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Autumn 2006

IR Commission President tips welfare cuts

President of the Australian Industrial Relations Commission Geoffrey Giudice warned recently that welfare payments may be reduced as a consequence of the new Federal Government’s work laws.

Justice Giudice said the 'Fair Pay' Commission set up by the Government to set minimum wages would undoubtedly slow wage growth for minimum wage workers. Without welfare cuts, he said, minimum wages would fail to provide an incentive to work to those on welfare payments.

"People with low skills, low bargaining power, are heading for the Fair Pay and Conditions Standard" that is, the five minimum conditions legislated by the Government "which will have an effect on their incomes," Giudice said. "This will be accompanied by a slowdown in the rate of growth of minimum wages - that's what the Fair Pay Commission is for."

Justice Giudice's comments, were made at an Australian Mines and Metals Association conference and reported in Workplace Express.