United Voice News
Low paid workers and the Henry Review
The two track economy is a harsh reality for too many working Australians. The Henry Review reforms go some way to helping those being run over in the slow lane, says LHMU, one of Australia’s biggest unions.
A recent Auspoll survey of 5000 LHMU members found people’s top three concerns were job insecurity, low pay and inadequate retirement incomes – 78% of members said they were extremely or very concerned about having enough super when they retire.
So the Government’s announced changes to superannaution have been largely welcomed by Louise Tarrant, LHMU National Secretary. “This is a very substantial report and like everybody else we need to study it carefully.
“Our initial observations are that the proposed measures for increasing workers’ retirement savings are very good.
A good start
“The gradual increase of the Superannuation Guarantee from 9% to 12% and the up to $500 annual Government contribution for workers earning under $37,000 per annum will significantly improve the retirement incomes of workers – particularly those near the beginning of their working lives.
“Unfortunately, these initiatives come too late to make a big difference for older workers not far off retirement whose years of low pay and broken employment provide them with low superannuation benefits.
“There is a high risk in non-unionized parts of the economy that the benefits of these measures will be offset as employers absorb these new costs against future wage increases. So ensuring the minimum wage is maintained and that union bargaining is spread will be important to fully realising these urgently needed benefits.
“The proposed increase to $50,000 annually of the concessional superannuation caps for workers nearing retirement with superannuation balances below half a million dollars is irrelevant for the overwhelming majority of low income workers.
“For example, aged care and childcare workers who earn $15, $16 or $17 an hour, face a constant struggle to earn enough money to survive financially. They need every cent of their pay packets for the basic necessities of life. There’s a cash deficit in their lives, with no money left over to put aside for retirement.
“Our message to the Government is: Well done. This is a great start. Now let’s all work together to fix the policy hole to deliver superannuation justice for older low income earners,” says Louise Tarrant.
It seemed ludicrous that working to look after people pays so much less than cleaning a street!
Nurse, Carers, etc seem to be worth less!
I didn't get a job, couldn't get a start anywhere due to lack of experience and hence went back to motor mechanic/serviceman where I got paid $25.50 an hour!
It's TIME the industry, it's workers is recognized.