Joanne Ryan (Lalor, Australian Labor Party) Share this | Link to this | Hansard source

I rise today to talk about wages growth and the first act of the Albanese Labor government, the Jobs and Skills Summit, because this government has spent the last two years following through on the findings of that summit and what drove that summit.

The summit's focal topics included keeping unemployment low, boosting productivity and raising incomes; delivering secure, well-paid jobs and strong, sustainable wages growth; expanding employment opportunities for all Australians, including the most disadvantaged; addressing skills shortages and getting our skills mix right over the long term; maximising jobs and opportunities from renewable energy, tackling climate change, the digital economy, the care economy and a Future Made in Australia; and ensuring women have equal opportunities and equal pay.

In August 2022 the member for Hawke and I had our own outer western suburbs jobs and skills summit. Our local summit helped to inform the national Jobs and Skills Summit in Canberra on 1 and 2 September 2022. At both summits, we heard similar information. We heard that the feminised industries, particularly the care economy, were being left behind in terms of wages. We heard that the industries, including child care and aged care, that those opposite would rather we didn't mention had bargaining systems so complicated that wages were going backwards and there was understaffing and reduced productivity.

I stand here now, a proud member of the Albanese Labor government, knowing that we are delivering wage increases of up to 15 per cent to aged-care workers and early childhood educators and carers. Why? Because the coalition government purposely kept wages low and allowed enterprise bargaining to collapse—so much so that only 14 per cent of industries were covered by an agreement and we experienced a decade of Australians going backwards financially, with stagnant wages, particularly those in the care economy. Those things have now been addressed. Our industrial relations legislation has seen industries opened up and negotiations made easier for workers, to ensure that their wages will continue to grow.

After the Jobs and Skills Summit, the government took steps to reinvigorate bargaining with our significant reforms under the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act. These included enacting the new supported bargaining stream, which has reduced the barriers for low-paid sectors to access the benefits of bargaining; making the better off overall test simpler and fairer; and giving the Fair Work Commission more power to arbitrate and resolve intractable bargaining. Because of this government, there are now half a million more Australian workers covered by current enterprise agreements. This is boosting wages and workplace conditions.

To put it bluntly, Deputy Speaker, when the Labor government say they're going to do something, they do it. As an election commitment, the Albanese government said that it would prioritise addressing the cost-of-living crisis with well-thought-out and practical measures, and that what is what we've done. In less than a full term we have successfully turned a decade of coalition government deficits into Labor surpluses. We've ensured wages growth. We have the gender pay gap down to 11 per cent, the lowest it's ever been. This is a government that I am proud to be a part of, a government committed to increasing wages, tackling inflation and ensuring that unemployment doesn't rise. There has been carefully planned and carefully implemented legislation brought to this place, one step at a time, delivering on the commitments that we made on taking government and delivering on the things that we found in the skills and employment summit.

Jenny Ware (Hughes, Liberal Party) Share this | Link to this | Hansard source

I rise to speak on this motion in relation to the Labor government's workplace relations policies, and I note that it was originally moved by the honourable member for Werriwa. The honourable member for Werriwa, of course, represents an electorate in Sydney's south. After the next election, following the Electoral Commissioner's redistributions, the suburbs of Glenfield, Bardia, Macquarie Links, Macquarie Fields and Long Point will be within my electorate of Hughes. The suburb of Ingleburn, currently within the electorate of Macarthur, will similarly be moved into Hughes. If I am re-elected, I look forward to serving and representing those constituents, as my seat will then be firmly in southern and south-west Sydney.

For those in south-west Sydney, indeed for those throughout the entirety of our nation, the role the federal government plays in workplace relations is critical. It is critical for those working in manufacturing, in retail trades and in construction. These are sectors that predominate in southern and south-west Sydney. There are also large numbers of small businesses within my existing electorate and within the areas that will become part of my electorate. Industrial relations policy is top of mind for our small businesses, and they are not happy with this Albanese Labor government. This is not the government of Hawke and Keating or even of Whitlam, who were committed to looking after the so-called working class. Instead this is a government that has forgotten the economic reforms of Keating and Hawke, with the wages accord, a system that ensured that wage increases were linked to productivity, giving prosperity to Australians. Despite his PhD in Keatingism, this Treasurer does not understand that, and the Minister for Employment and Workplace Relations understands it even less.

