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Tax cuts don't compensate WorkChoice

Date: 16 October 2007

The tax cuts promised by John Howard & Peter Costello will not compensate working families for the Work Choices IR laws and the Govt's plan to push a further 1.5 million workers onto AWAs if it is re-elected, the ACTU said today.

Gvt-funded study showed AWA workers worse off

A recent government-funded study by Sydney University found workers on the Howard Government's AWA individual contracts earn on average $106 a week less than workers on collective agreements.

Of further concern is the Coalition's plan to push an extra 1.5 million workers onto AWAs, as revealed in a previously confidential Department of Employment and Workplace Relations document recently reported in the media.

The $20 a week tax cut for average workers promised by the Liberals yesterday is nowhere near enough to cover the loss in pay from Work Choices & the increases in housing, petrol, and other living costs for working families says the ACTU.

People losing out under IR laws

"The facts show that people are losing out under AWAs and the Work Choices laws are putting downward pressure on wages," ACTU President Sharan Burrow said.

"It is also clear that John Howard and Peter Costello intend to take Work Choices further.

Denials can't be trusted

Their denials on this issue cannot be trusted," said Ms Burrow.

"A Dept of Employment and Workplace Relations document shows the Government already has a plan to lift the proportion of the workforce on AWAs from 5% to 20% -- this would mean around an extra 1.5 million workers being pushed onto AWAs.

"The rising costs of housing, petrol, childcare, health and food are already leaving working families struggling to keep their heads above water.

Tax cuts won't help working families rising living costs

"There have been five interest rate rises since the last election and mortgage repayments are up an average of $65 a week for working families.

"There is no way the Liberals' promised tax cuts can cover working families' rising living costs as well as the impact of Work Choices," said Ms Burrow.

For further information

Contact: Shannon Walker
Union: ACTU
Contact Mobile: 0408 513 849
WWW: http://www.actu.asn.au/


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