Blue-collar unions on pension age

Date: 27 May 2009

Australia's largest blue-collar unions have written to the Prime Minister seeking a review
of the Federal Governments budget decision to raise to 67 the age at which the pension
can be accessed and warning that any move to raise the age from which compulsory
superannuation can be accessed would be actively contested.

The letter, signed by AMWU National Secretary Dave Oliver and CFMEU National
Secretary John Sutton, said that the membership of both organisations had reacted
poorly to the Government announcement, stating "we would ask you to appreciate that
for working people in manual occupations, the prospect of working on in arduous
conditions to the age of 67 is extremely unpalatable."

"It is neither fair nor realistic to tell 65 year olds who have worked a lifetime in our heavy
industries that they are compelled to work for another two years on a jack hammer, in a
saw mill, a coal mine, vehicle building, heavy engineering and other areas of
manufacturing, before they can gain access to the Aged Pension."

The co-signatories have further stated that they view the savings from pushing back the
retirement age for working Australians may well be a 'false economy' asserting that "If
an actuarial study of this decision were conducted we believe it would find the costs of
this decision to the economy and taxpayer through a higher injury rate and
increased rehabilitation costs would outweigh any savings."

The two unions propose that savings could be gained by further cutting back
superannuation concessions for the wealthy and that this could fund the Aged Pension
increase, without needing to increase the age at which it can be claimed.

The correspondence made clear to Prime Minister that a decision in the future to raise
the age at which compulsory super can be accessed would be contested, stating "Many
people are now interpreting your Government's move as a precursor to pushing out the
age at which individuals can claim their compulsory superannuation entitlement."

"Needless to say this would be regarded as a seriously retrograde step and would be
opposed by our organisations. Such a move would undoubtedly further damage the
Government in the eyes of our membership and the broader community."

For further information

Contact:	John Sutton, National Secretary
Union:	CFMEU
Phone:	(02) 8524 5850
WWW:	http://www.cfmeu.net.au/

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