Sunday, July 11, 2010

The Labor Government Should Regulate to Reduce Casual Contracts

Why doesn't Labor really help workers? The present government brought in a new employment system but it still allows companies to employ people on a casual basis. This pillar of John Howard's Work Choices continues. While employers can retain the services of people casually unions have no power to protect them. A recent example is a person employed permanently by Coles. The manager told the worker he was stupid and tried to press him into leaving voluntarily. When the downcast worker refused he was put on a casual contract and the hours offered per week diminished to such a low level that he had to find work elsewhere to feed himself.

Casual employees are supposed to be paid a higher hourly rate to cover annual leave, bank holidays and paid sick days, yet there are no clear laws setting such rates. The contract is really a bond for employers to "use" cheap labor. It ties the worker, not the employer.

Those working in shops are largely on casual contracts, 44 per cent. If laws gave them the choice these workers would jump at secure employment. Companies benefit financially from this system. The amount of labor required to meet market demand can be controlled absolutely. As demand falls so hours offered for work is reduced. This is heaven for companies with a tight profit margin such as retail. Companies say they would pay for holidays and sick leave if they could. This is an admission that they "do not" pay.
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