Take, for example, the manufacturing sector. The manufacturing sector plays a crucial role in the Australian economy. During COVID, it contributed 6.2 per cent to the GDP. Imagine what it's doing now outside of COVID. It supports more than 862,000 jobs. The manufacturing industry in Australia is made up of nearly 104,000 businesses. Food manufacturing, for example, is the leading industry in the manufacturing industry, with 18 companies in the top 100 manufacturing companies. The total output of the manufacturing industry for Australia in 2020 was $319 billion. However, this is an industry that has been largely ignored by the Albanese Labor government.

Last week, I met with the Southern Strength Agile Manufacturing Network. This is a group of manufacturers that are working together to ensure the long-term viability of the manufacturing sector. They spoke to me of the workplace shortages throughout the sector, especially in the trades: boilermakers, fitters and turners, welders, toolmakers, structural steel workers, packers, metal fitters and machinists, maintenance technicians and of course electricians, plumbers and pipefitters. Where is Labor's plan to address the shortage of manufacturing workers? The Labor government's workplace relations legislation does nothing to address the critical trades shortage that Australia currently has and that is on a trajectory to become a national crisis.

Then we turn to the retail trades. Throughout my electorate, as a result of many factors, including the cost-of-living crisis brought on by this government, we have many vacant shopfronts. For the first time in my memory, we have spaces vacant in suburbs like Sutherland and Engadine for months on end. In Sutherland in the last two years I have been in parliament, two of the three beautiful local homewares and gift stores have had to close. My Little Dream Co. at Sutherland remains a beautiful independent retailer with the most wonderful children's books, clothes and toys. However, she is now the sole trader in that space. The retail trades have been savaged by the Labor government's policies, including workplace relations.

Now we go to the construction industry. The National Electrical and Communications Association has spoken about the chronic shortage of trades within this sector and the chronic shortage of electricians—we need at least another 85,000 by the end of 2050. This government has no plan on workplace relations to address the critical shortages that our country is facing.

Fiona Phillips (Gilmore, Australian Labor Party) Share this | Link to this | Hansard source

I have been pleasantly surprised to see the growing confidence in both the aged-care and childcare industries in my electorate of Gilmore following wage increases in both sectors. Whether it's caring for our youngest citizens or our oldest, the Albanese government is supporting those who play a vital role in our community with a much-deserved pay increase. I have visited many childcare centres in my electorate over the past few months, and the management, staff and families were thrilled about this government's decision to fund a 15 per cent increase for early childhood educators. Not only has it provided a boost for existing employees; this pay rise has made the childcare sector more attractive for school leavers and those seeking work in an industry that is shaping the next generation of Australians. Since the announcements, I've started seeing new childcare centres popping up in my electorate, which is fabulous because many families struggle to secure a place for their children. In Gilmore, we need more childcare providers, and this pay rise means more staff, more job security, more centres and ultimately more places for our little people.

The ECTARC Clipper Road Early Education and Care Service in East Nowra welcomed the pay rise, with the CEO Anita Kumar explaining how difficult it had been to attract and retain staff in an often challenging environment. The majority of the young children in care at Clipper Road are from disadvantaged backgrounds, and the wonderful staff are exhausted by the end of the day. Anita said the pay increase was well deserved by her passionate team and she is confident it will help attract additional staff, which means the centre can stay open longer, therefore helping local families in need. It was also great to see Little Zak's Academy recently open its doors in Bomaderry, with a second centre soon to open in Kiama. New childcare centres are also on the drawing board for Ulladulla, Sussex Inlet, North Nowra and central Nowra, which is just fantastic.

I'm seeing a similar scenario playing out in aged care. In the electorate with the second-highest number of aged-care pensioners in the country, aged-care workers are in demand. The Albanese government's investment of $3.8 billion over four years to support the aged-care sector has given providers more confidence. The 15 per cent wage increase for aged-care workers makes this important industry more attractive for workers needing the financial security to buy their own homes. Funding pay rises for aged-care workers of up to 28 per cent for workers from 1 January 2025 will facilitate the delivery of a higher standard of care for older Australians.

