Quote:Are you talking about workers here? Not sure what you mean ...
Sort of.
Howard basically made it almost impossible for Unions to operate, which something not even America has done. He then added a system similar to America's.
Thirty years or so down the track from the US' similar contract policy, and what we see in the US is :
1. The minimum wage has actually gone backwards in relation to inflation.
2. The wage earned by the skilled keeps rising
The result were always going to be simple maths:
(Higher wage for skilled)=>(static Wage pool)<=(lessened wage for non-skilled)
The talks of 'losing award conditions' etc, is basically a reflection of 1. (+ an unquantifiable degree of influence from the basic outlawing of 'union interference').
The difference between Australia and the US, in terms of minimum wages, is the US has for the last 3 decades, had a steady supply of people willing to work the worst jobs for minimum wages - illegal immigrants (mostly Mexican), of which there are about 7 million (last I heard).
The US has an entrenched difference between the have's and the have nots.
Australia's situation will end up much worse than the US because :
1. We don't have that percentage of illegal immigrants for one; and
2. The disempowerment of Unions means a much wider variety of people will become effected.
Now, when you have a decent percentage of the population receiving higher wages (and it will be a decent percentage, though I don't know exactly what percentage), there's a number of things that happen, but the most important is this...those higher wage earners drive up the housing market. They do this because :
1. They can afford to pay more
2. They buy investment houses
These booms can occur without contract work (as we've seen in many cities), the difference the next time will be between those who can afford and those who can't.
Next time, this is what happens...unskilled wages go down...housing prices go up...therefore rent goes up. The combination of lower wages vs higher rent (occurring over a long period of time - think decades, similar to the US, but worse) is going to create vast social problems.
Australia used to have a system, where even those stuck in the cycle of poverty were able to find their way out through education. The introduction of HECS debts put one nail in the coffin, and the IR laws and driving the other nail through the coffin (if you think it's bad now...a couple of decades down the track will put a different perspective on things).
PS. That said, I have no problem with the watering down of unfair dismissal laws - the amount of horror stories (against small business) that have come out of those laws have been ridiculous.