Australia’s Response to the Global Crisis Dave Robinson UnionsWA

Government’s response to the Crisis Govt “stimulus packages” – one off cash payments to working families Massive infrastructure spending - on roads, rail, ports, clean energy, universities and Broadband aged pension increase A paid parental leave scheme of 18 weeks $2.7bn for higher education $64bn over 5 years for hospitals and health ; tax cuts to middle classes; Increased support for newly retrenched workers,

Budget Forecasts Deficits totalling $300bn through to 2015; Unemployment at 8.25 per cent for 2009/10, 8.5 per cent for 2010/11 and 7.5 per cent for 2011/12 Growth at -0.5% for 2009/10, 2.25% at 2010/11 and 4.5% in 2011/12 and 2012/13 Inflation at 1.75 per cent for 2009/10

Other Indicators Wages growth to slows to 3.25% (2010/11) Major layoffs in mining, construction, retail, meat processing, clothing, manufacturing and vehicles, banking and finance and airlines Impact extends to all occupational groups - unskilled to professional Company layoffs at Rio Tinto, BHP, Qantas, Caterpillar, Argyle Diamonds, Anglo Coal and Pacific Brands Retail sales still relatively strong GDP growth rate has declined significantly

‘Financial Deregulation’ Tight regulation exists in banking and finance sector - the 4 major banks and secondary tier are in relatively good shape Federal government has underwritten and guaranteed deposits Union movement has argued for: a commitment to maintain jobs in the banking sector; measures to minimise housing foreclosures; removal of predatory lending and curtailing executive salary excesses.

Job Security Issues Unions opposed to layoffs and have proposed: –Govt financial support to fund a day a week for training and development of workers –Financial support to redundant workers and redeployment and skills training –Govt’s to use their purchasing power to support local companies and local jobs - “National Interest Expenditure Principles”