Job Cuts had Fueled the Call for the Labor Law in Australia

Leading business sectors have a more flexible market while the rest of Australia bled out all the jobs in the manufacturing and service industries.

One such company affected by the job cuts was Toyota with 350 staff in Altona plant was forced to take redundancy.

Ross Barker, who is the managing director of the Australian Foundation Investment Company, deduced that the sagging productivity can be greatly improved if there had been flexibility in the labor market. He also stated that in the recent years, there had been a decline in productivity.

Peter Burn, the director of public policy at the Australian Industry Group stated that those great number of people who lost their jobs, found other jobs in the manufacturing industry. The main issue was the risk of skills where the people stayed out of an industry for so long that they got “lost to the economy”. So these manufacturers were under an uncommon pressure from the high dollar and were finding ways to reduce hours rather than laying off their workers.

The minimum Australian wage is %15.51 per hour without the compulsory 9% superannuation, which is an equivalent to the $9 in Britain and $7 in the US; while in Tokyo, that was once considered as the most expensive labor markets internationally has a minimum wage of $10.16.

With the value of the dollar inflating the differences, workers in Australia remained amongst the most costly to employ all over the Western world.