Labor's workplace reforms are delivering secure jobs and better pay, which is providing cost-of-living relief. In the two years until May 2024, average weekly earnings have increased by $153.60 per week, compared to only $55.90 per week over the two years prior to May 2022, when the coalition was in office. In the June 2024 quarter, I'm pleased to say we've seen a wage price index growth of 4.1 per cent, the second-largest annual growth rate since December 2009. The WPI has been equal to or above four per cent for the last four quarters, which has not occurred since Labor was last in government. Under the Albanese government in the year to June 2024, we've seen the highest wage increases in the healthcare and social assistance sectors, education and training industry, and electricity gas, water and waste services.

Since coming to government, we have seen strong nominal wage growth and weakening inflation, which has resulted in real wage growth returning, thanks to our workplace relations reforms and responsible economic management. We have gone in to bat for low-paid workers with a national minimum wage increase three times in three years. That's an extra $103.30 per week in the pockets of full-time employees. We have advocated for wage increases and have taken steps to reinvigorate bargaining with our significant reforms under the secure jobs, better pay act. These changes mean that almost half a million more workers are now covered by current enterprise agreements, improving conditions and delivering real wage rises.

The Albanese government is also supporting women to earn more, and I'm thrilled that in September the female participation rate was at a record high of 63.2 per cent. It's also great news that the gender pay gap is now the lowest on record.

The numbers are clear. People are working and earning more, and real wages keep growing under Labor.

Terry Young (Longman, Liberal National Party) Share this | Link to this | Hansard source

It's been interesting listening to this debate, because I thought it was about real wages, but I haven't heard much about real wages. I've heard about gross wages but not real wages. When I'm out in my community talking to people, most of them talk about net wages. I can remember as a young bloke getting my first pay, which was in a little yellow envelope, a mustard colour—we can all remember those ugly things—and it had 'gross pay $104, tax $14, net pay $90'. You ripped it open, you tipped it out and you had some cash, and it was great. All we cared about was what we got in our hand. We couldn't a toss about what it was before tax; all we cared about was what we were getting in our mitts. But real wages, of course, go another step, because real wages are about what you get for your money.

I remember talking to a young person a couple of months ago about how tough the cost of living was on their family. I said, 'What do you think the solution is?' and they said, 'Maybe they should put wages up.' I said, 'Yes, they could do that. Let's work it out.' Let's say someone's on 50 grand a year, and we gave them another 50 bucks a week. They'll lose $16 of that in tax. The person who's picking the strawberries at the farm gets the same pay rise. The person who's driving them in a truck to the depot gets the same pay rise. The forklift driver gets the same pay rise. Then it gets delivered to Woolies, and the person unloading it gets the same pay rise. The person putting it on the shelf gets it. All those extra gross wages have to be paid for.

So you've got two choices when you're in business. If your gross wages bill goes up, either you've got to put your prices up or you've got to cut your wage bill. It's pretty simple. The thing about it is that most people who are in business can't afford to put their wages up, because of competition. So what happens is they start to lay people off. That doesn't sound like a win. That doesn't sound like a party that cares about workers. So I would contend this: what's the point of getting a pay rise of $50, paying $16 in tax, being $34 better off, when your grocery bill and your cost of living go up $70 a week? That's a net loss of $36. That's a complete waste of time. There are no winners in this whole story. Forget the spin.

I can remember talking to my son. He came to me when he was in his early 20s and he said, 'Dad, I don't understand politics and I don't care about it, but I'm trying to figure out who I should vote for.' Trying to be pragmatic and fair, I said, 'Son, you should probably go and look at all the different parties and see what they stand for and vote for what you believe in.' He said, 'I don't care about any of that stuff, Dad. It's just for old blokes like you.' I think at the time I was about 43! He said, 'All I know is that I seem to have more money in my pocket when the Libs are in, so I'm going to vote for them.' I said, 'That sounds like as good a reason as any, son,' because that is the stark reality.

