Submission 1960, Cameron’s successor as Minister for Labour and Immigration, Senator James McClelland, supported the full indexation model to avoid conflict with white collar and some manual unions that wished to protect their higher-than-average earnings. McClelland further argued that the Government could not expect indexation to ‘do too much’ in solving economic problems [A5915, 1960].