Budget Ducks Workers Entitlements

Date: 10 May 2000

Labor Shadow Minister for Industrial Relations, Arch Bevis, said that Australian workers would take cold comfort from the Federal budget which failed to deliver a comprehensive employee entitlements scheme.

"Australian workers will be worried that Peter Reith has total discretion whether to pay employees or not. Reith's guidelines allow him to leave workers high and dry. Paragraph 17.2 of the Minister's guidelines issued in February clearly state:

17.2 While the Commonwealth (and the State and Territories where they participate) will normally provide funds they are not bound to do so either generally or in any individual case.

"The fact that Peter Reith has the ability to deny claims to individual workers is of serious concern to all employees.

"This scheme forces taxpayers to meet the cost of corporate Australia's bad decisions when companies become insolvent. Australian taxpayers are entitled to ask why corporate Australia shouldn't shoulder some of the burden for addressing this problem. Earlier this year even the Treasurer
Peter Costello favoured an insurance-style arrangement partially funded by employer contributions. What has changed between then and now?

"Australian workers deserve to have 100 per cent of their entitlements protected. The Government's half baked scheme is no substitute for a national solution to this problem," said Mr Bevis.

For further information

Contact:	David Tansey
Union:	ALP Federal
Phone:	0416 136 164
WWW:	http://www.alp.org.au

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