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Today’s Australian leads with the news that Labor has retaken the lead in the battle of the opinion polls. Labor leads 2 party preferred by 53-47 and primary vote by 41-40 over the Coalition.

Today’s Herald runs with a story about how Spotlight thought even 2c an hour was too generous to offer to workers at its new Mt Druitt store. If the Government thinks the bad IR news is going to stop any time soon, they might want to have a not so friendly chat with some peak employer bodies to discuss appropriate use of power in the workplace.

Workers at the new Spotlight store in Mount Druitt are being offered pay and conditions worse than those available to their counterparts in Coffs Harbour.

They are being offered an Australian workplace agreement that does not include the two cents an hour pay rise offered to the Coffs Harbour workers in return for surrendering award entitlements, such as penalty rates, overtime and leave loading. An agreement offered to a part-time worker at Mount Druitt also guarantees only four hours’ work a week.

The equivalent NSW award guarantees a minimum of 12 hours a week for part-timers.

The agreement provides no guaranteed pay rise, saying “your wage rate will be reviewed annually and any increase in rate shall remain at the sole discretion of Spotlight”. Non-salaried employees may be required to work “reasonable” additional hours and on public holidays but there would be no overtime or penalty rates: “Additional hours will be paid at your base rate of pay.”

Hoowa… that’s a hell of an agreement.

Take an agreement where workers:

  • get a crappy base pay rate with everything rolled into it (in effect, a big pay cut),

  • lose the right to reasonable minimum hours of work,
  • lose the right to regular pay rises that account for the rise in the cost of living (most likely delivering real pay cuts)

Kim Beazley told the Herald:

“John Howard’s wages race to the bottom started at two cents an hour; it’s now at zero and we know where it’s going next”

He is absolutely right

The minister for wage slashing and unfair dismissals, Kevin Andrews, counters that the 38 of 40 workers at the Mt Druitt store who used to be unemployed are now $350 a week better off. But did this store suddenly come into existence because the potential wage bill had been cut?

Stores take time to plan, build, fit, etc. Not to mention the time it took to identify that a store was needed there (identifying market need etc.). The capital investment that would go into it all would hardly have been chopped for the sake of penalty rates. I’m not exactly going out on a limb when I hazard a guess that this store was going to be built whether WorkChoices passed last year or not.

So the question then is how much are these newly workers worse off compared to what they should have been paid under a fairer system? And what of all the other workers within Spotlight who were already employed but who have had their wages cut? And what of other companies who might get to a point where they feel that they’ve got no option but to similarly slash wages to compete on price terms?

This is a can of worms for the Government. It can’t keep claiming that this is good for the economy, it’s got no basis for doing so. It can’t criticise Kim Beazley for wanting to abolish AWA’s when Beazley’s got on one hand hard evidence of AWA’s being used solely to slash wages and on the other the economic evidence of folks like the OECD saying that collective bargaining is the way to go for productivity growth.

It’s opened up a battlefront that it is going to have trouble shutting down. Federal-State relations, nuclear power, gay marriage, asylum seekers, electoral changes… They’ve all been thrown out there, but the wedges and the spin aren’t working anymore.

The mask is off. The Government has shown its ugly face and we’re seeing it for ourselves. Every time another wedge comes out, every time Peter Costello decides he wants to put out another diversionary brainfart, it’ll get a day or two before another Spotlight or Cowra abbatoir happens.

There is no joy for the labour movement (political or industrial wings) in this. There’s no schadenfreude. You can’t point, laugh and think of your own political interests first when people are getting screwed mercilessly, day after day, because of disgraceful laws.

There is simply a growing fury and determination. The Government’s got to go.