Employers need to consult with workers to avoid counter-productive job losses
09 April, 2009
Australian businesses must stop taking the easy option and sacking staff during the economic downturn, say unions.
The sharp rise in unemployment in March confirms that employers, workers and unions must work together to minimise job losses during the downturn, said ACTU President Sharan Burrow.
“This week we have seen short-term decisions to axe hundreds of jobs by profitable Australian companies such as Rio Tinto and Telstra that will have devastating consequences not just for the individuals made redundant, but for entire regional communities,” Ms Burrow said.
“Even if it means taking a hit to their bottom line, big companies must do all they can to avoid sacking workers.
“Taking the easy option of retrenching workers is damaging to economic activity, and counter-productive for the company by leaving it short of skilled workers when the recovery begins.”
Ms Burrow said employers should be consulting their workforce about ways to manage through the economic downturn.
“Workers have often been with a company longer and know their business and industry better than senior management,” she said.
“Along with their union representatives, they can help come up with solutions to keep jobs.
“Employers have nothing to gain by keeping their workforce in the dark.”
Ms Burrow said more businesses should follow the example of the Tasmanian forestry industry, where employers and unions have negotiated a 10-day shutdown and part-time working arrangements to save jobs.
As money begins to flow from the government’s stimulus packages, unions have called for strings to be attached so that Australian job creation and retention is the top priority.
Unions have proposed new National Interest Expenditure Principles for Government spending that would maximise Australian jobs and local content, protect job security and workers’ rights, improve corporate governance and accountability, and place caps on executive remuneration and bonuses.
These principles should apply to all government funding, including the $43 billion National Broadband Project.
Ms Burrow said the banks must also play their part by keeping lines of credit open to business and passing on interest rate cuts.
Contact Details
Mark Phillips
Ph: 0422 009 011
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