While the Government says the proposed changes will improve productivity and employment levels, their desire to mimic New Zealand’s flawed system indicates Australian workers are headed towards a low-wage future.

In an interview with Alan Jones on Sydney radio last week Mr Macfarlane said:

“We’ve got to ensure that industrial relations reform continues so we have the labour prices of New Zealand…We’re already a decade behind the New Zealanders. There is no resting.”

New Zealand introduced new labour laws, similar to those proposed for Australia, in 1991. Used as a point of reference for the Howard Government, the New Zealand system has been inspiration for radical changes to our workplace laws that will result in lower pay and conditions for working Australians. Last month John Howard said in a speech:

“If we look at the experience in New Zealand, we find that while 85 percent of people originally opposed labour market reform, 18 months after the changes 73 percent of employees were either very satisfied or satisfied with their working conditions and terms of employment.”

But the realty portrays a less-than-rosy picture. Australian wages are on average 30 percent higher than across the Tasman. When comparing wages of semi skilled production workers, Australian workers earn up to 48 percent more an hour than a New Zealand worker employed by the same employer.

While the minimum wage has increased 36 percent under Helen Clark’s Labour Government, it is still $4 below the Australian minimum of $12.75.

The Government continues to argue that the changes will improve productivity, employment growth and international competitiveness but it seems they are ignoring the realities of the well-beaten track before them.