Economics Tricks

Oh the simplicity of AWA's; stripping-out those ridiculous award conditions for a common sense approach, beneficial to both parties. "What ridiculous award conditions?" I hear you ask. Where shall I start? How about the employers obligation to pay an extra $6.45 per week if the employee collects butchers bones, or paying an extra $16.19 per week if the employee drives more than one horse, or how about the extra $0.94 per tonne for carrying salt. Can you imagine the administration involved with these stupid rules. When paying staff under award conditions employers must determine normal hours worked, hours worked at time and a half, hours worked at double time, hours worked at double time and a half. Do they get the extra $0.42 per day for handling diapers ? Did they work in the forest this week? In that case under the award they receive an additional $20.32 per week. Did Fred collect some money from Mrs Jones? In that case he receives an extra $20.32 per week for collecting monies (but only if that money was over $600). What idiot sits down and determines these laws? An AWA simply trades off these silly little extras for an increase in the basic wage and sensible overtime rates.

Refining award conditions is not unique to AWA's. Provisions for increased productivity and flexibility in the workplace were introduced by the Labor state government in 1996 when the Enterprise Agreements were introduced. The only significant difference between an AWA and an Enterprise Agreement is the Enterprise Agreements encompass the whole organisation; furthermore, Enterprise Agreements were not attacked by that slick, well managed union scare campaign.

Yes, the award system was designed as a safety net, and there should always be a safety net, but please, keep it simple. Employers have better things to do than spend hours determining silly little allowances when it is beneficial for all concerned to just pay an extra one or two dollars per hour in lieu.

As well as the administrative burden, the current award system makes it very difficult for employers to operate a business out-side 'normal hours' . The Transport industry award stipulates paying time and a half for the first two hours then double time thereafter for any work on a Saturday. For employees to work on a Sunday the employer is forced to pay double time and a half. On top of that the company is forced to pay 9% superannuation, 9% Workers Compensation and 6% payroll tax. Because of this, very few transport companies can operate legitimately on a weekend. I am sorry if that extra Saturday income needed to pay the mortgage is lost by the worker, but what is the point of the company operating at a loss.

Unemployment is a thing of the past. These days, employers must look after good workers more than ever. Pay rates are increasing at a rapid rate as employers struggle to keep good workers. Why penalise employers further with the return to Awards and unfair dismissal laws. If the situation deteriorates any further then small and medium business owners with accumulated superannuation will begin to ask "What is the point?"