Abbott should start using his loaf on IR issues: Gillard
The Age
Friday February 19, 2010
BREAD-AND-BUTTER issues have returned to the industrial relations debate with Opposition Leader Tony Abbott claiming that the price of a loaf of bread would jump at least 20 per cent because of Labor's award overhaul.Speaking on Sydney radio, Mr Abbott said labour costs at bakeries were expected to rise by 20 per cent and the price of bread by at least that much."[This] means that the price of a loaf of bread could go up by a dollar a loaf from, say, roughly $4 to roughly $5," Mr Abbott said."Under the slogan of modernising awards, there are all these unintended consequences."Workplace Relations Minister Julia Gillard said Mr Abbott had made a basic mistake."Mr Abbott has again been demonstrating that he finds economics boring," she said. "The price of bread has many costs, like electricity, flour, rent and the like, and so any increase in labour costs does not translate into an equal percentage increase in the cost of the loaf."The Baking Manufacturers Industry Association, in a submission, said it expects labour costs to rise from between no change in South Australia to 30 per cent in Tasmania. In Victoria wages could rise 16.2 per cent. A representative did not return calls about the price of bread.Mr Abbott's claim about the price of bread was dismissed as "absurd" by Joe de Bruyn, national secretary of the Shop, Distributive and Allied Employees Association."Tony Abbott is just talking through his hat. The claims that he is making are so absurd that no person in his right mind would give them any serious consideration at all."Mr de Bruyn said there was likely to be a small reduction in wages for bakery employees in Victoria due to award modernisation. He said there had been similar claims about wages when retailers moved from Kennett-era contracts to the award."There was not one job lost . . . and no increase in any price, anywhere."Mr de Bruyn warned against moves by Mr Abbott to scrap minimum-hours restrictions for young workers, which would lead "to the most atrocious exploitation of school children".He said this would make Mr Abbott's mooted changes worse than WorkChoices.But Mr Abbott said it was important there was flexibility in the system."One-size-fits-all rules don't work, and there has to be a capacity in the system, when it suits people, to do things differently, to have that flexibility without being subject to draconian rules and penalties."He reiterated there would be a "strong and effective, policed no-disadvantage test".
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