Reith Kills Entitlement Guarantee

Date: 27 April 2000

Workplace relations minister Peter Reith today ruled out, for the first time, any form of insurance scheme or employer levy which would guarantee workers their full entitlements.

At a meetinf od state and territory labour ministers, Reith presented as a fait accompli the taxpayer-funded employer entitlement security scheme whioh has already been rejected as inadequate by the Labor stateas.

Reith told the meeting the taxpatyer scheme would run for three years before being reviewed.

No state or territory has to date signed up to the scheme which the rhe Labor states believe the scheme is inadeqate and worng in principle.

The territories are also opposed to the scheme, while SA said they would prefer an insurance shceme, while agreeing to support the Reith scheme in principle. WA said they would support the scheme in principle but wanted more detail.

Reith said he would work unilaterally and start payments to workers in June (although he told a press conference it was May)

He said the scheme would meet 80 per cent of entitlements, however Labor states say the scheme will in many instances only pay 20 per cent of entitlements and would most adversely effect long-term employees because of the capping of individual categories of entitlement.

The Labor Ministers today described the Reith approach as "attempted blackmail" and said they would continue to fight for a full entitlement scheme.

For further information

Contact:	John Sampson
Union:	Politics - NSW
Phone:	0419 014135

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