165,000 Workers Face Pay Cuts Under Coalition IR Plan
Some 165,000 Australian workers could lose vital protections such as overtime, penalty rates, and allowances if the Dutton Coalition wins government, according to a new report released today by the McKell Institute.
The report, titled ‘Risking the Floor: The Impact of the Coalition’s IR Agenda,’ also warns that approximately 3.3 million workers who currently rely on award rates as a foundation for negotiating enterprise agreements and individual arrangements would see their bargaining position severely weakened.
The occupations hardest hit would include nurses, electricians, teachers, and skilled tradespeople. The McKell Institute estimates a typical nurse could lose approximately $9,286 per year under the proposed changes, while a teacher faces potential losses of around $5,604 per year. Electricians and plumbers stand to lose around $13,431 and $5,694 per year, respectively.
The report points to the federal Coalition’s endorsement of a NSW Liberal policy, which proposes to remove award protections from workers earning above average weekly earnings. Shadow Minister for Employment and Workplace Relations Michaelia Cash has expressed her support for the NSW policy stating it contained “good ideas that align strongly with the Coalition’s approach to industrial relations.”
McKell Institute Acting CEO Sarah Mawhinney said the likely changes under a Dutton Government would represent a serious threat to workers and families across Australia.
“These cuts would mean real hardship for hundreds of thousands of Australians who rely on penalty rates and allowances to make ends meet,” Ms Mawhinney said.
“Workers like nurses, teachers, electricians, and plumbers are essential to our communities. Stripping away their basic protections would be devastating, not only for these individuals and their families but also for the broader economy.
“The Coalition’s actual industrial relations policy have been hidden from the public. Given this secrecy, and Michaelia Cash’s explicit praise for the NSW Liberals’ policy, it is reasonable to anticipate a Dutton Government would pursue similar measures.
“These are significant, harmful cuts that would disproportionately affect essential workers and their families, potentially pushing many Australians into financial stress or even poverty.”
The McKell Institute calls on the Coalition to immediately clarify its position and commit to maintaining current award protections for Australian workers.
About us:
Full report here