You can spin this however you like. You can talk about higher wages. We all want more people to earn more; of course we do. But at what cost? 'At what cost?' I ask the government. For goodness sake, are we going to keep putting wages up? We are in a global market, and we are becoming more and more uncompetitive. That's why it was the coalition who brought out the tax cuts—because we believe that net pay increases are what matters. It doesn't put any burden on the employer. It doesn't add costs to the goods that people are buying. Therefore, their wage increases in real terms make a difference to them.

The way that this government's doing it, by continuously putting up gross wages, is just not helping the situation at all, and it's got to be stopped. If they understood economics, if they'd ever been in a business, they would understand that. The problem is they're trying to do it all from a textbook, and all they're doing is the headline. They'll say, 'The member for Longman doesn't want to see people get pay increases.' That's rubbish. I want to make sure that people get more and that they get more for their money. That's what I want to see. I don't want to see ridiculous headlines that just penalise people and make them go further into a hole, and that's exactly what your policies are doing. You're destroying the country. People out there are suffering. I can tell you now, when I go out and I ask the people in my community, 'Who is better off than you were three years ago?' the answer is no-one—no-one—because you're crippling this country.

Steve Georganas (Adelaide, Australian Labor Party) Share this | Link to this | Hansard source

I rise to support this motion and congratulate the Member for moving such a good motion when it comes to real wage growth. I was listening to the previous member saying no-one's a winner when you have wage growth and increases in wages—well, the winner is the person who is getting more money in their pocket. That's what an increase in wages means; it means more money in your pocket. If you were to listen to the other side over the many years I've been here, and seen the many industrial relations policies that have been put forward—whether by the coalition or by us—with us it's about bettering the industrial relations area in terms of increasing wages and giving people the ability to earn a decent living, while on the other side it has always been about putting pressure downward, ensuring that wages remain low. We saw that for the 11 years they were in government—it was the lowest wage growth we have had in the history of this country, and every time that we spoke about increasing wages, the then coalition government opposed it. In fact, when we went in to support the increase in lower wages at the commission, they opposed it and said we shouldn't get involved in it.

What we need to understand is that we have an economy, and within this economy people buy and sell. The majority of people are wage earners. Eighty per cent of Australia's population would be wage earners. They need a decent wage to be able to pay their mortgages, to put food on the table, to get kids to school and to be able to buy consumable goods. That's what keeps our economy going. If we press wages down and ensure they don't go up then the economy starts to stop. Anyone who has done 101 economics knows that once people stop buying consumable goods, the economy goes southward. It's so important to ensure that we have real wage growth, and that's what this government is doing. Since being elected, average weekly earnings have increased by 8.7 per cent, or $153.60 per week. That was two years to May 2024, compared to when the coalition left office and there was only a 3.3 per cent increase per week over the two years prior to May 2022. The wage price index growth of 4.1 per cent in the June quarter of 2024 was the second largest annual growth rate since the December quarter of 2009, which was 4.2 per cent. You can see where we were from 2009 onwards.

We need to ensure that we have decent wages and that wages keep pace with our cost of living. Four per cent for the last four quarters has not occurred since Labor was last in government. There's proof for you; when Labor is in government, real wages grow. When we're not in government, they decline and remain at a level that doesn't keep people living with decent wages and proper pay. We've also seen the lowest-paid workers in our nation—childcare workers and aged-care workers—all receive a big increase. They're all quite happy about it. The aged-care premises I go to and speak to has many, many workers, and they tell me how grateful they are for this wage increase. It's the same for childcare workers—people who do an extremely important job, educating those children at a very early age so parents can either work while they're being looked after. We can repay that by paying them a decent wage, and that also attracts more people to those industries where we need them so much. There's such a shortage at this point in those industries.

In the short time I have left, I want to make sure that we are aware that over the last 10 years we had one of the lowest, slowest wage growths in the history of this country. That was because we need to put policies into place to ensure that wages keep up with the cost of living and a whole range of other things. Unfortunately, we had a government that, all those years, basically wanted to keep wages low. Some in economics argue that if you keep wages low it employs more people—that may be the case for a short time, but the reality is if people can't buy consumable goods and they can't pay for the things they require to live day-to-day then we're going backwards. We want to ensure that we go forward with government.

Debate adjourned.